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The Housing Authority of Pocatello's Housing Choice Voucher Homeownership Option (HCVHO) is designed to promote and support homeownership by families who are current participants in the section 8 Rental Assistance Program. The availability of these assistance payments helps pay the cost of homeownership and provides additional assurance for mortgage lenders.
The Pilot program will make available 2 vouchers for homeownership to qualifying participants.
The Housing Authority will work with local lenders and real estate professionals to make the American dream of homeownership available to a broader spectrum of pocatello citizens.
The HCVHO program became available on June 1, 2004.
FREQUENTLY ASKED QUESTIONS
Q: What are the eligibility requirements?
A: An individual of family must:
-Be a participant in good standing in the Section 8 program.
-Have received Rental Assistance for one year.
-Meet the HUD definition of a first time homebuyer.
-Submit a letter of pre-qualification from a lending institution.
-Be selected from a lottery of other pre-qualified families.
-Sign a Statement of Homeownership Obligations.
-Satisfactorily complete four classes prior to entering into a sales contract:
Home Maintenance
Budgeting and Money Management
Credit Counseling
Homebuyer Education Seminar
-Provide cash down payment of 3% of the purchase price of the home. 2% of this requirement may be gifted to the family.
-Pay the closing costs of the loan.
-Pay for an inspection of the home.
-Provide the lender and real estate professionals with all pertinent documentation.
-Comply with any additional special requirements for homeownership assistance as specified by Housing Authority of Pocatello.
Q: Is there a minimum income requirement?
A: Yes, you must have a minimum income of $10,300 annually. For disabled $6,768 annually.
Q: What bankers and real estate professionals should I use?
A: You may choose any lender or real estate professional.
Q: Must I have good credit?
A: Yes. If your credit history is poor, a credit counselor can give you instruction to help you repair your credit.
Q: What kind of home may I purchase?
A: You may purchase an existing home or one that is under construction at the time you are determined eligible for homeownership. The property must be a one unit property or single family dwelling in a co-op or condominium.
Q: What other costs might there be?
A: You will make a minimum down payment of 3% of the purchase price of the home and closing costs associated with the loan. You will pay for an appraisal, which may cost $200 to $300. You will also pay for a professional inspection, which may be $250. There may be incidental expenses prior to your purchase.
Q: May my family help me by the home?
A: In most cases, your family can help with the initial expenses prior to purchasing the home. It is important to remember that under Section 8 regulations, no one other than those occupying the home can own an interest in it.
Q: May I have a roommate?
A: No. Under the standard family obligations for use and occupancy, no other person but members of the assisted family may reside in the unit except for foster children or a live-in aide.
Q: Is the purchase price of the home limited?
A: The amount you are able to pay for a home depends on your total income and resources. The mortgage lender will consider your total income, your HCHVO assistance and any other assistance you are receiving from a family member or agency. The lender will pre-qualify you for a loan based on your income, financial obligations and credit score. A letter stating your pre-qualification, brought to the Housing Authority, will allow your name to be placed in the lottery for a HCHVO voucher.
Q: May I bring in a pre-qualifying letter now?
A: No. Letters of pre-qualification will be accepted after public informational meetings.
Q: How long will I continue to receive HCHVO assistance?
A: Assistance will continue as long as participants qualify under HUD regulations. Certain loan term limits may apply. |
