Benefits Of Tenant Participation In A Section 8 Voucher Plan
The US Department of Housing and Urban Development (HUD) offers many section 8 benefits for tenants. A section 8 benefit is usually a financial assistance program that can help low-income families afford their housing. This includes low and fixed rate financing, mortgage refinancing, foreclosure prevention assistance, and much more. Below is a list of some of the most popular section 8 benefits:
o Benefit number one – The HUD offers many great options for low income homeowners. Section 8 provides rental assistance to tenants with an income that is considered low or middle class. Participants in this program can receive their own rental home free and utilize a “rental option voucher” to pay rent each month. The voucher can be traded in for free housing if the resident moves out of the area or interest rate on the loan decreases.
o Benefit number two – The second most popular section 8 program offered by HUD is the ability of the landlord to deduct interest from the tenant’s monthly rent and deposit it into his or her account. A good landlord will ask the tenant to designate which bank account the money will go into. The landlord may also choose to take a tax deduction for this interest. Another advantage to this type of arrangement is that the tenant is never required to pay this interest along with taxes. In other words, the tenant is paying nothing for the benefit but the landlord pays everything.
o Benefit number three – Another great part of the section 8 program is that the landlord and tenant each have the ability to negotiate a new lease. If the previous lease was voided for non-payment of rent, the tenant can choose to go back to the beginning of the lease. This new agreement can last as long as five years. Tenants can also choose to go back to the same property for a fresh start at a different rent amount.
o Benefit number four – Tenants who are qualified under the Section 8 benefits can use the remaining funds to purchase their own home. The housing vouchers used for the purchase of the house can either be used for a down payment or the total cost of the home. Section 8 housing vouchers are a great option for people who are not able to obtain assistance from federal housing authorities. These vouchers can also be used for repairs on the home. Many people mistakenly believe that they cannot use these vouchers for repairs because they are only available to people who receive federal housing grants.
Tenants who qualify for the section 8 program are required to have a low-income and to stay in their property for at least three years. Another benefit of the program is that it provides tenants with the option of building their own affordable housing. To do so, the tenants will need to apply for a low-income certificate. Once they have received the certificate, they will be able to build their affordable housing on their own.
Tenants who do not own their rent-paying property can still benefit from the program. A rent supplement, which is a percentage of the national average income of the tenant, will be added onto the rent of the property. Even if the tenant does not own the property, he or she can still receive rent supplement money. The best way to find out what is best for you as an applicant is to talk to an experienced real estate lawyer who can help you find out what you qualify for, as well as how much of this rent you can expect to receive each month.
One benefit of section 8 participation is that a landlord will not be required to do a background check on his prospective tenant. In case there is a problem, the landlord can end up paying a fine, which is included in the benefits of the program. Another benefit of the program is that once you have become a landlord, you will not be required to reapply every two years. As long as you continue to follow the rules set forth in your contract, you will be allowed to maintain your current lease term. However, if you decide to change your rental housing agreement, you will need to apply again.