Thank you for your interest in Habitat’s homeownership program!

General Qualifications:  

1) All candidates for homeownership through HFHMC must currently live OR work (note: "or") in Montgomery County, and have done so for at least one continuous year.

2) All applicants must be U.S. citizens or have permanent residency status as resident aliens. (This applies to all household members.)

Specific Qualifications:

All candidates for homeownership through HFHMC must also meet Habitat International's three main criteria:

• NEED
• WILLINGNESS TO PARTNER 
• ABILITY TO PAY

The "Need" Criterion:  All applicants must have a legitimate and pressing need for housing as defined by one or more of the following:

• Lack of decent and/or safe living conditions;
• Overcrowded housing conditions;
• Homelessness, living in a shelter or temporarily staying with family or friends;
• Excessive housing expense (spending more than 30% of gross income on housing, not including utilities);
• Income that is too low to secure conventional financing from traditional lending institutions.
• (NOTE: the “need” criterion is verified with a home visit by a team from HFHMC.)

The "Willingness to Partner" Criterion: All applicants must show a willingness to partner with HFHMC in the homeownership process by:

• Being willing to contribute at least 200 hours of sweat equity towards building Habitat homes, including their own and others' -- 200 hours per applicant on the mortgage, not to exceed 400 per family;
• Being willing to attend mandatory educational workshops related to the responsibilities of homeownership, including topics on finances & budgeting, credit, home maintenance & repair, fire safety, community resources, and other topics designed for equipping our homeowners to succeed;
• Being willing to accept the standard Habitat house-design and features;
• Being willing to live in the neighborhood in which Habitat is currently building and follow city and subdivision regulations;
• Being willing to be an active member of the homeowner’s association (if applicable);
• Being willing to participate in local Habitat media coverage and/or be willing to have image and/or words used in Habitat marketing materials.

The "Ability to Pay" Criterion: All applicants must have a stable income* and satisfactory credit history, but not be able to obtain a mortgage elsewhere via traditional means.

• The total, gross, household income* must fall between 30% and 60% of the median income for Montgomery County for the current year.  Please see chart below. "Total" income means the sum total of ALL forms of income -- SSI, disability, alimony, child support, food stamps, Section 8 voucher, earned income, etc. -- for ALL members of the household.  (NOTE: the median-income figures vary depending on family size and are updated annually by HUD.)
• Must have a one-year, continuous history of stable income.
• Combined total of monthly, long-term payments, including estimated mortgage payment, must be less than 41% of a family’s total gross income. The mortgage itself should not exceed 28% of gross income.**
• Must have an acceptable history of managing credit and a good record of paying rent and utilities.**
• Must be at least two years beyond bankruptcy.
• Must have the ability to pay a down-payment of at least $500, but not more than 1% of the selling price of the home, at settlement.

Annual Income Guidelines 2013:  A family's total household income* (income from all members of household combined) must fall within 30% and 60% of the county's median income for that family size. To determine if your income meets this criterion, find your household size (number of people who will be living in the Habitat home) in the first column at left. Then follow that row over to right.  If your household's income is GREATER THAN the number in the second column ("30% of Median Income") BUT NOT MORE THAN the number in the third column ("60% of Median Income"), then your income meets the basic income requirement.

*Gross income (before taxes and deductions are taken out of paychecks).
**Applications are evaluated on several criteria, including credit history and affordability ratios. Typically, a person should not spend more than 25% to 30% of his or her gross monthly income on housing costs.

If you meet the basic requirements listed above, the first step in our application process is attending an HFHMC homeownership orientation. Please see "The First Step" page for information about how to proceed.

 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 program in which there are not barriers to obtaining housing because of race, color, religion, gender, sexual preference, handicap, familial status, national origin, or any other basis as required by law.