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Housing
Choice Voucher Program
HUD issued a final rule
on 10-12-00 for the homeownership program, allowing first time homeowners
to use voucher subsidy to meet monthly mortgage expenses.
Rockford Housing Authority
has placed 10 clients in their own homes since the inception of
the program, with a goal to place 2 families per year.
Family
Requirements
| 1. |
Must be currently enrolled in Family Self-Sufficiency
or have successfully completed the program. |
| 2. |
Must be in compliance with Section 8 and FSS programs. |
| 3. |
Must qualify as a 1st time homeowner (or not have been a homeowner
for 3 years). |
| 4. |
Families must be voucher holders for at least one year. |
| 5. |
Meet minimum yearly gross income of $10,300.00 |
| 6. |
Employed continuously for one year a minimum of 30 hours per
week. (Not applicable to elderly and disabled residents) |
| 7. |
Families that previously requested assistance and have defaulted
with their mortgage are not eligible for this program. |
Family
Responsibilities
Attend
and complete pre-homeownership counseling.
| Topics include: |
| |
Home maintenance
Budgeting and money management
Credit repair/credit counseling
Financing aspects
Types of loans
House search
Fair housing information |
| Type of units eligible for this
program: |
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House –
existing or an under construction house at the time the family
enters into a contract of sale, |
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Co-Op (no duplex) |
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Condo |
| Two home inspections needed: |
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An independent inspection paid
for by the family. |
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A Housing Quality Standard (HQS) by the Rockford
Housing Authority. |
(Copies
of inspections will be kept in the resident’s Section 8 file).
Home
Ownership Payment
Voucher Payment Standard determines maximum subsidy.
| The monthly Homeownership Assistance
Payment (HAP) is calculated as the lesser of: |
| |
Voucher Payment Standard minus
Family’s Total Tenant Payment (TTP), which is 30% of gross
adjustment income. |
Homeownership Expenses
Minus the Total Tenant Payment
Principal and interest on mortgage debt
Mortgage insurance
Real estate taxes
Home insurance
If home is co-op or condo, you may include membership or maintenance
fees
Prohibited types of Mortgage
Balloon payment mortgages
Variable interest rate loans
Seller financing (lease to purchase)
Seller financing on a case-by-case basis
Voucher Term Limits
If mortgage is less than 20 years, 10 years maximum assistance.
If mortgage is 20 years or more, 15 years maximum assistance.
One time only payment if down payment option is used.
Down Payment By Family
The RHA requires a minimum down payment of five percent (5%) of
the purchase price.
A minimum of $1000.00 of family’s own funds.
Voucher funds may be used to assist with down payment or closing
cost.
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