Home Ownership Option

About the Home Ownership Option

The U.S. Department of Housing & Urban Development has instituted regulations that allow Section 8 Agencies to assist families to purchase a home utilizing tenant based voucher payments as a supplement to owner qualified mortgage payments.  The City of Paducah has opted to offer a homeownership option to up 50 qualified Section 8 participants who wish to become homeowners.  Current Section 8 homeownership participants are eligible to select any qualified home on the open market as long as the purchase price is within reasonable mortgage criteria according to income. 

Click here to learn more about the benefits of being a homeowner.

 Application & Purchase Steps

  • Complete pre-application form and return to Section 8 Office on second floor of City Hall at 300 South 5th Street
  • Notification will be sent for you to attend mandatory housing counseling
  • Counseling assessment will determine eligibility
  • Credit-worthy applicants will choose and apply at bank or mortgage company for mortgage pre-approval
  • After mortgage pre-approval, applicant searches for home using approved amount and calculated Section 8 voucher assistance amount
  • Home inspected by Section 8 and independent inspection service
  • Mortgage prepared; homeowner pays mortgage approval amount, Section 8 pays voucher payment to 2nd mortgage holder for maximum 15 years (no limit if disabled or elderly)
  • Yearly Section 8 inspections and re-verification of income mandatory

Participant Qualifications

  • Must be an active City of Paducah Section 8 participant for at least 12 months in good standing 
  • Must be "first time homeowner" in which no family member has any ownership interest in a residence within last three years
  • Must attend and complete homeownership counseling program
  • Head of household and/or co-head must be currently and continuously employed for one year on a full time basis (over 30 hours per week with at least $13,500 in annual total salary) unless disabled or elderly
  • Families must pay for independent inspection and contribute at least 2% of purchase price as down-payment (down-payment may be available)
The City of Paducah adheres to HUD's Fair Housing and Equal Opportunity laws.