Individuals and families who are interested in applying for the Habitat home-buyer 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 to PARTNER
Perform 200 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.
Make a $1,200 closing cost payment (can be paid in increments)
Complete the multi-week Habitat Institute Homebuyer Education Course
Maintain or decrease your “debt-to-income” ratio while in the Habitat program
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 60% 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.
Family Size Gross Yearly Income
1 person $20,900 - $25,080
2 people $23,850 - $28,620
3 people $26,850 - $32,220
4 people $29,800 - $35,760
5 people $32,200 - $38,640
6 people $34,600 - $41,520
7 people $37,000 - $44,400
8 people $39,350 - $47,220
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
All applicants are encouraged attend a homeownership program orientation session to begin the application process. (Child care services are not available.) Our next homeowner orientation will be determined at a later date. Please sign up for email updates here.
We currently are not accepting applications. Please continue to follow this page for upcoming dates.
Learn more about the application process or download an application, click here.