Inside:
- e-Perspectives Home
- Section 8 Vouchers Make Home-Ownership Dreams a Reality
- Overview of the Section 8 Home-Ownership Option
- Fast Facts: Financing Home Ownership with Section 8 Vouchers
- News & Events
- e-Perspectives Archives
E-mail Alerts
Receive e-mail announcing the latest
Other Resources:
Fast Facts: Financing Home Ownership with Section 8 Vouchers
The Waco Housing Authority has launched the Section 8 home-ownership option in its community. The program authorizes WHA to use Section 8 rental vouchers for mortgage payments in lieu of monthly rental assistance. Here is an example of how the home-ownership assistance program can help a working family with an annual income of $13,404 purchase a three-bedroom home.
| Loan Amount |
|
|
| Home purchase price | $72,000 | |
| Down payment (buyer) | (720) | |
| Down payment assistance (CDBG funds) | (9,780) | |
| Total loan amount | $61,500 | |
| Loan Calculation (30 years @ 8.5%) |
|
|
| Principal and interest | $473 | |
| Other Expenses |
|
|
| Taxes | 100 | |
| Insurance | 40 | |
| Total monthly expenses | $613 | |
| Section 8(y) Assistance Payment Calculation |
|
|
| Monthly
home-ownership expenses (Voucher payment standard of $615) [1] |
$613 | |
| Homeowner's
payment (30% of monthly income of $1,117) |
(335) | |
| Home-ownership assistance payment [2] | $278 | |
Notes
- HUD publishes fair market rents for each market area in the United States. Individual PHAs set their own payment standards at 90 to110 percent of the fair market rent for their area. In Waco, the one-bedroom standard is $415, the two-bedroom standard $546, the three-bedroom standard $615 and the four-bedroom standard $765.
- The home-ownership assistance payment is equal to the family's monthly home-ownership expenses minus the family contribution or the payment standard minus the family contribution, whichever is lower.
e-Perspectives, Volume 1, Issue 6, 2001
Federal
Reserve Bank of Dallas  Community Affairs Office  P.O. Box 655906, Dallas, Texas 75265-5906 214-922-5377 |
||
| Gloria
Vasquez Brown Vice President |
Nancy
C. Vickrey Assistant Vice President and Community Affairs Officer |
|
| Jackie
Hoyer Houston Branch Senior Community Affairs Advisor |
Veronica
Garza Community Affairs Specialist |
|
| Toby
Cook Community Affairs Specialist |
Diana
Garza Community Affairs Specialist |
|
| The views expressed are the authors' and should not be attributed to the Federal Reserve Bank of Dallas or the Federal Reserve System. Articles may be reprinted on the condition that the source is credited and a copy is provided to the Community Affairs Office. | ||