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Housing Choice Voucher Homeownership Option
The goal of the City of Mesquite Housing Division's (MHD) Housing Choice Voucher (HCV) Homeownership Option is to preserve and improve the housing stock and create new opportunities for families to reside in Mesquite. The HCV Homeownership Option offers monthly assistance payments that contribute to the family's mortgage payment. MHD has the capacity to operate a successful HCV homeownership program as defined by regulations.
As authorized by the Housing Voucher Homeownership Final Rule published in the Federal Register on September 12, 2000, and the subsequent Department of Housing and Urban Development (HUD) changes to the program, the Housing Division will offer a Homeownership Program Option to a limited number of eligible HCV families. Interested HCV families must submit an application for the Homeownership Program option and the Housing Division will determine eligibility in accordance with the HCV Homeownership Program Option policy and ability of the family to qualify for a home mortgage.
Follow the link to learn more about the HCV Homeownership Option.
To participate in the Housing Choice Voucher Homeownership Program, requirements are:
- The family must be a current Mesquite HCV participant for a minimum of one year. New Admission applicants will not be eligible for the Homeownership Program Option.
- The family must complete an application for participation.
- The family must have an annual minimum household income of $16,000, excluding any welfare assistance (TANF) the family may be receiving. Families designated as an Elderly/Disabled Family may include Welfare assistance to meet the minimum household income requirement.
- The head of household or co-head of household must be currently employed on a full-time basis (not less than an average of 30 hour per week as defined by HUD) and have been continuously employed during the year before commencement of homeownership assistance. HUD requires that disabled families must meet a minimum income not less than the Social Security Income (SSI) benefit multiplied by twelve months).
- Family must be a first-time homebuyer as defined by HUD.
- Family may not have defaulted under any previous homeownership loans.
- Family must demonstrate that they have maintained a minimum annual average of $500.00 in a personal savings account and have made consistent deposits to the account for a period of six months prior to closing.
- The family must provide a minimum down payment of 3% of the sales price; at least 1% of the 3% down payment must come from personal resources of the family.
Complete the Homeownership Option Application now!
*Please do not submit a Homeownership Option Application unless you are a current Mesquite Housing Choice Voucher Participant. If you are not a current participant your application will automatically be discarded.
For questions please contact staff at burquhart@cityofmesquite.com
If you have questions regarding the HCV Homeownership Option please contact staff at burquhart@cityofmesquite.com.
1. I wish to purchase my first home but need help meeting the monthly mortgage and other homeownership expenses, is there a program that will help me?
The Mesquite Housing Division administers this homeownership program for eligible HCV program participants, contact staff at burquhart@cityofmesquite.com.
3. If I don’t have a rental voucher what can I do?
You must apply for a Housing Choice Voucher at your local Public Housing Agency. This program is only for HCV participants.
4. What if the waiting list at the housing agency in my area is closed and the Public Housing Authority (PHA) is not accepting applications?
You can wait until the waiting list opens up again, or you can apply in another jurisdiction where the waiting list is open. However, many PHA’s give a preference to residents in the community over non-residents, and you may be required to reside in the jurisdiction of that PHA for at least one year. You should ask the PHA in the area where you are applying about their residency preferences.
5. If I get on a waiting list, how long do I have to wait?
The waiting time varies with each PHA. You need to contact the PHA for an estimated wait time. Generally, waiting times can vary between several months to several years.
6. If I get on a waiting list for a voucher, is there any special preference for me because I want to purchase a home?No. There is no preference based on the fact that you desire to use your voucher for homeownership.
7. Are there any standards for the home to be purchased under this program?
The home must pass an initial housing quality standards inspection conducted by the PHA and an independent home inspection before the PHA may approve the purchase by the family.
For purposes of calculating the amount of financial assistance to be provided by the PHA, the monthly tenant payment is generally 30% of the family’s adjusted monthly income. For more information about how to determine total tenant payment, contact your local PHA.
11. What will I have to pay each month?
You have to pay at least the total tenant payment (approximately 30% of adjusted monthly income). However, if you purchase a home that has monthly expenses higher than those covered by the total of the financial assistance provided by the PHA together with the tenant payment (30% of income), any additional amount will have to be paid by the family. To keep families from purchasing a home that will result in a payment the family cannot afford, the PHA, may set affordability limits for their program.
12. Do families have to purchase a home in the jurisdiction where the PHA issued the voucher?
No. Families that are eligible for homeownership assistance may purchase a home outside the initial jurisdiction if the PHA in the new jurisdiction administers the homeownership voucher program and receives new families into the program. However, the family may only use the voucher to purchase a unit in an area where the family is income eligible at admission to the program.
13. How long can a family receive assistance under this program?
There is no time limit for an elderly household or a disabled family. For all other families, there is a mandatory term limit of 15 years if the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer, and for all other cases the maximum term of homeownership assistance is 10 years.
14. If I have bad credit what can I do?
First, you will meet and work closely with the Special Projects Coordinator, who will help you develop a personal plan of action and refer you to credit counseling.
15. If I am denied, can I re apply?
Yes, once you meet the requirements. The Special Projects Coordinator will explain the areas that you need to work on to become eligible.
16. I am not working right now, can I apply for the program?
No, the head of household or co-head of household must be employed full-time for at least one year prior to commencement of homeownership assistance for the family. Elderly/Disabled families are exempt from the employment requirements.
17. Is this a rent-to-own program?
No, the Homeownership Program provides assistance with mortgage expenses for Housing Choice Participants who purchase a home. You must be determined “mortgage ready”.
18. Do I have to be a Housing Choice Voucher holder in order to qualify for participation in the Homeownership Program?
Yes, you are required to be on Housing Choice Tenant-based assistance for at least one year.
19. Do I have to find my own lender?
You will have the option to go through your own resources, but you will be given a list of resources which will include a list of lenders and realtors.
Yes, it is called the Housing Choice Voucher (HCV) Homeownership Program Option. The program is for participants in the HCV program.
2. Who do I contact obtain additional information about this program?The Mesquite Housing Division administers this homeownership program for eligible HCV program participants, contact staff at burquhart@cityofmesquite.com.
3. If I don’t have a rental voucher what can I do?
You must apply for a Housing Choice Voucher at your local Public Housing Agency. This program is only for HCV participants.
4. What if the waiting list at the housing agency in my area is closed and the Public Housing Authority (PHA) is not accepting applications?
You can wait until the waiting list opens up again, or you can apply in another jurisdiction where the waiting list is open. However, many PHA’s give a preference to residents in the community over non-residents, and you may be required to reside in the jurisdiction of that PHA for at least one year. You should ask the PHA in the area where you are applying about their residency preferences.
5. If I get on a waiting list, how long do I have to wait?
The waiting time varies with each PHA. You need to contact the PHA for an estimated wait time. Generally, waiting times can vary between several months to several years.
6. If I get on a waiting list for a voucher, is there any special preference for me because I want to purchase a home?No. There is no preference based on the fact that you desire to use your voucher for homeownership.
7. Are there any standards for the home to be purchased under this program?
The home must pass an initial housing quality standards inspection conducted by the PHA and an independent home inspection before the PHA may approve the purchase by the family.
8. What are monthly homeownership expenses?
Monthly homeownership expenses include:
- Mortgage principal and interest,
- Mortgage insurance premium,
- Real estate taxes and homeowner insurance,
- PHA allowance for utilities,
- PHA allowance for routine maintenance costs,
- PHA allowance for major repairs and replacements,
- Principal and interest on debt to finance major repairs and replacements for the home, and
- Principal and interest on debt to finance costs to make the home accessible for a family member with disabilities if the PHA determines it is needed as a reasonable accommodation.
9. How much financial assistance can PHAs provide in each voucher?
The PHA uses its normal voucher program payment standard schedule to determine the amount of subsidy. The Housing Assistance Payment (HAP) is the lesser of either the payment standard minus the total tenant payment or the family’s monthly homeownership expenses minus the total tenant payment. The PHA may make the HAP payment directly to the family or to the lender.
For purposes of calculating the amount of financial assistance to be provided by the PHA, the monthly tenant payment is generally 30% of the family’s adjusted monthly income. For more information about how to determine total tenant payment, contact your local PHA.
11. What will I have to pay each month?
You have to pay at least the total tenant payment (approximately 30% of adjusted monthly income). However, if you purchase a home that has monthly expenses higher than those covered by the total of the financial assistance provided by the PHA together with the tenant payment (30% of income), any additional amount will have to be paid by the family. To keep families from purchasing a home that will result in a payment the family cannot afford, the PHA, may set affordability limits for their program.
12. Do families have to purchase a home in the jurisdiction where the PHA issued the voucher?
No. Families that are eligible for homeownership assistance may purchase a home outside the initial jurisdiction if the PHA in the new jurisdiction administers the homeownership voucher program and receives new families into the program. However, the family may only use the voucher to purchase a unit in an area where the family is income eligible at admission to the program.
13. How long can a family receive assistance under this program?
There is no time limit for an elderly household or a disabled family. For all other families, there is a mandatory term limit of 15 years if the initial mortgage incurred to finance purchase of the home has a term that is 20 years or longer, and for all other cases the maximum term of homeownership assistance is 10 years.
14. If I have bad credit what can I do?
First, you will meet and work closely with the Special Projects Coordinator, who will help you develop a personal plan of action and refer you to credit counseling.
15. If I am denied, can I re apply?
Yes, once you meet the requirements. The Special Projects Coordinator will explain the areas that you need to work on to become eligible.
16. I am not working right now, can I apply for the program?
No, the head of household or co-head of household must be employed full-time for at least one year prior to commencement of homeownership assistance for the family. Elderly/Disabled families are exempt from the employment requirements.
17. Is this a rent-to-own program?
No, the Homeownership Program provides assistance with mortgage expenses for Housing Choice Participants who purchase a home. You must be determined “mortgage ready”.
18. Do I have to be a Housing Choice Voucher holder in order to qualify for participation in the Homeownership Program?
Yes, you are required to be on Housing Choice Tenant-based assistance for at least one year.
19. Do I have to find my own lender?
You will have the option to go through your own resources, but you will be given a list of resources which will include a list of lenders and realtors.