Lease purchase and Section 8

[jaydub 0]

Hey everybody,

Just put a house up for Lease purchase and the first person to call was a potential T/B who said my monthly rent was within her range, then she told me she was a section 8 renter and asked if I can do a L/O with a Section 8 renter. I didn't have the answer. Can I and if I can how do I go about this? I know of the program but I am not that familiar with it.

I appreciate any help.

JayDub

[Mr.B 0]

Jay I think that is a government funded project that helps low income people afford houseing. You must first have your "Rental" Section 8 quailifed. If she is looking to purchase this home you may just want to ask her if she will be able to make the full mortgage payment on her own if she can even qualify.

 

Then again, this may be completely inacurrate. See signature.

 

~Mr.B

[MichaelC 160]

Section 8 is exactly what Mr.B has said: government subsidized housing for folks who are struggling financially. Which, of course, leads to the obvious question: how can someone in this program afford any option consideration to pay you now, and will they be able to qualify for a mortgage within the next year?

Personally, I steer away from Section 8, but others seem to think it's a fine way to go.

[jaydub 0]

Thanks guys, I knew it was a goverment program to help low income renters but I didn't know if it extended beyond that. She never called back anyway.

[Kimberly 0]

There is a way Section 8 vouchers can be used for house payments, but I'm not familiar with it. You might try calling your local "Housing Authority," i.e. whoever administers the Section 8 program. I'm guessing it would need to be a no down or very low down situation for it to work.

[<Steve> 82]

I had a Section8 tenant for a straight rental unit. The Housing Authority pays a percentage of the rent, while the tenant pays the rest. Each year the housing authority pays less and less until the tenant is on their own.

 

What is nice is you can get top market rent and increase rents every year. I think now in my area you have to provide comps when raising the rent. You always receive the rent on time on or before the 1st of the month.

 

Qualifying is simple, your local housing authority inspects the property to make sure it is fit to live in (health, safety & welfare) and away you go. The tenant has a lease with the landlord, and the landlord, housing authority and tenant have a second lease. If the tenant goofs up, the landlord has full authority to evict under the state laws.

 

 

The section8 tenant I had was for 4 years. When her percentage to pay was almost at 100% she had to move, couldn't aford it. She didn't pay the water bill when she moved, but other than that was a great tenant.

 

Two or three years later, to my surprise, I received a check in the mail for $90 from this tenant. She was paying me back for the water bill. I couldn't belive it. So I called and thanked her. She had pulled herself up and got off welfare with her to kids and now was looking for a house to buy. As it so happened I had a house vacant which I owned and was looking for a tenant/buyer. You guessed it, I leased optioned the house to her.

 

Funny how things work out.

 

<S>

[-Tony- 0]

Great story Steve