After that period, borrowers have to foot the bill themselves. In Nashville, which was one of the program's test cities, Norris says her agency pre-screened the 3,800 area residents receiving Section 8 rental vouchers and found 1,800 of them technically qualified for the program because they made enough money and had a long enough employment history. They're in the process now of getting those people to contact them and come in for homeownership classes. The agency then hooks them up with real estate agents who help them find affordable homes and lenders who help them get loans just like other buyers. She says that's because the Section 8 income caps restrict buyers to relatively small mortgages that won' t be enough to buy homes in many locales.
Potential borrowers face other program obstacles too.
They have to cover closing costs, come up with down payments and qualify for mortgages on limited incomes. Plus, they need to obtain and pay for a home inspection to participate. HUD doesn't have any official enrollment targets, but Benoit says officials would be surprised if more than a couple thousand Section 8 aid recipients signed up over the next year because of these hurdles. That said, nonprofit groups remain optimistic the program will gain steam as more agencies start offering it and work out the kinks. This really is a radical change for a lot of housing authorities and many of them are cautious as a result.