HUD's Section 8 Voucher Program Helps Rock Island Family Realize Homeownership Dream

Information by State  Print version   Left to right: Linda, Scott and RI HUD representatives holding the SOLD sign in front of the new home.

In front of their new home on April 16, Linda Vlahovich and Scott Fordham on the left, share a moment of celebration with Mitzie James, Section 8 Manager at the Rock Island Housing Authority, and Brian Hollenback, Director of the Rock Island Economic Growth Corporation.

The Rock Island Housing Authority and Rock Island Economic Growth corporation have teamed up to use a new HUD program, which permits housing vouchers to be used to help first time homebuyers. Linda Vlahovich and Scott Fordham, and their three children will soon be moving into the home shown in the photo. The Rock Island Housing Authority is believed to be the first in the state of Illinois to use the program. Housing Authorities participate in the program on a voluntary basis.

The Housing Voucher from the Housing Authority will help the family make payments on the twenty-year mortgage for up to fifteen years. The Mortgage on the $75,000 home was arranged by the Economic Growth corporation working in partnership with the Federal Home Mortgage Corp. (Freddie Mac), American Bank, Illinois Housing Development Authority, Housing Trust Fund, Federal HOME Loan Bank Affordable Housing Program and Illinois League of Financial Institutions.

To participate in the program, families must meet Section 8 Income guidelines, not owned a house for three years, own no other property, have no previous default on homebuyer programs and have savings for home maintenance.

Income limits vary from city to city, but in Rock Island, a family of four can earn up to $26,800 and still participate. There are other requirements for the program such as acceptable credit, employment for at least a year prior to purchase (except for elderly and disabled), and earnings of at least $10,300 annually. Families also must undergo credit counseling and homebuyer education.