Your Section 8 Voucher Can Buy a Home—Here’s How with CHFA

A warm welcome: Connecticut's CHFA program opens the door to homeownership for Section 8 recipients.

For many low-income families in Connecticut, the dream of owning a home can feel out of reach—especially for those currently receiving Section 8 rental assistance. However, the Connecticut Housing Finance Authority (CHFA) offers a powerful pathway to ownership through its Section 8 Housing Choice Voucher (HCV) Homeownership Program. This initiative aims to turn the dream of homeownership into reality by providing financial tools and guidance for eligible individuals and families.

Understanding the Program

CHFA’s Section 8 Homeownership Program allows recipients of Housing Choice Vouchers to use their vouchers toward mortgage payments instead of rent. This transition from renting to owning empowers families with the stability and wealth-building potential of homeownership.

Participants must be working with a local Public Housing Authority (PHA) that offers a voucher homeownership option. CHFA then steps in with financial assistance and lending options to support the purchase.

Eligibility Criteria

To qualify for CHFA’s Section 8 Homeownership Program in Connecticut, applicants must:

• Currently receive Section 8 Housing Choice Voucher assistance from a participating housing authority.

• Be a first-time homebuyer (defined as not having owned a home in the past three years), or a qualified displaced homemaker or single parent.

• Meet minimum income and credit standards, which vary slightly depending on the size of the household and employment status.

• Have a minimum of one year of continuous full-time employment (unless disabled or elderly).

• Complete a CHFA-approved homebuyer education course, which prepares buyers for the responsibilities of homeownership.

Financial Assistance Offered

CHFA offers several forms of support to make homeownership attainable:

• Low-interest rate first mortgages for qualifying buyers.

• Down payment assistance through CHFA’s Downpayment Assistance Program (DAP), offering a reduced-rate second mortgage to cover down payment and closing costs.

• No minimum borrower contribution required for many borrowers using DAP.

• Some housing authorities may also offer additional subsidies to help reduce monthly housing costs in the initial years of homeownership.

Property and Loan Specifications

Eligible homes must be the buyer's primary residence and include:

• Single-family homes, townhomes, and units in Planned Unit Developments (PUDs).

• Condominiums that are FHA-approved or Fannie Mae-eligible.

• Two- to four-family properties, provided the property has been used for residential purposes for at least five years before purchase.

Most loans are structured as 30-year fixed-rate mortgages, offering stability and predictable payments. The buyer must occupy the home and cannot rent it out while receiving voucher assistance.

Application Process

Here’s how to get started:

1. Connect with a Participating Housing Authority: Ensure your PHA offers a voucher homeownership option.

2. Take a Homebuyer Education Course: CHFA requires completion of an approved educational program.

3. Meet with a CHFA-Participating Lender: These professionals guide you through the mortgage application and help determine what programs you qualify for. We would be happy to recommend a few CHFA-Participating Lenders.

4. Submit Required Documents: Provide income verification, credit reports, and housing history.

5. Search for a Home: With a pre-approval letter in hand, begin house hunting within your price range (Of course we could help with this too).

6. Close and Move In: Once all steps are complete and the loan is approved, you’ll be ready to sign, close, and move into your new home.

Advantages of the Program

This program offers more than just housing—it provides a foundation for lasting financial security. Benefits include:

• Equity Building: Each mortgage payment builds equity in your property.

• Stability: Homeownership offers long-term residence stability compared to renting.

• Affordability: Subsidized payments and down payment assistance make buying realistic for low-income families.

• Education and Support: Buyers gain financial literacy and confidence through mandatory courses.

Conclusion

Owning a home is a milestone many believe to be out of reach while receiving Section 8 assistance. Thanks to CHFA’s Section 8 Homeownership Program, Connecticut residents have a clear, structured path to turn this goal into a reality.

Note: This article may not be updated after program guidelines change.

Call to Action

If you're a Section 8 recipient dreaming of homeownership, CHFA's program might be your pathway. Contact us below to explore your options and take the first step toward owning your home.