Income · Fannie Mae Selling GuideUsing a Section 8 homeownership voucher to qualify for a mortgage

Some public housing agencies let Housing Choice Voucher holders use the voucher toward a mortgage instead of rent. Fannie Mae treats these Section 8 Homeownership Program payments as an acceptable source of qualifying income (Selling Guide B3-3.4-14). The lender needs evidence of the payment amount from the public agency that issues the voucher and evidence that the borrower will receive at least one payment on or before the first mortgage payment due date. No minimum history is required, and the lender doesn't have to verify continuance unless it has reason to believe the payments may stop. The monthly amount from the agency is the qualifying income – and because the whole amount is nontaxable, it may be grossed up under Fannie Mae's nontaxable income rules.