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Los Angeles NHS Turns Section 8 Renter into a Homeowner

"I feel like shouting to all my other Section 8 renters, JUST DO IT, What are you waiting for?, Why rent? Pay the same or less and own, I did it you can too!"
--Yolanda Orsot, new homeowner

By Jo-An Turman

July 16, 2003 -- It is true; the first homeowner from the Section 8 Homeowner Program offered through LA NHS is now a success story. Yolanda Orsot only dreamed of homeownership and in 1996 took the first steps into turning that dream into reality when she attended a homebuyer education class offered at Los Angeles Neighborhood Housing Services (LA NHS). Now some 7 years later Ms. Orsot is finally a homeowner.

Yolanda Orsot, a single woman living in Los Angeles was working and saving what she could toward a down payment with the hope of eventually purchasing and own her own home. She attended a HUD home show in 1996 and was drawn to the LA Neighborhood Housing Services booth where she was given a variety of pamphlets and other information regarding homebuyer education classes and how to get started with purchasing a home. She enrolled in a six-week homebuyer education class and received a certificate. She was also told that she did not qualify at that time to purchase a home and counseled on what she needed to do in order to qualify. She was working for the Housing Authority Department. A couple of years passed while Yolanda was still working and saving toward a home when she became disabled.

She know her dream of homeownership would have to be put on the back burner until she was back at work full time again. Things became harder and Yolanda was forced in 2000 to apply for Section 8 (a government assistance renter program that supplements renters with a monthly grant that helps the renter afford a house or apartment by only having to pay a small co-pay supplement). Section 8 was only supposed to be a temporary assistance program until she was able to return back to work full time. But that never happened, yet Yolanda never forgot her dream of becoming a homeowner and the useful information she received from taking the course at LA NHS in 1996.

Then, in 2002, while reading the Section 8 Newsletter she read an article that would change her life and restore her belief of becoming a homeowner. She read about a new Section 8 program that helps Section 8 renters become homeowners and Section 8 will still pay their share of a gap supplement and the buyer just pays a small portion of the total monthly mortgage. It sounded too good to be true since she was already doing that yet renting. One of the requirements was to enroll in a 12-hour homebuyer education course offered by LA NHS. Well, Yolanda was already half way there since in 1996 she had already taken a similar class. She called Ameer Elahee, director of education, and enrolled in this new course and shortly thereafter began shopping for a home yet she was still on disability.

It took her nearly a year to complete the course but she finally qualified for a home, got the final approval from Section 8, and in April closed her escrow. The amazing part is that she is now paying less than when she was when she was renting a two-bedroom home that needed several repairs in South Los Angeles. She could not believe it had finally happened after all these years. She tried to inform other Section 8 tenants and friends about this incredible program but there were very few that shared the same dream and vision of homeownership like Yolanda.

Yolanda has a house note of $986 per month in which Section 8 pays a whopping $877 and she only has to pay $144.41 per month and she is the owner. She only had to put 1% down on a sales price of $172,000, which amounted to $1,720 out of her own pocket. She received a loan from Cal Fed, now Citibank, at a 6.375% interest rate. She also has two silent 30-year 2nd and 3rd loans in order to help her qualify. When Yolanda was renting she had to pay $259. per month. Yolanda’s income is only $944 with social security and disability, yet as of this April she owns a large three-bedroom, two bath home with a nice yard and was in move-in condition with no repairs needed near Figueroa and 99th Street. The home was completely refurbished and she has a large garage to boot. LA NHS Realtor, Jess Franco helped Yolanda the whole way and found her this Enterprise home. The entire LA NHS lending and education team was involved in this transaction. She is very grateful and appreciative to LA NHS.

Asked about the experience, Yolanda said "It took a while, you have to be patient, but it is definitely worth the process. I feel like shouting to all my other Section 8 renters, JUST DO IT, What are you waiting for?, Why rent? Pay the same or less and own, I did it you can too. There is nothing like pulling into my own driveway, my garage, everyday." She hopes someone will listen and follows in her footsteps. She also said she cannot thank LA NHS enough for sticking with her, walking her through, encouraging her, and making sure she achieved her goal of becoming a homeowner.