Section 8 housing when renting to family?
I own a house with a family member who cannot make the payments. Would it be legal for me to refinance them off of the mortgage and title, start collecting rent and having them apply for Section 8 Housing credits? Would this be a legal move? Legal but shady? or illegal? If you do not know, how much do Real Estate lawyers charge to discuss this?7 years ago - 3 answers
There is nothing illegal in your family member and you making a sale between the two of you in which you become the only owner. You would have to do a legal sell, then apply for landlord status for section eight. This is a two part process, with the sale seperate from the application for section eight landlord status. I would first get the house in my name and then begin the process of applying for section eight landlord status. However, there are a lot of rules and the property must meet certain criteria in order for you to gain this ability. How would you pay the payments while this process is going through? You will need to show an abilty to pay the payments on your own, wihtout any assistance else where in order to get a new mortgage. If you can show this there should not be a problem. Then do the application process for the section eight. How will the family member pay rent until the section eight is compete? Your family member has to apply for section eight and this can take a few years. There is usually a long waiting list. In the meanwhile you will be required to put it up in a fair way for other section eight renters. You just are not allowed to hold out for a particular renter who is waiting for approval of their hud certificate. That would not be fair rent practices and is illegal in every state. If you had another section eight renter in until the family member was approved, you would still need a real reason to evict the other renters. You can't evict them just to move a family member in. There are a lot of rules which protect the renters more than the owners. This is how Federal Aid works. Good luck in finding a way out of this mess.7 years ago
You would have to apply and qualify to be a section 8 landlord...do a google search for "become section 8 landlord." Start doing research! I had friends who considered doing this but decided it wasn't worth it!by KL - 7 years ago
You can NOT rent to family members or immediate relatives with Section 8. So the rest of this post is purely for your informational purposes.
Renting to Section 8 families in my opinion is a 50/50 bet. You are assisting a family of lower income and helping them live a more comfortable secure life. The majority of your rent is secured and solid, and comes from your local housing authority. But the space being rented must meet certain guidelines (screens in all windows that open, proper lighting and / or electrical fixtures in each room, fire/smoke and CO2 detectors throughout, etc...); and other specifications and guidelines on amount of rent allowed etc. There is alot to learn about renting to Section 8 vouchers; and as with renting to anyone, low income or not, people who do not own the space they live in are far less likely to maintain the space properly.
Source(s)by Reginald Whitcomb - 7 years ago