Let Section 8 Help You Buy a Home

The Louisville Metro Housing Authority's Section 8 Homeownership Program allows eligible Section 8 participants to use their Housing Choice Voucher subsidy toward a mortgage payment instead of for rent.  This assistance is with the monthly mortgage payments only; the client is responsible for the costs of inspections, down payment and closing.  The term of assistance is 15 years if the mortgage has a term of over 20 years and 10 years in all other cases.  There is an exception made for elderly and disabled families.

The first step is up to you.

All participants must attend and complete homeownership counseling.  The homeownership counseling program will cover home maintenance; budgeting and money management; credit counseling; negotiating purchase price; securing mortgage financing; and finding a home.  The two agencies with programs approved by the Louisville Metro Housing Authority are:

The Housing Partnership
333 Guthrie Green, Suite 404
502-585-5451

Louisville Urban League
1535 West Broadway
502-561-6830 x122

The Section 8 Homeownership Program has a strict set of guidelines that include eligibility and on-going obligations. 

The eligibility requirements for participants include:

First-time homeowner

Minimum income requirement of $10,300 (minimum wage x 2,000 hours) or, in the case of a disabled family, $6,948 (monthly SSI benefit for a single x 12 months)

One or more adult members of the family are currently employed full-time and have been continuously employed during the past year (exceptions made for elderly and disabled)

Has not defaulted on a mortgage to purchase a home under the Homeownership option

Does not have a present ownership interest in another residence

Has not been in the termination of assistance process more than once in the last two years

Has a stable family composition of at least one year

Has completed one-year under lease in the Section 8 Program

Has been under the current rental lease, in the same unit, for over one year and must be a month-to-month tenant

Does not owe the Louisville Metro Housing Authority or any other Housing Authority an outstanding debt

Once a participant is found to be eligible and is briefed on the program, the participant has 120- days to secure a Good Faith Estimate from a participating lender; find a unit and sign a sales contract (with up to two 120-day extensions available).  Within those 120 days the unit size and estimated subsidy remain the same.  In addition, during the term of assistance the size of the approved unit remains the certified size regardless of changes in family composition.  Also participants remain on regular Section 8 Rental Assistance until they purchase a home.  The Louisville Metro Housing Authority requires lenders to comply with generally accepted mortgage underwriting standards.  Assistance from the Louisville Metro Housing Authority will be made directly to the appropriate bank. 

The family may purchase a home in Jefferson County (and in some cases outside of the County if certain conditions exist).  The unit must either be under construction or already existing at the time the family enters into the contract of sale.  The unit may be:

A new or existing single-family home; A single dwelling unit in a condominium or cooperative; or A manufactured home to be permanently situated on a lot owned by the family.

The Louisville Metro Housing Authority requires the review and approval of:

The Sales Contract (that includes the Housing Authority Contract Addendum)

The terms of the mortgage loan

The Housing Authority Housing Quality Standards (HQS) inspection as well as an independent ASHI-certified inspection (that is paid for by the client)

The on-going obligations for participants include:
Residence in the home

Participation in Post-Purchase Counseling and Individual Development Account for repairs and maintenance

Compliance with the terms of the mortgage

Prohibition against conveyance or transfer of the home

Compliance with all rules and regulation of Housing Choice Voucher program

Prohibition on ownership interest on a second residence

Maintain ongoing full-time employment (30 hours per week).  Except for disabled and elderly households, each household must demonstrate that each person 18 years or older is either employed full-time, or is a full-time student, or is providing care to a child or disabled person on a full-time basis.  

May not refinance or incur additional debt secured by the home without prior written approval by the Louisville Metro Housing Authority

Must allow the Louisville Metro Housing Authority to conduct annual home inspections for the first five years of assistance

Why Wait?
Enroll in Homeownership Counseling today
(Louisville Urban League at 561-6830 x122 or The Housing Partnership at 585-5451)
and start on the road to owning your own home.

Questions?  Please contact Lisa Osanka at 569-6060 x404