Qualifying for the Section 8 Home Buying Program – All you need to know
HUD controls the section 8 home buying program, and the purpose of this program is to provide the individuals with housing choice vouchers who meet certain eligibility criteria. However, for the first-time home buying individuals, section 8 is not considered as an entitlement benefit as not everyone who qualifies receives one. For the landlords interested in renting under the section 8 program, they need to follow some protocol set by the U.S. Department of Housing and Development or HUD. These vouchers are subsidized by the government for low-income families to find appropriate housing options. Landlords still need to check out tenant verifications as HUD does not protect landlords against tenant issues.
Here we have listed down how a landlord can qualify their home for section 8 home buying program.
- Application Submitted at Local HUD Office
As a landlord, you need to fill out an application form that includes all your personal information. The necessary authorities will screen out your application, and if you are applying for first time home buying individuals, your rental rates will be screened too. The rental rates will be reviewed to ensure that they fall in line with the rates of dwellings in the area. A landlord may be required to lower the rate if the authorities find it overpriced. HUD will also look for any criminal or credit background before approval.
- Passing the Inspection Process
After applying and getting approved as a landlord by the housing authority. The next step in the qualification process of section 8 home buying program is to pass the inspection test. A home inspection will visit the rental property to make sure that it meets the standards of all the local building and safety codes. The inspection officer checks for everything like working windows to heating systems and locks to make sure everything is in working condition. The inspection process is lengthy and very detailed, so it is a good idea to hire a contractor to check for any repairs needed like plumbing or electric wiring. You need to install cooling or heating units based on that area. Some security measures require you to install safety rails outside the property. You need to double-check everything to avoid getting caught by the inspector and getting your application rejected.
- Approval and Tenant Renting
Once the inspector marks your property as safe, you can begin the renting process and may have first time home buyers as your tenants under the section 8 home buying program. After the approval, you begin to advertise under section 8, and the tenants will display their vouchers to show that they fall under the eligibility criteria. You send the voucher to HUD who pays you a monthly subsidy while the tenant pays the remaining rent.
- Expectations of HUD
The HUD expects you to keep the rental premises under check at all times if you want to keep yourself in section 8 home buying program. In case a tenant complains about any faulty cooling system or any other issue, not only the HUD will fine the landlord but also take away the eligibility of participation in the program. Your benefits are a guaranteed payment every month, so make sure you keep it operational for tenants. HUD does not screen tenants, run background checks or evictions.
The section 8 home buying program is especially useful for first time home buyers. This allows them to evaluate a home and maintain a roof over their heads.