Qualifying for Homeownership
- Currently have low to medium income
- Are paying too much rent or live in inadequate/substandard housing
- Are unable to obtain a conventional home loan
- Have a reliable source of income to make monthly mortgage payments
- Have a credit history free of collection accounts and liens
- Are willing to partner with Habitat
The following information is taken into consideration:
1. Degree of Need for Adequate Housing
- Affordability (more than 30% of income going to housing)
- Inability to obtain conventional home ownership (income maximums)
2. Ability to Pay
- Cost of housing should be a blessing, not a burden
3. Willingness to Partner with Habitat
- Provide 200 to 400 sweat-equity hours, depending upon the size of the family
- Work with a Family Partner
- Attend classes and Habitat meetings
Habitat for Humanity is a Christian housing ministry financed through grants, private donations, Habitat Minnesota, businesses, and volunteer labor. The purpose is to build homes with families and sell the houses at no profit to families who could not otherwise afford a home.
The following situations are taken into consideration:
- Low income or medium income
- Currently residing in substandard housing
- Inability to obtain a conventional home loan
- Rent payment equals more than 30% of your income
- Inadequate indoor plumbing/electricity
- Poor heating
- Leaky roof
- Overcrowding (e.g. three to a bedroom)
- Unsafe or unsanitary conditions
With your permission HFHSCM will verify employment, other income, public assistance and rental history. HFHSCM will also perform a credit check and sex-offender database check. In order to evaluate your application we must receive the following documents:
- Income tax returns for the past two years and W-2s
- Privacy Notice Habitat for Humanity Homebuyers signed
- Applicant and Co-applicant Employment Verification Form – completed by employer(s)
- Public Assistance Verification Form Completed by Social Service Agency, if applicable
- Habitat for Humanity Application for Housing completed
- Copy of your current lease, plus a copy of a money order receipt or canceled rent check
- Attach copies of utility bills for month prior to the submission of the application (See item #7 on application)
- If you are approved for a Habitat home, HFHSCM will ask that you join programs to learn and practice budgeting, home repair, and maintenance. Monthly meetings are scheduled for families to meet this requirement.
- FAIM – Family Assets for Independence in Minnesota – applications must meet income guidelines to qualify for this program
- HomeStretch – open to anyone thinking of buying a home
- Each head of household must complete 200 sweat-equity hours. These hours are required and will be performed on your home, other Habitat homes, in the ReStore, or other possible options approved by the Executive Director.
- Once you meet the sweat equity and Family Support requirements, we will sell you a home for what it cost Habitat to build. Habitat house payments include taxes and insurance and will cost approximately $500 to $550 per month. Your house payments will then be used by Habitat to build more homes.
Next Steps in the Process
Families are selected from those applicants who meet the qualifications stated above. Because we are a volunteer organization, we cannot guarantee all qualified applicants who apply will receive a house. However, we will strive to meet the needs of as many qualified applicants as our resources permit. In addition, if you are not initially accepted, you may reapply.
Note: HFHSCM will not proselytize, nor will HFHSCM work with entities or individuals who insist on proselytizing as part of their work with HFHSCM. This means HFHSCM will not offer assistance on the expressed or implied condition that people must adhere to or convert to a particular faith or listen and respond to messaging designed to induce conversion to a particular faith.