How to Qualify for Homeownership
To apply and qualify to become a Habitat homeowner you must meet the following three criteria and additional requirements:
Need for a Home (ONE of the following situations must apply)
Inadequate Housing- Problems with the present structure such as: water, electrical or sewage service system, heating, poorly maintained (substandard), or failure to meet city property maintenance standards
Overcrowded- Family size compare to number of bedrooms in the home
Government Subsidized Rent- Living in a government-subsidized housing (i.e. Housing Authority, Section 8 housing)
Cost Burden- Cost of rent plus utilities is more than 30% of applicant’s monthly income
Unable to obtain a mortgage through the Private Market- Applicant has been denied for a conventional or government assisted mortgage loan
Transitional- Currently living with a family member or friend
Ability to Pay
Income Requirements
Must demonstrate the ability to afford the projected Habitat no interest monthly mortgage payment (payment depends on size of the home, mortgage includes principal, taxes and homeowner’s insurance)
Must have a minimum of two years of continuous (must have at least six months with current employer) and documented income and currently earn a minimum annual gross income of $24,444 to $25,888 (depending on the size of home that applicants qualify for)
*Gross income (before taxes and deductions are taken from paychecks)
We count income from job wages, court order child support, alimony, Social Security Survival benefits (SSDI), Supplemental Security Income (SSI) and Disability.
According to family size, the total family annual gross income must be LESS than the chart below
2019 Income ranges are from HUD as of /24/2019 and subject to change.
Monthly mortgage payment cannot exceed 30% of the applicant’s gross monthly income.
Monthly debts (those shown on credit history), including the mortgage payment, cannot exceed 43% of applicant’s gross monthly income.
Have the ability to save the $1,500 escrow down payment. $500 at approval and $1,000 before closing
Credit Check
Habitat will conduct a credit check. Medical debt is not taken into consideration and we do not look at credit scores. Instead, we consider your credit history. However, non-medical accounts in collection, charge-offs or unsatisfied public records need to be resolved prior to approval.
Bankruptcy release date must be at least four years old
Willingness to Partner
Willing to complete the required 300 sweat equity hours to help build your own and other Habitat homes
Willing to attend the Homebuyer Education Workshop (spread out over three Saturday’s from 8:30 am to 4:30 pm
Willing to complete the mentoring progra
Additional Requirements
Must be a first time homeowner (cannot have owned a home within the past 3 years, except for a mobile home)
Must live or work in Martin County for twelve (12) months prior to applying with Habitat
All adults in household must pass a criminal background check
All members in household must be either US citizens or legal permanent residents (green card)
