For those who are unaware of it,
in the past couple of years
a new housing program has been
started within the Section 8
system that is worth knowing
about to Veterans.

The regular Section 8 Rental
voucher can optionally be
converted over into a
Homeownership Voucher. This
is not for everyone and the
process is challenging and will
require your patience. But
for those who can tough it
out and comply with the system,
it's another way to own your
own place if a regular VA
mortgage is out of your reach.

There may also be geographic
restrictions on the program
so check at the Public Housing
Authority that serves your area.

The way this works is easy to
understand. If you either qualify
to receive, or are otherwise
already on the Section 8 Rental
Voucher program for your housing,
the voucher itself can be
changed over into a homeownership
voucher which essentially works
the same way.

If they tell you that you have
to sit on a waiting list, then
do it because it is worth chasing.
Veterans receive extra points as
do the disabled or elderly in
the Section 8 system so this
will actually bump you up further
on the waiting list.

The counselors will call you in
and start you on your program
requirements which may include
a homeownership training course.
They'll tell you which banks to
start your credit qualifying with.
The banks will hook you into
local grant programs towards your
mortgage and down payment, and
usually a local non-profit will
provide you with a pro bono closing
lawyer to oversee the transition
to your closing.

When the voucher is finally converted,
instead of the Section 8 payments
going to a landlord, they go to
your mortgage company. You are required
to pay your own water bill, utilities,
and association dues if you purchase
a condominium or co-op. Sec. 8 will
increase and flex to absorb your
mortgage and taxes.

Check your tax assessors office for
qualifying on reductions on your
tax burden. Here, they have exemptions
for Veterans, Disabled, Seniors, and
Low Income as long as you occupy your
residence. Bank grant programs will
also usually have a 10-year residency
requirement too. These programs
are set up to promote owner-occupancy
and rebuild neighborhoods. Go for it!
You've gotta live somewhere so
who cares if it's in one place for
awhile!

Normally Section 8 will require your
housing choice to be in "move in"
condition, so major league rehabs
are out of the question. However,
I was able to get a dirt-cheap
condominium that really needed work
but in all other ways is "livable",
and I am rennovating the place
myself on nickels and dimes each
month.

If you are clever with tools, painting,
and rennovating and can persevere
on a monthly basis to keep your
projects moving forward, then it's
a definite escape route out of
poverty and into owning your own
place. The sum of grants that I had
qualified paid for my down payment
and half my mortgage leaving the
remainder amount less than the price
of a house trailer in the South.
Whoa !!

If you normally do well in managing
your own affairs without constant
supervision, and can keep your
credit in good shape, then the
Section 8 Homeownership Program
may be a good choice for you to make.

Even if your credit was completely
crapped out by sudden disability
or overseas military duty, not
to worry. Just get in the program,
explain this to the counselors,
and do what they tell you because
they can still overcome certain
minor obstacles in the credit
arena. I bankrupted over sudden
and unexpected disability, but
my recovery period for that was
expired and I was able to start
over, since in all other ways
while renting, I had a stellar
payment record.

Plan for bureacracy, faxing papers
x 10, and the rat chase to go
here-go there. But it's a small
price to pay if you obtain the
brass ring at the end of it all.

One more thing. If a legitimate
emergency occurs that completely
trashes your ability to continue
homeownership and independent
living, especially in the case
of the disabled or elderly where
perhaps a stroke or something
changes your life circumstances,
the Homeownership Voucher can
be converted back to a Rental
Voucher and you are still protected.
There are some penalties for
that, and this program feature
cannot be invoked casually. But
in genuine emergency situations,
it is a safety net that you
would want to know about. I
was nervous myself until I heard
that, and it was the very thing
that made me go ahead.

Start by going to your Public
Housing Authority Office and
say "I heard about the Home
Ownership program and I'm here
to see if I can qualify and if
you can get me started".

This is especially of interest
to single or married returning
combat veterans who have to
recover from duty hardship.
Stick it out and you will
succeed.

This message has been edited. Last edited by: McClellanVet,