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PAWTUCKET HOUSING
AUTHORITY
HCV HOMEOWNERSHIP
PROGRAM
GENERAL OVERVIEW
PHA is not required to administer a Homeownership Program;
It is voluntary;
The PHA has made a commitment to educating, enhancing and empowering the lives of the people we serve.
The PHA believes that the Section 8 Homeownership is one of the programs that will allow us to achieve this commitment.
PHA
PRELIMINARY
REQUIREMENTS
Be a participant of the Section 8 Housing Choice
Voucher Program for at least ONE year
Must be a participant in “good standing”:
Do not currently owe money to the PHA under a
repayment agreement and
Have had good rental payment history while on
the Section 8 Housing Program.
EMPLOYMENT REQUIREMENT
At least one adult family member must be employed full-time (30 hours per week)
Employed for one year
Requirement does not apply to an elderly/disabled family
INCOME ELIGIBLE
Minimum gross annual income of
$10,300.
Public assistance (welfare) cannot be
counted in determining income eligibility
requirements.
Elderly/disabled families are exempt
from this requirement.
FIRST-TIME HOMEBUYER
To qualify as a “first-time homebuyer”
the family may NOT include:
• Any person who has owned interest in part or
whole of a residence 3 years prior to
commencement of homeownership
assistance, or
• Any person who currently owns title or
cooperative membership shares.
First-time homebuyer: also includes a single parent or displaced homemaker who, while married, owned a home with his or her spouse, or resided in a home owned by his or her spouse.
MINIMUM DOWN-PAYMENT
A 3% down
payment is
required.
Of the 3% - at least
1% must be from
the family’s
personal
resources.
ADDITIONAL ELIGIBILITY
REQUIREMENTS
HOMEOWNERSHIP
COUNSELING CLASSES
Must attend and satisfactorily complete a
pre-assistance homeownership and
housing counseling program and
The Homeownership Classes must be
approved by the PHA and in conformance
under HUD’s Housing Counseling
program.
FOCUS OF COUNSELING
CLASSES
Budgeting and money
management;
Credit counseling;
Obtaining mortgage
financing;
Negotiating the
purchase price of
home;
Home maintenance;
and
Other pre-purchasing
educational information
ELIGIBLE UNITS FOR
PURCHASE
The property
purchased must
be a one-unit
property or a
single family
dwelling unit or a
condominium
INELIGIBLE UNITS
Cannot buy a
multi-family
home
\
HQS INSPECTION REQUIRED
Unit must pass a Housing Quality Standard inspection
A professional inspection will also be done at the request of your financial institution
The PHA may refuse homeownership assistance based on the results of each inspection
FINANCING
YOUR MORTGAGE
OBTAINING MORTGAGE
FINANCING
You choose which Financial Lender you want
to use;
The PHA must approve the financing before it
is finalized;
It is your responsibility to obtain all financing
for the purchase of a home;
The PHA will refer you to appropriate agencies
for additional financing assistance;
Financing - must be provided, insured or
guaranteed by the state or federal
government;
Financing - must comply with secondary
market underwriting requirements; or must
comply with generally accepted private
sector underwriting standards;
The PHA is not responsible for
any financing or become a co-
signer for any financing to
obtain a home;
The PHA will give you a letter
of commitment and certification
of your eligibility for home-
ownership assistance
The letter will indicate the
monthly payment you are
eligible to receive
The family is responsible for
payment of all services
required for securing financing
and actual purchase.
MAXIMUM TERM FOR
HOMEOWNERSHIP ASSISTANCE
Homeownership Assistance will
continue as long as the family and
property continue to meet program
requirements, but cannot exceed the
following:
If the mortgage is 20 years or longer,
initial mortgage assistance will continue
for 15 years from the date of
commencement of homeownership
All other cases are a maximum of 10
years
EXCEPTION ON MORTGAGE
TERM – ELDERLY/DISABLED
The maximum mortgage term of 10
or 15 years does not apply to elderly/
disabled families
The family must qualify as an elderly
family at the start of homeownership
assistance in order to receive this
exception
If a disabled family qualifies as
a disabled family at any time
during receipt of homeowner-
ship assistance for the family
the exception will apply
CONTRACT FOR SALE
REQUIREMENTS
Meet your Lender’s requirements;
Specify price and other terms of sale;
Specify that the purchaser will arrange
for pre-purchase inspection by an
independent inspector;
CONTRACT FOR SALE
REQUIREMENTS (CONT’D)
Specify purchaser will not be obligated to purchase the unit unless inspection is satisfactory to purchaser and PHA;
Specify purchaser is not obligated to pay for any necessary repairs; and
Must contain a certification that the seller has not be debarred, suspended or denied participation.
MONTHLY HOMEOWNERSHIP
PAYMENT:
Homeownership Payment is the lower of:
1. The Payment Standard minus the
Total Tenant Payment or
2. The family’s monthly homeownership
expenses minus the total tenant
payment.
Payment may be sent to the family
or lender;
If the payment exceeds the amount
due to the lender, the Housing
Authority must pay the excess
directly to the family.
PORTABILITY
A family may move to another
city/town with homeownership
assistance;
Family must meet that Housing
Authority’s requirements under
their Homeownership Program.
MOVING WITH CONTINUED
ASSSITANCE
The family may move to a new
unit with either:
1. Tenant-based housing or
2. Homeownership assistance
DENIAL OR TERMINATION OF
ASSISTANCE
PHA may deny or terminate
homeownership assistance, as
well as tenant-based
assistance, if the family fails to
meet it’s obligations under the
homeownership program.
DEFAULT ON PREVIOUS
MORTGAGE
The PHA cannot begin home-
ownership assistance for a family
who has previously received
assistance under the home-
ownership option and who has
defaulted on the mortgage.
RECAPTURE OF
HOMEOWNERSHIP ASSISTANCE
If the family sells or refinances
the home, the PHA shall
recapture a percentage of the
homeownership assistance.
The amount of recapture will
automatically be reduced over
a 10-year period, beginning
one year from the purchase
date, in annual increments of
10 percent.
NOTES: