How do I obtain financing?
The family is responsible for securing its own financing and may choose any lender willing to work with HCV Homeownership program. For the most part, lenders require a credit score of 640 or higher. Rural Development offers a subsidized mortgage with 100% financing that works well for many families. Some lenders will take your HCV assistance into consideration when determining how much a family can afford to borrow. Many financing options may not work within our payment standard restrictions if the mortgage payment is too high.

Balloon Payment Mortgages, Variable interest rates and seller financing are prohibited.The PHA has final approval as to whether the financing arrangement is affordable. The family’s portion may not exceed 40% of their adjusted family income.

The lender determines the amount of mortgage you can afford. This amount depends on several factors such as your income, your debt, the interest rate, and the PHA payment standard. Some financing options require the family to place a down payment on the home. The lender will pre-qualify your for a loan based on these factors. It is important to get pre-qualified by the lender prior to shopping for a home.

Show All Answers

1. How do I know if I am ready for homeownership?
2. What are the eligibility requirements to participate in the Voucher Homeownership Program?
3. How do I obtain financing?
4. Do I have to have good credit?
5. Are there any programs to help me save for a down payment?
6. What other costs are there?
7. Am I limited as to how much I can pay for a home?
8. Do I need to get my home inspected?
9. Am I responsible for other expenses incurred as a result of purchasing the home?
10. If interested in Homeownership, what should I do next?