Housing Choice Voucher Program: Homeownership Option

The Homeownership Option of the Housing Choice Voucher Program is a part of the Tennessee Housing Development Agency's Rental Assistance Division (Section 8). The Homeownership Program offers a mortgage subsidy to low-income families who are not able to afford to purchase a home through traditional financing.

In the Housing Choice Voucher program, families typically pay 30% of their monthly-adjusted income (or the family's Total Tenant Payment) toward homeownership expenses, and THDA pays the difference between the family's Total Tenant Payment and the actual monthly mortgage payment. The mortgage assistance payments are paid directly to the lender's loan servicing company or the nonprofit agency that acts as the lender. Most homes close with a traditional first mortgage and a second mortgage financed by a NeighborWorks®-affiliated nonprofit organization. Some participants have also purchased their homes through USDA/ Rural Development (http://www.rurdev.usda.gov/tn/) and Habitat for Humanity affiliates. Qualified housing types include single family homes, manufactured homes, condominiums, townhouses and modular homes (must have a permanent foundation).

Application Process

Potential participants must submit a pre-application for screening, and the program specialist determines family eligibility. The Homeownership Specialist sends pre-applications to clients as they express interest in the program throughout the year.

Eligibility Requirements

Applicants must currently hold a Housing Choice Voucher to be eligible for the program. They must also 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, before a family can participate in the program. Families must meet the requirements below.

Elderly/Disabled Families Minimum annual income of (threshold)$6,540 Legally disabled spouse/HOH Minimum age requirement 63 yrs	All Other Families Minimum annual income of $15,000 Employed at least 12 months (avg. of 30 hrs per week)
NeighborWorks® Partners Affordable Housing Resources United Housing, Inc. Knox Housing Partnership	Region Middle Tennessee West Tennessee East Tennessee

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.