To determine your ability to pay for a mortgage and qualify for our program, Habitat considers your income (both past and present) and the amount you owe on other debts and your payment history. 

​

 

INCOME GUIDELINES

In order to qualify for Habitat’s Path to Homeownership,

the applicant’s household income must between 30% - 80%

of HUD’s area median income.

This amount is adjusted yearly. 

​

To qualify for the mortgage, the estimated house payment

cannot exceed 30% of applicant and co-applicant’s income.

For example, if your estimated payment is $600, then your

gross income needs to be approximately $2,000

to qualify. After an initial review, Habitat may request your

pay stubs, tax returns, benefit statements, bank statements, etc.

​

 

 

TYPES OF INCOME YOU CAN USE TO QUALIFY FOR A MORTGAGE

• Income from permanent employment (not seasonal or temporary)

• Self-employment income must be verified by two (2) years of tax returns

• Social Security, Social Security Disability, SSI, etc. that is expected to continue for at least three (3) years

• Retirement, pension, etc.

• Child support, alimony, etc. that is expected to continue for at least three (3)

 

 

Credit REQUIREMENTS

​

If your income meets our guidelines, Habitat will review your current and past debts and your payment history. Habitat for Humanity does NOT have a minimum credit score, but we will review your credit report.

 

Habitat must consider your other minimum monthly debt payments to determine if you can afford to pay your mortgage and your other debts. Your estimated mortgage payment and your other minimum monthly debt payments cannot exceed 43% of your income.

 

​

TYPES OF DEBTS THAT ARE INCLUDED IN YOUR DEBT-TO-INCOME RATIO

• Estimated house payment (including property taxes and homeowner’s insurance)

• Car payment(s)

• Min. payments on credit cards, store cards

• Personal loans, finance company loans, payday loans, etc.

• Student loans (even those in deferment or forbearance)

• Loans you have co-signed for others (even if someone else is making the payments)

​