Homeownership Program Eligibility: What is AMI & Why Does it Matter?

Habitat for Humanity of Monroe County provides qualifying households the opportunity to purchase a home through an affordable mortgage. This year’s homeownership application window will be open from August 5 to August 16, 2024 and we encourage everyone to apply.

To qualify for our program, you must:

  • Have lived or worked in Monroe County for 1 year
  • Have a need for housing
  • Have the ability to pay an affordable mortgage
  • Have a willingness to partner with Habitat for Humanity
  • Attend a Homeownership Information Meeting within the last 12 months

Ability to Pay // Income Requirements

Habitat for Humanity of Monroe County uses Area Median Income (AMI) to determine income eligibility for our Homeownership Program. AMI is calculated based on the median income of a specific geographical area, such as a city or county. To qualify, households must earn between at least 35-80% of the AMI based on the family’s size and include all sources of gross income.

Importance of AMI

Habitat for Humanity aims to provide affordable and sustainable housing solutions to low-income families. By using AMI, Habitat guarantees homes are priced appropriately for participants in our Homeownership Program. The income guidelines help determine affordable mortgage payments, taking into account the financial capacity of the homeowners. Please note that most Habitat homes in the Bloomington area are affordable to households earning 35% or higher of the area median income.

It’s important for potential Habitat for Humanity homebuyers to be aware of these income requirements, start the application process for assistance programs early, gather necessary documentation in advance, and acknowledge the relevance of AMI in assessing program eligibility.

Assistance Programs

  • If potential homebuyers believe they are under the gross income limit, they should apply for assistance as early as possible.
  • Some assistance programs to consider are SNAP (food stamps), Section 8 housing, social security benefits, and energy assistance provided by organizations like South Central Action Program (SCCAP).
  • Applying for and obtaining documentation for these assistance programs may take time, so it’s crucial to start the process early.
  • Feel free to contact us for further details and assistance in meeting the required AMI.

Additional Considerations

  • The period between the required Homeownership Information Meeting and the application window may not be sufficient for individuals who realize they need to include certain income sources to qualify.
  • If homebuyers have child support they need to claim, acquiring the necessary documents might also require time.
  • If an applicant is working part-time, they may need to increase their hours or find a second part-time job to meet the income requirements.

Together, we can work toward achieving your dream of owning a home. We strongly encourage you to reach out to us with any questions you may have. For questions, contact Martha, Homeowner Services Director, at hs@monroecountyhabitat.org or call 812-331-4069.