Most people know Section 8 helps with rent. But did you know it can help you buy a home? Here’s everything you need to know about turning your voucher into homeownership.
If you have a Section 8 Housing Choice Voucher, you’re probably using it to rent an apartment. But here’s what most people don’t know: that same voucher can help you buy a home and pay your mortgage.
New York State’s Section 8 Homeownership Program has helped over 750 families become homeowners since 2000. The statewide average monthly voucher assistance payment is currently $725—which can go directly toward your mortgage payment instead of rent.
Here’s how it works, who qualifies, and how to get started.
How the Section 8 Homeownership Program Works
Instead of paying your landlord, your Section 8 voucher pays part of your monthly homeownership expenses directly. You typically pay 30-40% of your adjusted income toward housing costs, and the voucher covers the rest.
What the Voucher Covers
Your monthly housing assistance payment can go toward:
- Principal and interest on your mortgage
- Mortgage insurance premium
- Property taxes and homeowners insurance
- Utility allowance (based on USPS standards)
- Allowance for routine maintenance costs
- Allowance for major repairs and replacements
- Debt service for accessibility modifications (if needed as reasonable accommodation)
- Cooperative or condo fees (if applicable)
What it doesn’t cover: Down payment, closing costs, or other upfront purchase expenses. You’re responsible for those.
How Long Does Assistance Last?
Voucher assistance for homeownership is limited to either 10 or 15 years depending on the term of your mortgage.
Exception: Elderly or disabled families are exempt from time limits and can receive assistance for as long as they qualify.
After your voucher assistance ends (or if it’s terminated for any reason, including earning too much money), you become responsible for the entire mortgage payment.
Who Qualifies
To be eligible for the Section 8 Homeownership Program, you must meet these requirements:
1. Current Section 8 Participant
You must be a current Section 8 voucher holder in good standing for at least one year.
2. First-Time Homebuyer
You must be:
- A first-time homebuyer (haven’t owned a home in the past 3 years), OR
- A single-parent displaced homemaker
No current ownership interest: No family member can have an ownership interest in any residential property when you start the homeownership assistance.
3. Minimum Income Requirement
You must have stable monthly income from:
- Full-time employment (at least 30 hours/week for one year before starting), OR
- Social Security or pension benefits
Minimum annual income varies by county but must be at least $10,300 (federal minimum wage × 2,000 hours).
Note: Welfare assistance doesn’t count toward this minimum for working-age families. Elderly and disabled families are exempt from employment requirements.
4. Credit Qualified
You must:
- Be pre-approved by a mortgage lender that meets HUD guidelines
- Have not previously defaulted on a mortgage
- Pass credit checks
5. Complete Homebuyer Education
You must attend and complete:
- Homebuyer education classes through a HUD-approved housing counseling agency
- Housing counseling services
New York State Homes and Community Renewal (HCR) has partnered with several HUD-approved agencies in each program area to provide these classes.
What Types of Homes Can You Buy?
You can purchase:
- Single-family homes
- Condominiums
- Cooperatives (co-ops)
- Manufactured homes
Property Requirements
The home you choose must:
- Pass a Housing Quality Standards (HQS) inspection conducted by your local Section 8 program before voucher assistance can be authorized
- Pass an independent professional inspection that you arrange and pay for (you must provide a copy of this report to your local Section 8 program)
Based on the findings in the professional inspection report, the local Section 8 program reserves the right to deny voucher assistance.
Down Payment Requirements
You’re responsible for any required down payment. At least 1% of the down payment must come from your personal resources (not gifts or loans).
How to Apply: Step-by-Step
Step 1: Contact Your Local Section 8 Administrator
Reach out to your local program administrator to express interest in homeownership. In NYC, programs are administered by:
- NYC Housing Authority (NYCHA)
- NYC Department of Housing Preservation and Development (HPD)
- New York State Homes and Community Renewal (HCR)
Ask about availability—not all local programs may be accepting new homeownership participants at all times.
Step 2: Attend Homebuyer Education
Complete required homebuyer education classes and housing counseling through a HUD-approved agency. Your local Section 8 program will provide you with a list of approved providers in your area.
Step 3: Get Pre-Approved for a Mortgage
Apply to a mortgage lending institution of your choice. The lender must meet HUD guidelines for the Section 8 Homeownership Program.
During this process:
- Your credit will be checked
- You’ll determine how much you can afford
- You’ll receive pre-approval showing you’re qualified to purchase
Step 4: Start House Hunting
Once pre-approved, begin shopping for a home within your budget that meets program requirements.
Step 5: Get Inspections
Once you’ve found a home:
- Arrange and pay for an independent professional inspection
- Provide a copy of the inspection report to your local Section 8 program
- Schedule the HQS inspection conducted by the Section 8 program
Both inspections must show the home meets standards before voucher assistance can be approved.
Step 6: Close on Your Home
After inspections pass and everything is approved:
- Complete the home purchase closing
- You must occupy the home as your primary residence
- No sub-letting is allowed
Step 7: Annual Recertification
You’ll continue to have annual recertifications to remain eligible for the program, just like with rental vouchers.
Can You Move and Keep Your Voucher?
Yes! If you want to move from your current area and continue using voucher assistance to purchase a home elsewhere, you may do so—as long as the receiving Housing Authority operates a Section 8 Homeownership program and is accepting new families.
What Happens If Your Income Increases?
If your income increases significantly and you no longer qualify for assistance, your voucher subsidy will be terminated and you’ll be responsible for the entire mortgage payment.
This is why it’s crucial to:
- Only buy a home with a mortgage you could eventually afford on your own
- Build emergency savings
- Plan for the possibility that voucher assistance is temporary
Success Story: Over 750 Homeowners and Counting
Since the program evolved from a small pilot in 2000, New York State has become a national leader in homeownership closings with over 750 successful purchases.
Participants include:
- Single and two-parent families
- Grandparents
- Single individuals
- Elderly and disabled persons
Key Takeaways
- Section 8 isn’t just for renters – Your voucher can help buy a home
- Average monthly assistance: $725 goes toward mortgage, taxes, insurance
- Must be current voucher holder for at least 1 year in good standing
- Must be first-time homebuyer or single-parent displaced homemaker
- Minimum income required ($10,300+) from employment or benefits
- Must complete homebuyer education and get mortgage pre-approval
- Home must pass two inspections (HQS and independent professional)
- Down payment required (at least 1% from personal resources)
- Assistance lasts 10-15 years (unlimited for elderly/disabled)
- Can buy single-family, condo, co-op, or manufactured home
- Must live in home as primary residence (no sub-letting)
- You’re responsible for mortgage if assistance ends
Ready to Get Started?
If you’re a current Section 8 voucher holder in NYC, contact your program administrator to ask about homeownership opportunities:
- NYCHA Section 8: nyc.gov/nycha
- HPD Section 8: nyc.gov/hpd
- HCR Section 8: hcr.ny.gov/hcv
Homeownership through Section 8 isn’t easy—there are income requirements, inspections, education classes, and long-term responsibilities. But for families who qualify, it’s a path to building equity and stability that many don’t know exists.
Don’t let your voucher just pay rent. Use it to build wealth.
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