Section 8

How does Section 8 Home Ownership work?

The Section 8 HomeOwnership Program is a new opportunity for Section 8 clients at the Housing Authority of Snohomish County (HASCO) and Everett Housing Authority (EHA) to use their housing voucher to help secure a purchase assistance loan to help buy their first home. Families increase their buying power by up to $35,000 with their voucher. This is not a lease-to-own program. Families buy open-market homes in Snohomish County. The program is made possible through a partnership with HomeSight, a nonprofit housing development corporation.

But I don’t know anything about buying a house!

We’re looking for responsible, working families with reasonable expectations for future income growth. Every family has something to work on before they’re ready to buy, and that’s where HomeSight comes in.

Families participate in an intensive first-time homebuyer education and financial counseling program with HomeSight, a nonprofit community development corporation and HUD certified counseling agency. HomeSight educates and underwrites buyers. HomeSight teaches families how to clean up their credit, save for their down payment (usually about $2,500), figure out what they can afford to buy and find the right home.

Classes cover predatory lending tactics, real estate documents and mortgage default prevention, budgeting, credit reports, investments and estate planning, and home, neighborhood and community maintenance.

In addition, buyers meet one-on-one for at least two hours of individualized financial counseling with HomeSight staff.

How does the voucher work?

After completing the HomeSight program, buyers get a first-mortgage from a bank with payments of about 30% of their monthly income. They get a second mortgage from HomeSight that is repaid by the voucher, usually in seven to ten years. HomeSight will lend Section 8 buyers up to $35,000 as a second mortgage.

Who is eligible?

At time of home purchase all participants in the Section 8 HomeOwnership program must:

• Be a First-Time Homebuyer or cooperative member
• Have received a Section 8 Voucher in Snohomish County for at least one year
• Have at least 12 month clean credit
• Have any bankruptcy discharged for at least two years with no derogatory since
• Have completed the HomeSight education and counseling program
• Have an annual income of at least $25,000 per year
• Be continuously employed for at least two years in the same line of work

What can we buy?

Any home on the open market in Snohomish County priced below $305,900

What can you do first?

There are other programs as well. Grants, purchase assistance products and low-interest mortgages may be available to you. HomeSight can help you sort out your options. But these are some options you can work with now.

• Call HomeSight toll free at 1-888-749-4663 or click here to visit them online to request a Snohomish County information packet
• Check the class schedule, then call Everett Community College at (425) 388-9214 and register for a 1.5 hour "HomeSight Fundamentals" class.
• If you are not already a Family Self Sufficiency participant, contact your Housing Authority.
• If you still have questions, contact Jo Clevenger at 425-293-0551.