HUD Section 8 Homeownership Voucher Program

Written By: Daniel Garcia

For those of us that work with many first-time homebuyers or low-to-moderate income buyers, we may from time-to-time come across a client that has a Section 8 Homeownership Voucher. This program was introduced by HUD as a way to increase homeownership for low-to-moderate income families. It works very similar to the Section 8 Rental assistance program in which the voucher will pay a portion of the borrower’s mortgage payment each month for up to 15 years or the entire term of the mortgage if one of the borrowers is disabled.

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This program is an excellent way of helping families purchase their own home. However, there are many things to keep in mind if you are processing a file that is utilizing this Section 8 Homeownership Voucher. I’ve included a list of some of these things below:

• First and foremost you must ensure that your investor guidelines will allow the use the voucher. Although many mortgage programs allow it, such as FHA, many investors will not purchase a loan in which the borrower is utilizing this voucher.
• Although the voucher pays a portion of the mortgage payment, we as processors must indicate the assistance amount as income. It will be entered on the 1003 in Section V under “Other” income.
• Homeownership Voucher Program guidelines do not allow non-purchasing spouses. In other words, if you have a file in which the financing is only in the wife’s name, it’s a no-go. The husband MUST be on the loan as well.
• Units assisted under the voucher homeownership program must meet HUD’s Housing
Quality Standards (HQS) as identified in 24 CFR § 982.401 before the homeownership
voucher assistance can be approved. In fact, two inspections are required for a unit to
be approved for assistance: an HQS inspection, performed by the PHA’s inspector, and
a professional home inspection conducted by a qualified independent home inspector
that is hired by and paid for by the family.
• Families who wish to participate in the Homeownership Voucher Program must first
attend and complete a homeownership counseling program required by the PHA per 24
CFR § 982.630. The family must receive this counseling by a HUD approved counseling agency.

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So these are the basic things to look for when utilizing this type of assistance. For further information on the program you can go to HUD’s website at the following link:

Stay tuned for more useful information. Make it a great week.

About The Author

Daniel Garcia - As an NAMP® staff writer, Daniel Garcia is a loan processing instructor for Loan Processor University ( Daniel also currently works for a non-profit housing and community development corporation where he serves as a senior loan officer and heads up the organization’s homebuyer education program. Daniel provides consultation services to other non-profit housing organizations nationwide, training in the areas of mortgage qualification and processing, state and federal laws, adult education training methods, and credit/foreclosure intervention counseling and program setup. He has gained a variety of experience, from mortgage processing and loan originating to loan servicing and loss mitigation. If you're interested in becoming a writer for NAMP®, please email us at:

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