I bought in NYS, have a lot of experience, What do you want to know?, do you currently have sec 8? I bought a condo, but I never heard that there should be a problem with any other types, & I don't see why
ארבעטער האט געשריבן:
I bought in NYS, have a lot of experience, What do you want to know?, do you currently have sec 8? I bought a condo, but I never heard that there should be a problem with any other types, & I don't see why
Section 8 has a program called “Homeownership Program”;
The purpose of this program is, for people that have section 8, to assist them to get on their own & stop to be dependent on the government;
It is only available in upstate, not in the City (I don’t know if it is available in NJ);
The 2 main cons: 1. You can only receive a very small mortgage (as explained further); So if you have no way to overcome this, then it’s not for you; 2. After 15 years you will stop to receive section 8 3.
How it works:
If you currently have section 8 you can tell them that you are interesting in buying a house, & you will start the process with them, & then you can start to look for a house, You can buy for any price, as long as you can show for sec. 8 (& for the bank) from where you have the rest of the money; You will apply for a mortgage as usual (however there are only a few banks that are willing to give mortgages with this program, I think M&T is one of them), You need to have good credit same as a regular mortgage
You will only be able to get a small mortgage, depends on how many children you have & in which area you are buying & from where you have sec 8 If you have 5 children & you are buying in KJ & you have section 8 from Middletown (PathStone), then the max mortgage is $180,000 I think by 7 children it will get more close to the real prices in KJ
Once you bought the house, section 8 will continue to send the same amount what you got until now, As long as you qualify for sec 8 (same as rent) However instead of sending it to your landlord, they will put it in your bank account, & you will pay the mortgage
After 15 years they will stop to make the payments & you will fall down from sec 8 PS. This program is not old 15 years yet, so no one knows what will really happen after the 15 years, Most people believe that they will never throw you down from sec 8 because you will not be able to afford the mortgage payment after that;
The process:
1. You need to earn $25,000 annually for 2 years (You can start the process with them even within the 2 years, after 6 months) a. This is in Middletown (PathStone), In Village of KJ you need only a few months of history b. For this 2 years your income will be 25,000, so if it was less until now, then you will now receive less sec 8 & SNAP… c. If you start to earn less after moving in, you will get more sec 8 2. They will ask you to come to them for a small class where (I think 30 minutes) where they explain the process & will get enrolled in the program a. This class they make like once a month 3. Then you will have to take another class where they explain how to keep your house & how to get approved for a mortgage a. This is a long class (I think 5 hours) b. They make it like 2/3 times a year c. There is some fee for this class (I think 100.00) 4. Then you can tell them that you found a house 5. You will have to keep them updated with each step of the process, like signing contract, applying for the mortgage… 6. They will want a independent inspection of the house (besides the regular appraisal) 7. They will come down to the closing (They don’t do anything, they just have to sit there)
The rest of the money:
You will always have to come up with 20% of the purchase prices (plus the closing cost), because the bank only gives mortgages for 80% of the purchase prices, & if you buy a expensive house then you will need to come up with even more money & also show for sec 8 & for the bank from where you have it;
The only way to do this is with a gift A gift needs to be from your close relative (like father, zaide, shwuger, brother, Better if they have the same last name as yours) The money what he will give you needs to be in his bank account for at least 1 month before you apply for the mortgage, so it should show on his bank statement in the beginning balance (because if they see that he deposited it recently then something is fishy)
You will have to bring to the closing a certified check from there bank account.
A gift is taxable (you & your father need to pay taxes for it); However there are some amount that is not taxable, it changes every year I think last year it was 7000 a year So for example, if your father gives you a gift, then he will be able to give you 28000 • Your father for you 7000 • Your father for your wife 7000 • Your mother for you 7000 • Your mother for your wife 7000
If you buy a more expensive house then you can ask the seller to give it for you affordable with a low contract price, Most builders will not want to do it, because it will make it difficult for other buyers in the same project to get a mortgage.
Where to go for help:
• You can contact your section 8 agency to get information for this program. • R’ Moshe Laser Neuman (Village of KJ sec 8 dept) is familiar with this • His eidem R’ Yoel Guttman have experience with Middletown sec 8 (you can call the village & ask for a appointment with him) • R’ Mordche Friedman (GFI mortgage broker in business center); He have a lot of experience of doing this type of mortgages with Middletown, He charges an extra fee for such a mortgage • You can contact me in ishi
This is for now, I have a lot more of tips to have, maybe another time If someone can translate it to Yiddish, he will be m’mezacki HuRabim
No, Technically it can cost a million dollars, but you need to have 820,000 cash, plus the closing cost, & you need to show for sec 8 & the bank from where you have it.
But it's best that it should not cost less then 225000, so you can get the max mortgage of 180000
All this is with an example of a mortgage of 180000, but the max mortgage what you can get depends on a few things, The number of children you have Where you buy the house Which agency you have section 8
שאלה: קען איך אפקויפן מיין יעצטיגע רענטל אפארטמענט, אדער דארף עס זיין א הויז אין וואס איך מוף יעצט אריין?
אויב קום איך פון די סיטי קען איך טרענספערן גראד צו דעם פראגראם, אדער דארף איך קודם טרענספערן צו א רענטל (אויף ווי לאנג?) אין ערשט נאכדעם אנהייבן די פראסעס?
Why do you answer with confidence NO when you don't know anything about this?
This is a well known program that exists in NY that you can buy a house with sec. 8, it is called home ownership program. Yes, it is complicated but many have done it .
A person interested in this program needs to sit with the sec 8 department and go through the whole process in detail. They will guide you through the long tedious process and try to help you. For KJ residents it is either the kj village or the pathstone Corp. From Middletown.
It is good to be aware of one extremely beneficial program called FSS, standing for family self sufficient funds. This is the only program that helps a person earn more and loose less. Basically if you are low income and fear to earn more because you are going to loose you sec. 8. The gov. Tells you, go 'work more and earn more' and the amount you are going to loose because of the higher income we are going to put into a savings account. You can take out the money when you reach a certain goal (3 goals). This helped many poeple who wanted to buy a house with sec 8 home ownership to overcome the problem of 'working more and earn more' in order to be qualified for a mortgage.