Homeownership Program Requirements

The Homeownership program allows families to use their Housing Choice Voucher to purchase a home. The homeownership option is used to assist a family residing in a home purchased and owned by one or more members of the family. A family assisted under this option must be an existing participant in the Housing Choice Voucher program for atleast 1 year.

In order to participate in the Homeownership Program you must meet the following requirements:

The family must have been admitted to the Housing Choice Voucher program.

The family must qualify as a first-time homeowner, or may be a cooperative member.

The family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by Spartanburg Housing. 

The family must meet the Federal minimum income requirement. The family must have a gross annual income equal to the Federal minimum wage multiplied by 2000, based on the income of adult family members who will own the home. Spartanburg Housing may establish a higher income standard for families. However, a family that meets the federal minimum income requirement (but not the Spartanburg Housing's requirement) will be considered to meet the minimum income requirement if it can demonstrate that it has been pre-qualified or pre-approved for financing that is sufficient to purchase an eligible unit.

For disabled families, the minimum income requirement is equal to the current SSI monthly payment for an individual living alone, multiplied by 12.

For elderly or disabled families, welfare assistance payments for adult family members who will own the home will be included in determining whether the family meets the minimum income requirement. It will not be included for other families.

The family must satisfy the employment requirements by demonstrating that one or more adult members of the family who will own the home at commencement of homeownership assistance is currently employed on a full-time basis (the term 'full-time employment' means not less than an average of 30 hours per week); and has been continuously so employed during the year before commencement of homeownership assistance for the family.

The employment requirement does not apply to elderly and disabled families. In addition, if a family, other than an elderly or disabled family includes a person with disabilities, Spartanburg Housing must grant an exemption from the employment requirement if Spartanburg Housing determines that it is needed as a reasonable accommodation.

The family has not defaulted on a mortgage securing debt to purchase a home under the homeownership option.

Before commencement of homeownership assistance for a family, the family must attend and satisfactorily complete the pre-assistance homeownership and housing counseling program required by Spartanburg Housing.

FINANCING: Families selected to participant in the HCV Homeownership Program must secure their own financing.

The financing package may include other programs designed to assist low-income homebuyers, such as HOME or the Federal Home Loan Bank Affordable Housing Program. Notwithstanding other funding that may be available for down payment assistance, the family will be required to invest a minimum of $500 of their own funds in the purchase.

Financing for the purchase of a home under this Homeownership Program must:

Be provided, insured, or guaranteed by the state or federal government.

Comply with secondary mortgage market underwriting requirements; or
Comply with generally accepted private sector underwriting standards.
Only fixed rate mortgages of at least 15 years with interest rates no greater than one percent above the local average for FHA, VA or conventional A-Note mortgages will be approved. Loans with the following provisions will not be approved:

• loans with balloon payment,
• adjustable rate mortgages,
• prepayment penalties,
• more than two discounted points,
• tax service fee at level less than or equal to current market norm for A-note mortgages,
• loan processing fee at levels less than or equal to current market norm for A-note mortgages
• underwriting fee at level less than or equal to current market norm for A-note mortgages.

Homeownership Participant must submit the required documents prior to receiving assistance:

Inspection
Spartanburg Housing will not commence monthly homeownership assistance payments for a family until:
• Spartanburg Housing has inspected the unit and has determined that the unit passes HQS.
• An independent professional inspector selected by and paid for by the family must also inspect the unit. The independent inspection must cover major building systems and components, including foundation and structure, housing interior and exterior, and the roofing, plumbing, electrical, and heating systems. The independent inspector must be qualified to report on property conditions, including major building systems and components.
•Spartanburg Housing will disapprove a unit for assistance based on information in the independent inspector's report, even if the unit was found to comply with HQS.

Contract of Sale
Before commencement of monthly homeownership assistance payments:
• A member or members of the family must enter into a contract of sale with the seller of the unit to be acquired by the family. The family must give Spartanburg Housing a copy of the contract of sale. The contract of sale must:
Specify the price and other terms of sale by the seller to the purchaser;
Provide that the purchaser will arrange for a pre-purchase inspection of the dwelling unit by an independent inspector selected by the purchaser;
Provide that the purchaser is not obligated to purchase the unit unless the inspection is satisfactory to the purchaser;
Provide that the purchaser is not obligated to pay for any necessary repairs; and
Contain a certification from the seller that the seller has not been debarred, suspended, or subject to a limited denial of participation under CFR part 24.

If you are interested in participating in the Homeownership Program, please contact homeownership@spartanburghousing.org.