Becoming a Habitat Homeowner
Requirements
for Homeownership Applicants
Habitat’s
acceptance guidelines are based on consideration of the following criteria:
Need
for Housing
The applicant(s)
must demonstrate that their current housing situation has one or more of the
following characteristics:
- Unsafe
or very poor conditions or located in a particularly unsafe area
- Rent,
or contribution currently paid towards rent, exceeds 30%
of net income
- Size is
inadequate for the present or anticipated residents
- Other
facts demonstrating a need for the type of housing Habitat can provide that
goes beyond a personal desire to own a home.
Applicants
will not be approved if they:
- Can
qualify for conventional financing without exceeding 30% of net monthly income
- Have
owned a home within
the last three (3) years
Eligible
applicants are not disqualified because they may qualify for another subsidy
program, governmental or charitable, or tax deferral.
Demonstrated
Ability to Pay
- Gross
household income must be between 30% and 60% of the
median income for the McHenry County area at the time of application.
- A
two-year history of stable income and employment
- An acceptable
credit history, which includes a good record of paying rent and utilities
- Bankruptcies
must have been discharged for two years
- A
$1000.00 down payment on the house.
- Ability
to afford anticipated mortgage payments. Monthly payments for debt cannot exceed 43% of gross monthly income
- Applicants
must be U.S. citizens or permanent resident aliens and must have resided or
worked in McHenry County, Illinois for the past year.
2019 Income Guidelines (Source: HUD)
|
Family Size
|
Minimum Gross Income
|
Maximum Gross Income
|
|
1
|
$18,750
|
$37,500
|
|
2
|
$21,400
|
$42,800
|
|
3
|
$24,100
|
$48,200
|
|
4
|
$26,750
|
$53,500
|
|
5
|
$30,170
|
$60,340
|
|
6
|
$34,590
|
$69,180
|
|
7
|
$39,010
|
$78,020
|
|
8
|
$43,430
|
$86,860
|
Willingness
to Partner with Habitat
- Applicant
will have to pay a $25 Application Fee. This fee is
non-refundable and covers the cost of obtaining the credit report and other
costs associated with processing the application.
- Applicant
and all adults living in the home must be willing to contribute at least 250
hours of sweat equity towards the building of Habitat homes, of which 100 hours must be completed on
construction projects. An additional 100 hours will be added to
the family requirement for every person aged 16-18 living in the home.
- Applicant
must be willing to live in a neighborhood in which Habitat is currently
building
- Applicant
must be willing to continue to partner with Habitat after their home is
finished through on time mortgage payments, volunteerism, and home upkeep
- Applicant
must be willing to attend required workshops for success in homeownership
*For application information, please contact Habitat for Humanity of McHenry County at (815) 759-9002.
Habitat
for Humanity of McHenry County is an equal opportunity housing provider. It
considers every applicant without regard to race, religious preference, gender,
handicap, family status or national origin.