In order to be considered for the Habitat Homeownership Program, applicants must meet three important criteria:
1. Need for Housing
A need for housing can be demonstrated by any combination of the following:
– Inadequate or substandard housing: structural issues; utility problems; nonfunctioning essential appliances; mold; transitional or subsidized housing (Section 8); etc. – Unaffordable housing: spending more than 30% of your income toward rent – Overcrowded housing: several families in one living space; children of different genders or with an age gap of more than 3 years sharing one room; etc.
2. Ability to Pay
Applicants must demonstrate an ability to pay back an affordable mortgage. Monthly mortgage payments include both loan principal and escrow (real estate taxes, homeowner insurance).
Future homeowners accepted into the HFHMC Homeownership Program must have:
– A household income within 25% to 80% of the county’s median income for your household size (see chart). – One or more years of stable income: this includes traditional employment and/or non-work related benefit income that is expected to continue for at least 3 years (disability, child support, TANF, Social Security, etc.) – A reasonable level of debt in repayment and/or collections (medical debt is not included in our calculations) – Judgments and/or liens that do not exceed a total of $500 – Assets that do not exceed $30,000
Additionally, all applicants will undergo a credit check; however, we are interested in your access to homeownership and are more forgiving in your credit review than a traditional lender may be.