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.
In order to qualify for Habitat’s Path to Homeownership,
the applicant’s household income must between 30% - 80%
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)
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)
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)
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, national origin, age, marital status, sexual orientation, or sources of income.