Will Section 8 approve a situation like this?

Question

Right now I am part owner on my grandma's house with her and there is no equity. Neither of us can afford to keep making the morgage payments. If she qualifies for Section 8 assistance would I be able to buy her out compeletly and let her rent the home with Section 8 assistance?

Answer 1

No. I have rented to Section 8 and the paperwork is extensive. There were specific questions about the relationship between the Lessee (your grandmother) and Lessor (you). If there is a relationship or she has or had a vested interest in the property, they will not issue the voucher.

Answer 2

For the project-based Section 8 program, yes, you can buy her out completely. Just because your grandmother disposes of an asset would not make her ineligible.

However, be aware that all recipients of Section 8 assistance are required to identify any assets disposed of for less than fair market value. As long as there is at least a $1,000 difference between the fair market value and the amount actually received, it will be included as an asset on her certification for two years.

Also, the owner will have to impute the asset at 2% if the difference was more than $5,000. So, combined with the existence of any current income-producing assets as well as her regular sources of income (such as Social Security, etc.), there is a possibility that she may be above the income limit and therefore ineligible. However, I don't know the specific circumstances and the only way you'll find out if she is eligible is through the applicant interview process.

Answer 3

Dealing with Section 8 in any way is the biggest clusterfuck you could get yourself into as a home owner. You could move into the garage and rent out your room to help cover the payments. Maybe get a second job to get the mortgage paid off before your grandma dies.

Answer 4

If you can't afford the mortgage payments, where in the world are you going to get the money to buy her out?