Families looking to become homeowners partner with Habitat to build a decent, affordable place to call home. As a Habitat homeowner, you’ll not only buy a home, but you’ll gain the stability and security that comes with it and a strong foundation for generations to come.

Income

At Habitat, we believe in making homeownership accessible to everyone. Our affordable homeownership program is designed to accommodate a range of income levels:

Low Income: If your household earns between 50% and 80% of the area median income, you may qualify for our program.

Income Documentation: We kindly ask you to provide proof of your income so that we can accurately calculate your annual household earnings.

Income Limits: It’s important to note that income limits vary for each Habitat home. Factors like property taxes, mortgage payments, insurance, and HOA dues influence these limits. This means that you might qualify for the Habitat program but not for a specific Habitat home. For instance, a particular home may be available for families earning between 60% and 80% of the area median income, which may affect eligibility for that specific home.

Credit

Your financial history is important to us, and we want to ensure that you’re prepared for the responsibilities of homeownership. We don’t have a strict minimum credit score requirement, but we do conduct a detailed credit review to check for major issues on your report. Here are some key points to consider:

  • We’re looking for at least three open credit accounts that have been in good standing for both the applicant and the co-applicant for at least 12 months.
  • If you don’t meet this requirement, you may have the opportunity to provide alternative credit references.
  • No recent foreclosures or bankruptcies in the last three years. We assess the date of discharge for bankruptcy.
  • We need to see no open collections, judgments, or liens. Even small amounts need to be addressed before moving forward.
  • We allow a maximum of two late payments in the previous 12 months.
  • Your personal recurring debt should not exceed 8% of your income. Our program has a maximum debt-to-income ratio of 43%, with 35% allocated for monthly housing costs and 8% for other debts like student loans, credit cards, and auto loans.

Proof of U.S. Legal Residency

For all applicants whose names will appear on the title, proof of legal U.S. residency is necessary, with at least one applicant showing permanent legal U.S. residency. Please refer to our pre-application for a list of acceptable documents.

First Time Homebuyer

To qualify for our homeownership program, we follow HUD’s definition of a first-time homebuyer. This typically includes individuals who meet one of the following criteria:

  • Someone who hasn’t owned a residence in the 5 years leading up to the property purchase, including their spouse.
  • A single parent who only owned property with a former spouse while married.
  • An individual categorized as a displaced homemaker, who has only owned property with a spouse.
  • Someone who has owned a residence not permanently affixed to a permanent foundation or one that doesn’t meet building code standards.
  • An individual who has only owned a property that cannot be brought into compliance for less than the cost of constructing a permanent structure.

Household

Applicants and household members should have lived together for at least 6 months before applying for our program. All household members need to have resided together in their current home for 10-12 months out of the year.

Orientation Attendance

To facilitate your journey through the Habitat homeownership program, we require applicants to attend an orientation. This free, hour-long class covers program guidelines, expectations, timelines, and provides you with an opportunity to ask questions.

Selection

Our selection process is based on three key criteria:

We consider the income and credit of the applicants, as explained in detail above.

We assess the stability of your current housing situation. Factors such as whether your housing is transitional, below market rate, unstable, unsafe, overcrowded, or resulting in a significant cost burden (a high percentage of your income going toward rent) are taken into account.

Habitat’s homeownership program is about offering a helping hand, not a handout. As a homeowner, you’ll need to meet certain requirements, including contributing sweat equity and following a savings plan:

– **Sweat Equity**: Partner households are expected to contribute 250-500 hours of sweat equity to the construction of their homes. Friends and family can also donate some of these hours, and we make reasonable accommodations for health and disability needs.

– **Savings Plan**: If your household is selected as a partner household, we’ll work with you to create a savings plan to help you cover your closing costs. Further details will be provided if you’re chosen as a homeowner.