1. I wish to purchase my first home but need help meeting the monthly mortgage and other homeownership expenses, is there a program that will help me?
Yes, it is called the Homeownership Voucher Program. The program is for participants in the Housing Choice Voucher (HCV) program. The Homeownership Voucher Program can help with your monthly mortgage payment, just as it does with your monthly rent. You will need to have sufficient earnings and savings to be able to manage other homeownership expenses like repairs, maintenance, and equipment needed to be a homeowner.
2. Who can I talk to obtain additional information about this program?
The Housing Authority of the City of Arlington (AHA) manages this homeownership program for eligible HCV program participants in Arlington, Texas. See Staff Directory under this program name for contact information
3. If I am currently a participant in the HCV program and receive rental assistance can I use my voucher to buy a home and receive monthly assistance in meeting mortgage expenses?
Yes, provided that you qualify for a mortgage and meet other requirements. Please note that you will need to have sufficient earnings and savings to manage other expenses related to homeownership.
4. If I don’t have a rental voucher what can I do?
You must apply for a housing choice voucher at your local Public Housing Agency. This program is only for HCV participants.
5. What if the waiting list at the housing agency in my area is closed and the Public Housing Authority (PHA) is not accepting applications?
You can wait until the waiting list opens up again, or you can apply in another jurisdiction where the waiting list is open. However, many PHA’s give a preference to residents in the community over non-residents, and you may be required to reside in the jurisdiction of that PHA for at least one year. You should ask the PHA in the area where you are applying about their residency preferences.
6. If I get on a waiting list, how long do I have to wait?
The waiting time varies with each PHA. You need to contact the PHA for an estimated wait time. Generally, waiting times can vary between several months and several years.
7. If I get on a waiting list for a voucher, is there any special preference for me because I want to purchase a home?
No. There is no preference based on the fact that you desire to use your voucher for homeownership.
8. Are there any standards for the home to be purchased under this program?
The home must pass an initial housing quality standards inspection conducted by the PHA and an independent home inspection before the PHA may approve the purchase by the family.
9. What families are eligible to apply for homeownership vouchers?
Families must meet these requirements:
- First-time homeowner or cooperative member.
- No family member has owned or had ownership interest in their residence for at least three years.
- Except for cooperative members, no member of the family has any ownership interest in any residential property.
- Minimum Income Requirement: Except in the case of disabled families, the qualified annual income of the adult family members who will own the home must not be less than the Federal minimum hourly wage multiplied by 2,000 hours. For disabled families, the qualified annual income of the adult family members who will own the home must not be less than the monthly Federal Supplemental Security Income (SSI) benefit for an individual living alone multiplied by 12. The PHA may also establish a higher minimum income requirement for either or both types of families. Except in the case of an elderly or disabled family, welfare assistance is not counted in determining whether the family meets the minimum income requirement.
- Employment Requirement: Except in the case of elderly and disabled families, one or more adults in the family who will own the home is currently employed on a full-time basis and has been continuously employed on a full-time basis for at least one year before commencement of homeownership assistance.
- Additional PHA Eligibility Requirements: The family meets any other initial eligibility requirements set by the PHA.
- Homeownership Counseling: The family must attend and satisfactorily complete the PHA’s pre-assistance homeownership and housing counseling program.
10. What are monthly homeownership expenses?
Monthly homeownership expenses include:
- Mortgage principal and interest,
- Mortgage insurance premium,
- Real estate taxes and homeowner insurance,
- PHA allowance for utilities,
- PHA allowance for routine maintenance costs,
- PHA allowance for major repairs and replacements,
- Principal and interest on debt to finance major repairs and replacements for the home, and
- Principal and interest on debt to finance costs to make the home accessible for a family member with disabilities if the PHA determines it is needed as a reasonable accommodation.
- Lawn care
- All utilities
11. How much financial assistance can PHAs provide in each voucher?
The PHA uses its normal voucher program payment standard schedule to determine the amount of subsidy. The Housing Assistance Payment (HAP) is the lesser of either the payment standard minus the total tenant payment or the family’s monthly homeownership expenses minus the total tenant payment. The PHA may make the HAP payment directly to the family or to the lender.
12. What is the total monthly tenant payment?
For purposes of calculating the amount of financial assistance to be provided by the PHA, the monthly tenant payment is generally 30% of the family’s adjusted monthly income. For more information about how to determine total tenant payment, contact your local PHA.
13. What do I have to pay each month?
You have to pay at least the total tenant payment (approximately 30% of adjusted monthly income). However, if you purchase a home that has monthly expenses higher than those covered by the total of the financial assistance provided by the PHA together with the tenant payment (30% of income), any additional amount will have to be paid by the family. To keep families from purchasing a home that will result in a payment the family cannot afford, the PHA, may set affordability limits for their program.
14. Do families have to purchase a home in the jurisdiction where the PHA issued the voucher?
No. Families that are eligible for homeownership assistance may purchase a home outside the initial jurisdiction if the PHA in the new jurisdiction administers the homeownership voucher program and receives new families into the program. However, the family may only use the voucher to purchase a unit in an area where the family is income eligible at admission to the program.
15. How long can a family receive assistance under this program?
There is no time limit for an elderly household or a disabled family. For all other families, there is a mandatory term limit of 15 years if the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer, and for all other cases the maximum term of homeownership assistance is 10 years.