Housing Choice Voucher Homeownership Program

Below is general information about the federal program that allows the HAP (Housing Assistance Payment) Subsidy to be used for a mortgage payment instead of rental assistance.

Eligibility Requirements:

• Have a HCV Rental Voucher for at least one year; with no debts owed to MHA (or other HA)
• Head of Household or Responsible Adult must be employed for minimum of one year at 30 hrs/week (unless Elderly/Disabled)
• Must be first time homebuyer
• Must participate in HUD certified Homeownership Counseling Course- see list of courses on our webpage
• Must participate in a MHA HCV Homeownership Orientation with MHA staff - see contact below

Minimum Income Requirements: 

• The family must have a gross annual income equal to the Federal minimum wage multiplied by 2000, based on the income of adult family members who will own the home
• For disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone, multiplied by 12
• Welfare assistance is not accepted as income, but would be used in calculating rent
• Must have at least enough for DOWN PAYMENT and CLOSING costs (closing costs are approximately 6% of purchase price;  20% of the purchase price for down & closing is realistic )

Special Exceptions for Elderly/Disabled Households

• No time limits of assistance – will continue for the life of mortgage if eligibility continues
• No minimum work requirements
• Elderly/Disabled applicants still need to secure their own financing and to have adequate funds for down payment & closing costs
• This most realistically works for households who receive inheritances, special needs trusts, or have a large lump sum for down payment

Aspects to Consider:

• Household must qualify and secure their own financing from a bank (MHA will refer you to a lender familiar with the program)
• Must secure a 30 year FIXED Rate loan – no Adjustable Rate Mortgages
• Household would need to find a unit that they could afford (a below market rate unit)
• The assistance from the Housing Authority lasts for a maximum of 15 years (except elderly /disabled)
• Program is essentially established for communities where housing is more affordable – in the $100k -$200k range- very difficult in Marin & Bay Area; Program may be used with the BMR Lottery Program

How it actually works – THE FORMULA:



• Total housing costs (mortgage, prop. taxes, homeownership dues, insurance) should equal payment standard for voucher size held
• If housing costs exceed payment standard, Marin Housing will allow household to pay maximum of 40% of monthly adjusted gross income out of pocket