Homeownership Vouchers

In order to apply for the Homeownership Voucher Program, you must be a qualified applicant participating in the Housing Choice Voucher program (section 8).

 

If I wish to purchase my first home but need help meeting the monthly mortgage and other homeownership expenses, is there a program that will help me? Yes! The Grand Prairie Homeownership Voucher Program permits eligible participants the option of purchasing a home with housing assistance.

Program Highlights

  • The program assists first-time homebuyers with their monthly homeownership payments.
  • The home must pass an initial housing quality standards (HQS) inspection conducted by Grand Prairie Housing and Neighborhood Services as well as an independent home inspection.
  • A typical family may be eligible for mortgage payment assistance for up to 15 years. However, qualifying elderly and disabled families may also receive assistance for up to 30 years.
  • All participants will be subject to annual re-certification, which includes verification of income and other eligibility factors (similar to the rental assistance program).

Eligibility

  • Must be a participant of Grand Prairie Housing Choice Vouchers Program (Section 8)
  • Must be a voucher holder for at least 1 year
  • Must be a first-time homebuyer
  • Meet Federal minimum hourly wage guidelines
  • Work a minimum of 30 hours a week (unless over 62 or disabled receiving SSI)
  • Be continuously employed for 1 year
  • Be pre-approved by a mortgage lender

The Home Purchasing Process

Once Grand Prairie Housing and Neighborhood Services (GPHNS) determines that a Housing Choice Voucher recipient is eligible to participate in the program, the family must complete the following steps.

Step 1: Homeownership Education

Complete a Homeownership Education class prior to purchasing a home.

 

Step 2: Find HUD-approved lender

Find a HUD approved lender who can pre-approve you for a mortgage loan.

Step 3: Notify Grand Prairie Housing and Neighborhood Services

Once pre-approved, email skalkreuth@gptx.org

Step 4: Request the lender send information to Grand Prairie Housing and Neighborhood Services

Have lender email the 1003 and pre-approval to skalkreuth@gptx.org.

Step 5: Search for a home!

Search for a home based on your pre-approval amount approved by lender and accepted by GPHNS.

Step 6: Sales Contract

Enter into a sales contract and finalize the home purchase.

Step 7: Inspect home

Obtain a GPHNS Housing Quality Standards inspection as well as an independent professional inspection of the home. 

Step 8: Appraisal

Have the home appraised to assess Market Value.

Step 9: Verify Homeownership 

Before closing, contact GPHNS to verify that assistance can be rendered.

Frequently Asked Questions

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:

  1. Mortgage principal and interest,
  2. Mortgage insurance premium,
  3. Real estate taxes and homeowner insurance,
  4. Principal and interest on debt to finance major repairs and replacements for the home, and
  5. 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.