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Following is more detail on the three basic criteria for partnership with Habitat for Humanity:
Need
You will be considered for a Habitat home if your present housing is not adequate and if you are unable to obtain adequate housing through other conventional means. Your current housing may be considered inadequate due to homelessness, overcrowding or structural problems with the roof, plumbing, electric or heating. Those paying too much in rent, living in a high crime neighborhood or receiving rental assistance will also be considered.
The percentage of your monthly income that you currently spend on housing is considered to determine need. You will be required to openly and fully discuss your financial situation with a Habitat interviewer. You and your family will be considered if your total income is over 25% of the area median family income but would not qualify for a FHA or other conventional loan. For example, see the chart to below:
Willingness to Participate as a Partner with Habitat
When selected, you become a "partner family" in the Habitat movement. As a "partner family," you must complete a certain number of hours of volunteer work with Habitat, which will count toward your total "sweat equity" contribution to be completed before becoming a homeowner. (A minimum of 200 hours for the first adult in the household and an additional 100 hours for each additional adult in the household is required.) Your assistance in constructing your home and the homes of others is called "sweat equity," and may include clearing the lot, painting, helping with construction, providing food for volunteers or working in the Habitat store or office.
You will be required to attend a Homebuyer's Education Club after being accepted to prepare yourself financially for homeownership.
You will be responsible for maintenance and repairs of your house from the time you move into your home.
During your partnership, you will work with a Family Support Advocate who will help you make a smooth transition to homeownership. After moving into your home, the Family Support Committee will maintain an on-going relationship with you. This includes financial counseling and household maintenance education.
Ability to Pay for the New House
Since you will be buying your home from Habitat with a no interest mortgage, you must demonstrate your ability to make the monthly mortgage payment. This payment will include not only the mortgage payment, but also the payment for real estate taxes and insurance. We will help you to determine if this payment will jeopardize your ability to meet all of your other family financial obligations and expenses.
You will be required to openly and fully discuss your financial situation with a Habitat interviewer. You and your family will be considered if your total income is over 25% of the area median family income but you would not qualify for an FHA or other conventional loan. For example, a family of 4 living in Charlottesville must have annual income of at least $16,700 gross (before taxes are deducted) in order to qualify.
Habitat does not require perfect credit. We are able to approve families with less than perfect credit histories if we see evidence of a willingness and ability to honor one's obligations and if we think that any credit problems can be brought under control by the time the applicant moves into their home. |