Columbus Metropolitan Housing Authority
880 E 11th Ave, Columbus OH 43211-2771

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Apply for the FSS program

The FSS program application form is available online in PDF format. You will need to download and install the free Abobe Acrobat Reader program to read it.

Complete the FSS Application and mail it to us at the address on the form.

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Section 8

Homeownership program

Family Self-Sufficiency Program participants who meet the following requirements are eligible to participate in the CMHA’s Homeownership Assistance Program:

• Must have a minimum of $3000 in their FSS escrow account or in personal savings;

• Family must be in full compliance of the Section 8 contract;

• All members of household must qualify as a first time homebuyer;

• May not have defaulted on mortgage loan;

• Family members cannot have ownership interest in another property

• One or more adult family members must be employed fulltime (no less than 30 hours per week) and have been continuously employed during the year prior to commencement of the homeownership assistance. The employment requirement does not apply to an elderly family or disabled family;

• Earned family income must be at least $10,300/year (2000hrs x minimum wage). Welfare assistance excluded. Elderly or disabled families must have yearly income of $6,500;

• Family must be free of cash assistance from welfare systems for one continuous year prior to commencement of homeownership assistance. This does not include food stamps or healthcare benefits;

• Head of household must attend an initial homeownership program orientation conducted by CMHA;

• Head of household must attend and satisfactorily complete a homebuyer education seminar, subject to FSS Program guidelines.

Homeownership down payment

A minimum down payment of at least 3% of the purchase price of which 1% must come from the family's personal resources. Resources may include but are not limited to the FSS Escrow Account, Savings Accounts, and Individual Development Accounts (IDA).

Family obligations

Prior to commencement of homeownership assistance the family must execute an Agreement of Family Obligations.

Time frame of utilization

Families will have 60 days to enter into a contract of sale. If a family is unable to enter a contract within 60 days, a 30-day extension will be granted. Extensions beyond 90 days will be reviewed on a case-by-case basis.

Financing

The participating family is responsible for obtaining financing which complies with FHA requirements. CMHA will determine affordability of financing on a case-by-case basis. Seller Financing and Balloon Payments are prohibited. Voucher funds cannot be used for financing cost. It is recommended that the family use funds in the FSS Escrow Account for homeownership related costs.

Unit eligibility

CMHA reserves the right to determine if the unit selected by the family is eligible for the Homeownership Assistance Program. The unit must be under construction or already existing at the time the family is determined to be eligible for homeownership assistance. The home selected by the family must be a one-property or single-dwelling in a condominium community.

The home selected by the family will be required to have two inspections:

• The initial inspection will be conducted by a CMHA Section 8 Inspector and must satisfy HQS requirements.

• The home selected must also be inspected by a professional independent home inspector at the family's expense.

Housing assistance payments

Homeownership Assistance payments will be made directly to the family and will be the lower of (1) the Section 8 payment standards minus the total tenant payment, or (2) the monthly homeownership expenses minus the total tenant payment. CMHA will annually reexamine the family income and composition and make appropriate adjustments to the amount of the monthly Housing Assistance Payment.

Homeownership expenses include:

• Principal and interest for initial mortgage and refinancing debt;

• Real estate taxes and public assessments;

• Mortgage insurance;

• Home insurance;

• Utility allowance from rental voucher program and CMHA's allowance for routine maintenance costs.

Maximum term of Homeownership Assistance is 15 years for a mortgage of 20 years or more. In all other cases, the maximum term is 10 years. The maximum term for assistance does not apply to an elderly or disabled family.

Move to a new home

The family must live in the home for one year before moving to another unit. A homeownership family may purchase another home through the Homeownership Assistance Program provided there is no mortgage default and the family is in compliance with the Family Obligations.

If the family received down payment assistance from the City of Columbus or another down payment assistance program additional time restrictions may apply.

Denial or termination of assistance

Termination of home ownership assistance payments shall be initiated if the family:

• Does not comply with the basic requirements of the voucher program;

• Failure to comply with Homeownership Program Family Obligations;

• Mortgage Default: If the family defaults on their home mortgage loan, they will be terminated from the Section 8 Rental Voucher and Homeownership Program, but may reapply for the Section 8 Rental Voucher Program after 3 years.

Your lender needs to know

CMHA welcomes the participation of various lending institutions to assist our participants in securing a mortgage loan. The information included in this section will help the lender understand some of the basic requirements of this program as it relates to the lending process. It is imperative that lending officers and underwriters work closely with our staff to afford the participant a positive experience in the purchase of their first home. When making a loan application for a CMHA participant please adhere to the following guidelines.

• CMHA Homeownership Assistance Program participants are required to sign a Release of Information authorizing sharing information with lenders and realtors and other associates involved in the home buying process. Please contact the Family Self-Sufficiency (FSS) Coordinators upon your initial contact with the participant. The FSS Program Coordinator will provide the following information to assist you in the application process.

  • Underwriting Section 8 Homeownership Vouchers on FHA Insured Mortgages (HUD Mortgage Letter 2001-20). The information details how "the subsidy can be considered as effective income for qualifying purposes. For underwriting purposes, the monthly subsidy may be treated as income in determining the homebuyer's qualifying ratios. The amount of this non-taxable subsidy may also be 'grossed up' by 25 per cent";

  • CMHA Subsidy Letter;

  • DAP information for qualified CMHA homeownership participants.

Financing options

Refer to section on Financing

Good faith estimate

CMHA requests that the lender forward a Good Faith Estimate during the initial process and again two days prior to closing.

Closing documents

CMHA requests that the lender forward the following documents for review by the FSS Program Coordinators and legal advisors two days prior to closing: (1) Good Faith Estimate (Final), (2) Truth and Lending Statement, and (3) Settlement Cost Statement / HUD-1.

Closing information

CMHA requests that the lender notify CMHA of closing activities 3 days prior to actual closing. Please include the following information:

• When: Date and time of closing

• Where: Title company / complete address / telephone number and contact person.

CMHA requests that the lender notify the title company that CMHA will attend closing and request copy of signed mortgage package for CMHA file.

What your real estate agent needs to know

• Eligible properties are located anywhere within Franklin County and must pass CMHA Housing Quality Standard (HQS) and an independent Home Inspection contracted and paid for by the participant. CMHA request Real Estate Agents write into purchase contract requirements affording CMHA entry to unit complete inspection within 10 working days.

• The contract must also include language that the purchaser is not required to pay any repairs that might be required by the CMHA or the independent home inspector.

• Real Estate Agent must forward MLS and copy of Purchase Contract to FSS Program Coordinator within 24 hours of entering into a purchase contract.

• Mortgage payment for selected unit must remain within voucher payment standard.

• The family income must be equal to the HUD minimum requirements of $10,300 annually.

• Elderly or disabled families must meet minimum income requirement of $6,540.

• CMHA reserves the right to determine if the unit selected by the family is eligible for the Homeownership Assistance Program. The unit must be under construction or already existing at the time the family is determined to be eligible for homeownership assistance. The home selected by the family must be a one-unit property or single dwelling in a condominium community.