HUD: Usage Up for Homeownership Vouchers

Over 5,000 public housing residents have used a special voucher program to purchase a home since 1999, according to the Department of Housing and Urban Development.The HUD program allows Section 8 renters to use their vouchers to meet monthly mortgage payments. A new study of the voucher homeownership program reported that foreclosures are rare and delinquencies infrequent, even though the average purchase loan-to-value ratio is 99.7%. The study also found that more public housing authorities are participating in the VHO program and home purchases are accelerating. In early 2004, roughly 2,000 homes had been purchased through the voucher program. By December 2005, the number of purchases had doubled to more than 4,000. Most VHO purchasers have access to downpayment assistance, as well as below-market or forgivable second mortgages.