Families must agree to maintain the home and must participate in Habitat’s support program with their family friend prior to closing. The program includes financial counseling and household management.

                Two or more adults or two parent household                 500 hours               100 prior to construction

                Single adult or single parent head-of-household            250 hours                 50 prior to construction

In addition to completing all forms in a timely manner, families must complete the appropriate number of sweat equity hours prior to closing as partners with the affiliate.

CRITERION 3    WILLINGNESS TO PARTNER

The family must submit evidence of a payment plan to satisfy all bad debt and financial judgements and the fiscal ability to execute the plan Monthly debt payments, except for the monthly mortgage, real estate taxes and household insurance, should not exceed 10% of the family’s monthly income.Household income must not be threatened, stop or substantially decrease due to home ownership. All court and civil judgements must be satisfied prior to home completion.

The family must have a satisfactory credit history, references and no record of filing for bankruptcy or having been granted a bankruptcy decree within the past year.

The family must present evidence of ability to make monthly mortgage payments and escrow payments for homeowners insurance and real estate taxes in addition to their current debt. The HfHI housing expense- to -income and long-term-debt-to-income ratios will be used to calculate qualifying ratios for homeowner applicants. Total house payments, principal, taxes, insurance and utilities, except phone, must  not total more than 30% of total gross income. Other house expenses, auto, credit cards, reserve for home upkeep and repair, child support and alimony must not exceed 36% of the total monthly income. Exceptions may be discussed.

The family will pay a down payment of $1000.00, $100.00 prior to construction and the remaining portion any time before or at closing.

The maximum household gross income must be at least 25 % and not more than 50%of the county median family income. Consideration of others closely above this percentage will be based on special situations as handicapping conditions and medical issues.

All criteria listed must be satisfied

CRITERION 2    ABILITY TO REPAY     

In addition the family is unable to obtain a conventional or government-assisted mortgage loan to purchase a home. Those with incomes near the upper limits for their category may be required to provide proof that they cannot obtain a loan.

Family is living in HUD or Tribal Subsidized housing

Family is paying more than 50 percent of gross income for rent and insurance.

Inadequate number of bedrooms as determined by number, ages and sex of those living in the house

Neighborhood is dangerous, unsanitary or unsuitable

Current shelter has problems with heating system, water supply, electricity , bathrooms, kitchen, structure.

Definition of Need

Criteria are listed in priority order. At least one must be present. to qualify. Families with multiple criteria will have priority.

CRITERION 1    NEED FOR ADEQUATE SHELTER

ALL APPLICATIONS FOR HABITAT HOUSING ARE BASED ON NEED, THE ABILITY TO REPAY AND WILLINGNESS TO PARTNER.

FAMILY SELECTION CRITERIA

HABITAT for HUMANITY NORTHWOODS

Revised June 2003