First-time Homebuyer Achieves American Dream

Acting Maine State Director William Burney presents a ceremonial key to proud homeowner Gail Lane in her new home.

First-time homebuyer Gail Lane, a single mother of three teenagers and a younger child, closed on her Brewer, ME home after receiving assistance through the Section 8 Homeownership Program, a federal program designed to move families from public assistance to self-sufficiency. She also received $5,000 in downpayment assistance through HUD's American Dream Downpayment Initiative. The closing ceremony included the presentation of an oversized ceremonial key to Ms. Lane, the proud homeowner.

The Section 8 Homeownership Program, funded by HUD and administered by public housing agencies (PHAs), is designed to support first-time homebuyers previously receiving rental assistance through the Section 8 voucher program. PHAs make homeownership assistance payments to help with monthly expenses instead of making monthly payments to assist with rent. To date, 34 homeowners in Maine have purchased their home through the Section 8 Homeownership Program.

"Homeownership is such an important key to success and stability, and we are pleased that housing authorities are playing a part in this important program that will help bring homeownership to more families," said William Burney, HUD's acting Maine state director.

The American Dream Downpayment Initiative (ADDI), funded by HUD and administered by the Maine State Housing Authority, is a federal program that helps first-time low-income homebuyers with downpayment and closing cost assistance. To be eligible, individuals must be first-time homebuyers and must have incomes not exceeding 80 percent of area median income. ADDI gives first-time homebuyers downpayment assistance grants up to $10,000 or five percent of the homes purchase price, whichever is greater.

"Many families are able to make monthly mortgage payments, which in many cases are lower than rental payments, but are not able to save enough for downpayment and closing costs. With a little assistance, purchasing a home may be much easier than people think," Burney said.

The ceremony was held in recognition of National Homeownership Month-a month-long educational outreach effort designed to provide important homebuying information and financial tools. To learn more about the Section 8 Homeownership Program, visit HUD's website. To learn more about the American Dream Downpayment Assistance program, visit HUD's website at www.hud.gov/offices/cpd/affordablehousing/programs/home/addi/index.cfm.

Content Archived: March 21, 2011