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. 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.

Most homes close with a traditional first mortgage financed by an approved lender. The servicing lender must be able to apply two payments each month and will not sell the loan. 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.

Qualified housing types include single family homes, manufactured homes, condominiums, townhouses and modular homes (must have a permanent foundation). The entire home must be owner occupied therefore, duplexes are not allowed.

Application Process

The pre-application is available at our website: http://www.thda.org/hcv/hop.html. Potential participants must submit a pre-application for screening, and the Homeownership Specialist will determine the family’s eligibility.

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.
• Completed HUD approved pre-purchase counseling recently.

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)

Documentation:

In addition to the pre-application the following information is required: a copy of your credit report (can obtain a free one at www.annualcreditreport.com), three (3) months of paycheck stubs and/ or ALL income in the household (i.e. social security/disability, child support, alimony, and etc). If self-employed, two (2) years of income tax returns along with schedule C’s.

For more information on the Homeownership Program, please contact Mia Parker at (615) 815-2172, or Gretchen Mason, FSS/Homeownership Voucher Manager, at (615) 815-2165.