🔄 During the Transition to HCR When you switch your voucher from NYCHA or HPD to HCR, there is a required one-year period before you can use your voucher toward mortgage payments. During this “conversion stage,” we will:
Help you locate an apartment where the landlord is aware that your voucher is switching to HCR.
Support you through the required one-year waiting period with HCR.
Work with you on credit, budgeting, and financial readiness so you are prepared for first-time homebuyer FHA mortgage approval.
⚠️ Note: HCR does not give you the mortgage. They only make their portion of the monthly mortgage payments. You must still qualify and be approved for a first-time homebuyer mortgage through a lender.
1️⃣ Complete HUD Homebuyer Counseling Mandatory before you can buy Covers budgeting, credit, debt-to-income, and what lenders expect. You’ll receive a certificate that both lenders and HCR require.
2️⃣ Get Mortgage Pre-Approval Apply with a HUD-compliant lender (not all banks participate).Lender reviews your credit score, income, employment history, and debt-to-income ratio. HCR requires you to be credit qualified (no recent defaults, collections, or bankruptcies).You must show steady income (job or benefits) to cover your portion of the mortgage.
3️⃣ Income Calculation (The Voucher Advantage)Lenders look at your earned income + the Section 8 subsidy. HCR tells the lender how much of the housing cost (mortgage + taxes + insurance) the voucher will cover. This increases your purchasing power since the voucher subsidy can count as income.
👉 Example: Family income = $2,500/month Voucher subsidy = $1,600/month Lender can qualify you based on $4,100/month effective income.
4️⃣ Down Payment Requirement HUD requires at least 1% of the purchase price from your own funds (not a grant).Example: $300,000 home → $3,000 minimum from your own money. Grants or assistance can be added, as long as you meet the 1% personal contribution.
5️⃣ Property Requirements Eligible homes: single-family, condo, co-op, or eligible manufactured home. Must pass HCR Housing Quality Standards (NSPIRE inspection) and a separate independent inspection. If the property fails, repairs must be made, or voucher assistance cannot be used.
6️⃣ Final Loan Approval After appraisal, inspections, and conditions are cleared, the lender issues final approval. HCR calculates your Housing Assistance Payment (HAP) each month. You bring your down payment + closing costs; HCR pays their share directly to the lender.
7️⃣ Closing & Move-In Once closed, you must live in the home as your primary residence. Subletting is not allowed. Your voucher covers part of the mortgage, taxes, insurance, utilities, and maintenance allowances.
⚠️ Common Stumbling Blocks Credit score too low → need 620+ for FHA, sometimes higher for conventional. Debt-to-income ratio too high → unpaid debt can block approval. Insufficient savings → closing costs often $7K–$15K.Inexperienced lenders → some don’t understand vouchers. Use lenders who know the program.
✅ Bottom Line You still need to qualify for a real mortgage. The voucher doesn’t replace approval — it just helps pay once you’re in. Our role is to: Connect you with the right lenders .Help prepare your credit, income, and documents. Guide you through inspections and compliance so nothing falls through.