Habitat for Humanity
Habitat is an ecumenical
Christian housing ministry
dedicated to selling
affordable houses to
qualifying partner families
Habitat for Humanity
Home Ownership is filled with
• Joys
• Responsibilities
Brookings Area Habitat for Humanity
You can buy a home!
Affordable– Habitat does not make a profit
Habitat charges NO INTEREST
Solid, reliable program – building homes since 1995
Affordable housing is our priority
House Selling Price will be
approximately:
3 Bedroom $55,000 (approximately $325/mo)
4 Bedroom $60,000 (approximately $375/mo)
including property taxes and homeowner’s insurance
Partnership is key to success
Habitat will:
• Build a house with you
• Sell you the house with a no interest loan
• Provide opportunities for you to learn the
skills you will need to own a home
How does Habitat for Humanity work?
• Meet Eligibility Requirements
• Pay $700 deposit for down payment and closing costs
• Attend Workshops
• Build a Home -- Sweat Equity
• Make House Payments
• Fund for Humanity
• Building Equity
• Second Mortgage
How does Habitat for Humanity work?
• Specific House Design Criteria
modest size, simple design, sale price includes cost of all materials
including in-kind donations. Most of the labor is donated.
• Application Process
– documents and a home visit
• 3 Selection Criteria
– Need
– Ability to Pay
– Willingness to Partner
• Sweat Equity
• Attend Workshops
Eligibility Criteria
• Income Guidelines
• Application
• Home Visits
• Notification
• Number of families selected
based on greatest need and
Habitat’s construction capacity
Need Criteria
• Below Upper Income Limit
(less than 70% of average median income)
• Overcrowded Living Conditions
• Substandard Living Conditions
• Cost Burdened
Ability to Pay
• Minimum Income Guideline
• Debt to Income Ratio
• No Liens or Judgments
• Consistent Payment History
• Able to Save for Closing Costs
Willingness to Partner
Sweat Equity -- 300 to 500 hours
Assist with Construction
Attend Workshops:
Homebuyer Express/CCCS
Others as available
Perform Other Sweat Equity Tasks
Attend budget counsel
Develop budget for homeownership
Habitat for Humanity House Design
• Habitat is not a custom home builder
• Square footage: 925 to 1100 square feet
• No garages or car ports
• One bathroom
• No dishwasher or central air
• You may not have a choice about the location
• You may not have a choice about floorplan
• No basement unless necessary
After the closing
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•
•
•
•
Set goals for improvements/additions
Prioritize their level of need
Save carefully and wisely
Improve your home as you can afford it
Enjoy this beautiful home of your own!
You may be asking yourself…
How many hours a week will I commit to working
with Habitat?
Who might help?
Am I willing/able to wait 10 to 18 months to move
into my home?
Home Ownership and Habitat
Payments
Down Payment
$700 in advance
Mortgage Payments
$$250 - $300
(including taxes and insurance)
Mortgage length depends on your ability to
pay at time of closing — 15 to 30 years
Prepare formoving costs including utility hook-ups,
lawn mower, lawn/garden tools, household items.
You may be asking yourself…
Am I willing and able to save
$75-100 a month now to pay the
required deposit on time?
Mandatory Workshops/Meetings
• Partnership Agreement and Basic House Description
• Budgeting and financial management
• What it means to be a homeowner
• How to maintain your home
• Frequent meetings with your sponsor and Building
Committee
• Preparing for the Closing and Understanding Your
Mortgage
Home Ownership and Habitat
Building a Home
With friends and family
With community volunteers
With lots of instruction and help
Home Ownership and Habitat
Hear What Habitat
Homeowners
have to say . . .
Debt-to-income Ratio
•
•
•
•
How much money do I owe?
School loans
• Department store
cards
Car loans
• Medical bills
Credit cards
Other misc. bills
Compare Debt to Income Level
Example:
Monthly net income (after taxes, ins., etc.)
Debt payments per month
Mortgage Payment (max 28%)
Debt to income ratio
Acceptable ratio is 40%
=
=
=
=
$900
$ 95
$250
38%
How to Apply
•
•
•
•
Complete application today
Provide all documentation in one week
Expect home visit in two to three weeks
Notification of acceptance in six weeks
Please Know that…
Some families apply 3 or 4 times
before they become eligible.
We WANT to work with you. If you are
not accepted the first time, please
come back!!
Next Steps
Make sure:
• Your name is on the sign-in sheet.
• You fill out an application.
• The application and ALL paperwork is in the
Habitat office by June 21.
• We can reach you by telephone!
Next Steps
• You should hear from us within 4-6 weeks
after we get your COMPLETED application.
• Call 692-5601 if you have questions.
• Monday through Thursday office hours.
Brookings Area Habitat for Humanity
Thanks you for your time !