HOUSING CHOICE VOUCHER HOMEOWNERSHIP OPTION PROGRAM
Go from renting to owning your own home!
Housing Authority of the City of Old Town (HACOT) has a new program to help low income families who are eligible for the United States Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (HCV) become homeowners. This program is the Homeownership Option Program (HOP). Under this program families may choose a house for purchase anywhere in the HACOT service area, instead of using their voucher for rental assistance.
Who is Eligible?
- Be a participant on the Housing Choice Voucher Program for a minimum of 12 months.
- Be first time home buyers, displaced homeowners, or have not owned a home during the last three years.
- Satisfy the minimum income requirement.
- Satisfy the minimum employment requirement.
- Must not have defaulted on a mortgage securing debt.
- Must not have present ownership interest in a residence at the commencement of home ownership assistance.
- Complete all necessary homeownership counseling sessions; counseling sessions include the following:
- Preparing for homeownership
- Shopping for a home
- Obtaining a mortgage
- Closing the loan
- Life as a successful homeowner
- Must be financially capable to qualify for HACOT approved financing.
Houses proposed for purchase must pass HUD Housing Quality Standards. A family desiring to buy a home through this program must have the property inspected, at the family's expense, by an independent home inspector selected by the family. Home inspections must include the home's major systems and components, interior and exterior, roofing, plumbing, electrical and heating systems and lead based paint.
Monthly costs of owning and maintaining the home will be calculated to help determine its eligibility for purchase and the amount of mortgage subsidy. Some expenses included in the cost are mortgage principal and interest, real estate taxes, private mortgage insurance, homeowners insurance, maintenance allowance, allowance for repairs and replacement of major systems, utilities, and any condominium or homeowners association fees.
Steps to Owning Your Own Home
- Complete a HOP Application and be determined eligible to participate.
- Attend a HOP orientation session.
- Participate in an approved homebuyer education course.
- Receive a pre-approval from a mortgage lender based upon your Housing Choice Voucher Program estimated subsidy.
- Find a house to purchase in the HACOT service area and negotiate a satisfactory price with the seller.
- Have your purchase agreement approved by HACOT.
- You and HACOT will both have separate home inspections performed on the property.
- You comply with all terms set forth by your mortgage lender.
- You make settlement on the property and begin making payments on the mortgage.
- Your housing assistance subsidy is converted to assistance with your mortgage payments for up to 15 years, or an unlimited term for elderly and/or disabled.
HOP Application & Handouts
Please Contact the Housing Authority Office for More Information.