QUALIFICATIONS & APPLICATION INFO
Individuals and families who are interested in applying for the Habitat homebuying program must meet a number of requirements, which fall into three categories - NEED, PARTNER and PAY.
Families applying to the Habitat program must currently have a need for decent, affordable housing.
Substandard Conditions (structural problems, mold, pests, etc)
Overcrowding (too many people in one bedroom, using non-bedrooms as bedrooms)
Homelessness (living with friends, relatives, coworkers, etc)
Cost-Burden (spending more than 30% of income on rent)
Be Willing and Able to PAY
Families must have stable, verifiable income sufficient to support a monthly mortgage payment and other expenses and must meet the income guidelines listed below. Habitat serves families earning less than 80% of area median income for Madison County. Income guidelines are set by the U.S. Department of Housing & Urban Development and are updated annually. Having income within these guidelines does not guarantee eligibility.
Be willing to PARTNER
Perform 200 (or 400 depending on household) hours of “sweat equity” by working on their house and other Habitat houses, at the Habitat ReStore and at other area nonprofits. Children can even earn sweat equity hours to help their parents by getting good grades on their report card! Only 30 percent of hours can be “donated” by family and friends. Must be completed one month prior to closing.
Make a $1,800 closing cost payment (can be paid in increments)
Complete Homebuyer Education Courses
Maintain or decrease your “debt-to-income” ratio while in the Habitat program
# Living in Home
Max Gross Household Income
*As of 4/22/22; subject to HUD AMI guideline changes and other program requirements.
Family Size Gross Yearly Income
1 person $18,120 - $36,250
2 people $20,720 - $41,400
3 people $23,320 - $46,600
4 people $25,880 - $51,750
5 people $27,960 - $55,900
6 people $30,040 - $60,050
7 people $32,120 - $64,200
8 people $34,200 - $68,350
Be a first-time home buyer, meaning they have never owned a home or haven't owned a home in the past three years
Have not had a home in foreclosure in the past four years
Be unable to qualify for a conventional loan due to income level
Be able to prove ability to afford the monthly payment and household expenses
Have fair or passable credit and no judgments or liens
Have not declared Chapter 13 bankruptcy in the past 12 months or Chapter 7 in the past two years
Must have re-established credit from any previously declared bankruptcies
MONDAY - FRIDAY