Family Self-Sufficiency (FSS) and Homeownership Voucher Program

What is the Family Self-Sufficiency Program?

In the THDA Family Self Sufficiency (FSS) program, we work with families to create step-by-step plans that lead to economic independence. The purpose of the FSS program is to facilitate access to the supportive services that families need to become free of public assistance in a five-year time period. All participating Housing Choice Voucher (HCV) families have the opportunity to participate in the FSS program if they desire.

The FSS program is voluntary for THDA’s Housing Choice Voucher families. However, they must enroll in the FSS program to begin the homeownership process.

What are the benefits of participating in FSS?

In addition to gaining access to valuable supportive services, THDA establishes a savings (or escrow) account for FSS families when their earned income increases from obtaining a job or receiving a job-related promotion or raise. When a HCV participant's income increases, their family contribution toward rent also increases. The monthly escrow credit (or amount THDA sets aside in an escrow "savings" account for the family each month) it is approximately the family's increase in rent.

When the family completes their contract of participation and/or becomes free of public assistance, they are eligible to receive the balance of their account.

HCV Homeownership Voucher Program

THDA’s Homeownership Voucher Program offers a mortgage subsidy to low income households that currently receive our Housing Choice Voucher (HCV) Rental Assistance and enrolled in our FSS program. The subsidy factors are the same as the rental program with expenses being an additional consideration for homeownership. THDA’s assistance allows low income families to purchase a home they would otherwise not be able to. The mortgage assistance payment is paid directly to the lender or loan servicing company. The families must complete both, pre-purchase and post-purchase counseling.

THDA will review the loan terms, housing quality standards, independent home inspection report, appraisal, and contract of sell. The seller must be willing to pay for and complete all of the repairs.

Eligibility Requirements include the following:

All households:

All household members that will be included on the mortgage must have received assistance with a THDA voucher for at least one year.
THDA Voucher must be current and in good standing.
All household members must not owe a debt to any housing authority.
Must be first-time homebuyers (or have not owned a home in the last three years).
Bankruptcies must be discharged for at least one year for Chapter 13 and three years for Chapter 7.
Must have saved $1,000 or 1% of the purchase price, whichever is greater, toward the home purchase.
Savings cannot be a gift or a loan. The applicant(s) must have saved the money over a period of time and apply it as a down payment or toward closing costs associated with the home purchase.
Credit score must be at least 620, if one exists.
Must complete HUD approved pre-purchase counseling.

Elderly/Disabled Families
Minimum SS income is $8,088
Total income (including public assistance) is $15,000
Minimum age requirement 63 yrs for elderly

All Other Families
Minimum annual income of $15,000
Employed at least 12 months (avg. of 30 hrs per week)

Application Process

The pre-application to the FSS/Homeownership programs is available by clicking on the link on this page. Potential participants must submit a pre-application for screening, and the FSS Specialist will determine the family’s eligibility.

For more information on the FSS or Homeownership Program, please contact:

West TN:

Mia Parker -

Middle TN:

Keisha Smith

East TN:

Candice DeGuira

Administrative Support:

Marva Hemphill

FSS/Homeownership Manager:

Gretchen Mason