Habitat selection criteria

Ability to Pay – Financial Criteria

• Income: From initial application to loan closing, applicant(s) must maintain an annual gross income that meets the income guidelines.
• Credit Score: Minimum 580, for applicants with established credit. Applicants with no credit/invisible credit must have at least three sources of verifiable 12-month payment history (rent, utilities, etc.)
• Debt-to-Income: Monthly debt payments cannot be more than 18% of gross monthly income. For student loan debt in deferment or forbearance, 0.5% of the loan balance will be counted toward monthly debt. Example: $50,000 loan balance = $250 monthly debt payment.
• Collections, Judgments, County Aid Liens: Total derogatory debt cannot exceed $3,000.
• Savings: Able and willing to save $2000 to cover closing costs.
• Bankruptcy: Minimum of 2 years since bankruptcy discharge, with good payment history since bankruptcy discharge.

Willingness to Partner Criteria

• Must notify Habitat of any changes to the household size or any changes to employment, income, or debt that occur during the housing and loan application processes.
• Must earn 300 hours of sweat equity* (per household) before becoming eligible to purchase a home. Friends, family, and community members can donate hours to help you achieve this goal.
• Must attend required homebuyer education classes.
• Willing to accept the neighborhood and lot assignment that is offered by Habitat. The budget, floor plan, building materials, and style of the home are determined by Habitat.*
• Willing to make monthly mortgage payments and be responsible for all home maintenance and repairs after the home purchase.

*Reasonable accommodations or modifications for ADA are handled on a case-by-case basis.