A Section 8 homeownership voucher could help you pay your mortgage, and this could make buying a home much easier.
If you need help right away, this relief program will direct deposit a short term loan into your bank account. Review the terms of this funding closely before accepting these funds.
But is such a voucher right for you? Does it have any drawbacks? Keep reading to find out.
If you think the Section 8 program solely provides rental assistance, think again. Sure, you can use a Section 8 Housing Choice Voucher to pay part of your rent, but since 2000, the Department of Housing and Urban Development (HUD) changed things up a bit.
What did the HUD do? They started allowing Section 8 recipients to use their Housing Choice Vouchers to buy homes. Why did they do this? To make better use of those funds and allow low-income families to enjoy the pride of owning a home while building equity and their financial futures.
This may sound like great news if you were looking to buy a home one day, but feel like you’ll never have the income or savings that achieve that goal. Is the Section 8 Homeownership Program a perfect fit for your needs, though? Let’s break it down.
The Main Benefit of the Section 8 Homeownership Program
How many people dream of owning their own home yet never get the chance to make it happen? The answer is a lot, and the main reason is that they lack the funds to buy a home.
This can turn someone into a renter for life, where they spend each month forking over their hard-earned cash to a landlord who builds equity and profits over time. But if you get a homeownership voucher, you can become that landlord and start to build a better financial future.
In short, the homeownership voucher fills the void to make owning a home more affordable. And this is why getting such a voucher is so attractive to many. Add in the pride you’ll feel once you get the keys to your new home, and it’s no wonder why these vouchers have such long waiting lists.
Other Benefits of Becoming a Homeowner With Help From Section 8
One downside to renting is that it can often limit you to lesser neighborhoods that are unsafe or not ideal for raising your family. When buying a home, you typically get better options in terms of neighborhoods.
What about discrimination? While illegal, it can still happen, especially when it comes to Section 8. Some landlords may be reluctant to accept a Section 8 voucher from a renter. When buying a home with your voucher, though, you’re less likely to face discrimination.
A homeownership voucher doesn’t just make it easier to buy a home, but it also helps you become a better homeowner. It does this through mandatory education classes on homeownership, personal finance, and more that you can use in the future and even pass down to your kids.
Lastly, the help you’ll get from a housing partner is huge. Since buying a home can be an intimidating process, knowing you’ll have a professional by your side to help with inspections, paperwork, and more is a comforting feeling.
The Drawbacks of the Section 8 Homeownership Program
As mentioned, there are long waiting lists for Section 8 homeownership vouchers. As such, you could be waiting for several years to buy that home.
If you were looking to move to a costly real estate market, you might be disappointed, as a voucher may not be enough to get you there.
While a seller may not discriminate when showing you their home, it’s worth noting that some lenders stray away from homeownership vouchers. This could make it a bit difficult to secure financing.
Also, homeownership vouchers don’t last forever. If your mortgage is shorter than 20 years, your voucher will end after 10 years. And if your mortgage is over 20 years, the voucher will end after 15. At that point, you will have to pay your mortgage without Section 8 voucher assistance.
If you’re ready to proceed with pursuing a Section 8 homeownership voucher after reading everything above, contact your Public Housing Agency now.