Can You Buy a House With a Section 8 Voucher?

The Section 8 Housing Choice Voucher (HCV) program offers rental assistance to eligible low-income families, elderly individuals, and persons with disabilities. The program also includes an option allowing qualified participants to use their voucher to purchase a home. This Housing Choice Voucher homeownership program enables families to apply their monthly housing assistance toward mortgage payments and other homeownership expenses instead of rent. The initiative provides a pathway for voucher holders to build equity and achieve long-term financial stability through homeownership.

Eligibility and Program Requirements

To qualify for the Section 8 homeownership program, families must meet specific criteria established by the Department of Housing and Urban Development (HUD) and their local Public Housing Agency (PHA). A family must be a first-time homebuyer, meaning no household member has owned a home in the past three years. One or more adults owning the home must be employed full-time (at least 30 hours per week) for at least one year. This employment requirement is waived for elderly or disabled families.

Applicants must meet minimum income thresholds, typically an annual income of $10,300 to $14,500. For elderly or disabled families, welfare assistance may count towards income requirements, or the minimum may be based on the monthly Federal Supplemental Security Income (SSI) benefit multiplied by 12. All applicants must complete a pre-assistance homeownership and housing counseling program. Families must be current Section 8 voucher holders in good standing with their PHA and not have previously defaulted on a mortgage while receiving voucher homeownership assistance.

The home must meet certain criteria. It must pass a Housing Quality Standards (HQS) inspection by the PHA and an independent home inspection paid for by the applicant. The property must be a single-family home, cooperative, condominium, or manufactured home. The home can be located anywhere within the PHA’s jurisdiction, but applicants must verify their local PHA’s participation as not all offer the program.

Applicants need to gather documents for their PHA to demonstrate eligibility. This includes proof of identity and citizenship or eligible immigration status for all household members. Income verification requires recent pay stubs, tax returns, bank statements, and documentation for other income. Proof of current address and household composition is also necessary. These documents allow the PHA to verify income, family size, and other eligibility factors in accordance with program guidelines.

The Home Purchase Process

The home purchase process begins by contacting the local Public Housing Agency (PHA). This often leads to attending an orientation session. After orientation, the applicant submits a formal application package with documentation to the PHA. The PHA reviews the application, which may involve interviews and additional verification, before granting approval. Upon approval, the participant can find a suitable home. This involves working with real estate agents to identify properties that meet program guidelines.

After a home is identified and a sales contract executed, the property must undergo two inspections. The PHA conducts a Housing Quality Standards (HQS) inspection, and the buyer must arrange and pay for an independent home inspection. Significant issues identified must be addressed before the sale can proceed. Concurrently, the applicant secures financing by applying for a mortgage with a lender. Lenders will assess creditworthiness and financial capacity, often requiring a credit score above 620-640.

The PHA may coordinate with the chosen lender, providing information on the estimated housing assistance payment to be included in the mortgage loan approval decision. While the Section 8 voucher assists with monthly expenses, the program does not provide funds for down payments or closing costs, though some PHAs may offer down payment assistance. At closing, the participant signs necessary documents, including the mortgage and deed, taking ownership.

Financial Assistance and Post-Purchase Responsibilities

Financial assistance converts the monthly rental subsidy into a payment covering homeownership expenses. The Public Housing Agency (PHA) calculates the monthly housing assistance payment based on the family’s income and total housing costs, which include:
Mortgage principal and interest
Property taxes
Homeowner’s insurance
Utilities
Routine maintenance

This payment is generally made directly to the lender or to the homeowner.

Assistance is time-limited for most participants. For mortgages with a term of 20 years or longer, assistance can be provided for a maximum of 15 years. If the initial mortgage has a term shorter than 20 years, the maximum assistance period is 10 years. However, elderly or disabled families have no time limit on assistance, potentially receiving support for the entire mortgage term as long as they remain eligible.

As homeowners, participants assume ongoing financial and maintenance responsibilities. They are accountable for paying the portion of the mortgage not covered by the voucher, property taxes, homeowner’s insurance, and utility costs. Homeowners must also budget for and perform routine home maintenance and repairs. Some PHAs may offer or require continued homeownership counseling post-purchase.

An ongoing obligation is reporting any changes in income, family composition, or other relevant circumstances to the PHA. Such changes can affect the calculated housing assistance payment, requiring adjustments to ensure the family continues to receive the appropriate level of support. The home must remain the family’s principal residence; it cannot be rented or leased. Adhering to these responsibilities maintains eligibility.