The Homeownership Voucher Program allows current voucher holders the opportunity to own their own home by assisting with the monthly mortgage payments. Instead of applying the monthly Housing Assistance Payment (HAP) to monthly rent it is applied to a monthly mortgage payment for the home.
Opening Doors to Homeownership – How the Program Works
Step 1:Participant attends orientation to learn more about the program.
Step 2:Participant completes a program questionnaire and returns to the MHA Homeownership Coordinator
Step 3:Homeownership Coordinator reviews participant information, reviews credit and creates an individualized action plan. Participant then attends a one- on-one counseling session to review their home ownership action plan.
Step 4:Participant is assigned a homeownership advisor.
Step 3:Participant attends an approved homebuyer education and financial courses to educate themselves and to provide them with the necessary tools to improve their credit and financial situation.
Step 5:Advisor and participant work together to get the participant ready to purchase a home by working on credit, work history and financial situation. Participant must be motivated and committed and work their action plan. Participant also will:
•Attend additional counseling
•Attend additional workshops
•Establish or maintain good credit
•Follow other suggestions given by the homeownership counselor
Step 6:Participant becomes purchase ready and is now ready to apply for a mortgage loan.
Step 7:MHA and lender will determine the maximum amount of voucher assistance and other down payment assistance the participant can use to purchase a home and the maximum mortgage for which the participant qualifies. The mortgage loan is a regular mortgage loan provided to the participant by an approved mortgage lender based on the participant’s credit, income (including the Section 8 monthly assistance) and debts.
Participant must contribute at least 1% of the home sales price to transaction (usually $1000- $2000)
Remember: MHA will work with the participant to get them ready to apply for this loan.
Step 8:Participant shops for and selects a suitable home using an MHA approved Realtor.
Step 9:Two inspections will be conducted on the home. The first will be a Housing Quality Standards Inspection (HQS) conducted by MHA.
This inspection is conducted to make sure the home meets minimum housing quality standards and is safe and habitable. This inspection must be reviewed by MHA and all repairs must be completed.
The second will be a private inspection conducted by a qualified inspector of the participant’s choice. The purpose of this home inspection is to identify defects in the home and to assess the adequacy and life span of the major building components, building systems, appliances and other structural components. MHA will assist the participant in reviewing this inspection and will stipulate any repairs that must be completed.
Note:The property must be located within Cobb County.
Step 10:The lender will continue the mortgage loan process. Once the participant’s loan application has been approved by the mortgage lenders and the home has been approved by MHA, a loan closing will be scheduled.
We will invite the participant to a pre-closing counseling session to tell the participant more about the process before the scheduled closing.
Step 11:Closing is conducted
Step 12:The participant is now a homeowner ready to enjoy the benefits of owning their own home!
The participant must also adhere to the following MHA guidelines after purchasing their home:
•Post-purchase counseling and workshops to help them with budgeting, saving and maintenance
•Annual re-certification appointments to review their income and voucher assistance amounts
•Annual maintenance inspections for the first two-years after the purchase of the home
