What are the costs associated with buying a home?
Below are some resources that can help you figure out the costs associated with buying a home.
If I am currently a participant in the Housing Choice Voucher program and receive rental assistance, can I use my voucher to buy a home and receive monthly assistance in meeting homeownership expenses?
Yes, if you meet income and other eligibility requirements you can participate in Grand Prairie Housing and Neighborhood Services Homeownership Voucher Program.
If I don’t have a rental voucher what do I do?
You have to apply for a housing choice voucher.
Are there any standards for the home to be purchased under this program?
The home must pass an initial housing quality standards inspection conducted by the Grand Prairie Housing and Neighborhood Services and an independent home inspection before GPHNS may approve the purchase by the family.
What families are eligible to apply for homeownership vouchers?
Families must meet these requirements:
- First-time homeowner or cooperative member.
- No family member has owned or had ownership interest in their residence for at least three years.
- Except for cooperative members, no member of the family has any ownership interest in any residential property.
- Minimum income requirement. Except in the case of disabled families, the qualified annual income of the adult family members who will own the home must not be less than the Federal minimum hourly wage multiplied by 2,000 hours. For disabled families, the qualified annual income of the adult family members who will own the home must not be less than the monthly Federal Supplemental Security Income (SSI) benefit for an individual living alone multiplied by 12. The PHA may also establish a higher minimum income requirement for either or both types of families. Except in the case of an elderly or disabled family, welfare assistance is not counted in determining whether the family meets the minimum income requirement.
- Employment requirement. Except in the case of elderly and disabled families, one or more adults in the family who will own the home is currently employed on a full-time basis and has been continuously employed on a full-time basis for at least one year before commencement of homeownership assistance.
- Homeownership counseling. View HUD Approved Housing Counseling Agencies
What are monthly homeownership expenses?
Monthly homeownership expenses include:
- Mortgage principal and interest,
- Mortgage insurance premium,
- Real estate taxes and homeowner insurance,
- Principal and interest on debt to finance major repairs and replacements for the home, and
- Principal and interest on debt to finance costs to make the home accessible for a family member with disabilities if the PHA determines it is needed as a reasonable accommodation.
How much financial assistance can Grand Prairie Housing and Neighborhood Services provide in each voucher?
GPHNS uses its normal voucher program payment standard schedule to determine the amount of subsidy. The housing assistance payment (HAP) is the lesser of either the payment standard minus the total tenant payment or the family’s monthly homeownership expenses minus the total tenant payment. GPHNS may make the HAP payment directly to the family or to the lender.
What is the total monthly tenant payment?
For purposes of calculating the amount of financial assistance to be provided by Grand Prairie Housing and Neighborhood Services, the monthly tenant payment is generally 30% of the family’s adjusted monthly income. For more information about how to determine total tenant payment contact us.
What do I have to pay each month?
You have to pay at least the total tenant payment (approximately 30% of adjusted monthly income). However, if you purchase a home that has monthly expenses higher than those covered by the total of the financial assistance provided by Grand Prairie Housing and Neighborhood Services together with the tenant payment (30% of income), any additional amount will have to be paid by the family. To keep families from purchasing a home that will result in a payment the family cannot afford, GPHNS may set affordability limits for their program.
Do families have to purchase a home in the jurisdiction where the housing authority issued the voucher?
No. Families that are eligible for homeownership assistance may purchase a home outside the initial jurisdiction if the housing authority in the new jurisdiction administers the homeownership voucher program and receives new families into the program. However, the family may only use the voucher to purchase a unit in an area where the family is income eligible at admission to the program.
How long can a family receive assistance under this program?
There is no time limit for an elderly household or a disabled family. For all other families, there is a mandatory term limit of 15 years if the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer, and for all other cases the maximum term of homeownership assistance is 10 years.