How to Become a Home Owner

 

Our Family Selection & Support Committee looks at the following:

 

1.       Ability to Pay - The committee will review your current financial information, run a credit report, and look to see if you can affordably pay your mortgage each month in addition to utilities and your current debt load. We make sure that your mortgage amount (interest-free principal, taxes and insurance) are no more than 25% to 30% of your household income. Our household income requirements are $28,853 - $43,279 – which is 40% to 60% of the Median Income for Salem County NJ for 2009. Please note that these amounts are guides that the committee uses – they review applications on a one on one basis and want to make sure that the applicant is financial able to become a Habitat homeowner.

 

2.       Current Housing Need - If you do have the ability to pay, the committee will schedule a home visit and see the applicant's current housing condition. We look at factors such as overcrowding situations, unhealthy living conditions, high rent costs, poor structure condition and/or unsafe neighborhood conditions.

 

3.       Willing to Partner - This part deals with the applicant's ability to commit to the building of the home, completion of the required sweat equity, and your commitment to being a family partner ambassador to our Habitat program.

 

Some frequently asked questions:

 

Is there a waiting list?  Answer:  No, our affiliate will take your information for our mailing list and then notify you when our affiliate is holding an orientation meeting. The flyer will indicate where the home is located, the price of the home and the estimated monthly mortgage. You must attend these meetings to fill out an application so we can begin processing you for a Habitat home.

 

Are you looking for some who has perfect credit? Answer:  What the Family Selection committee is looking for in an applicant is someone who has an organized financial plan and budget, and is aware of what is on his / her credit report and is working on their debt load. 

 

What if I have filed for Bankruptcy? Answer:  There is a waiting period of two years before anyone can be considered for a Habitat home. After that two-year period, you may reapply; however, we will rerun your credit report to see if there are any improvements.

 

What is your sweat equity policy? Answer:  Although sweat equity policies vary for each Habitat affiliate, our policy is 200 hours per adult in the household, with 50 of this amount that can be donated by friends, families, co-workers, etc. This sweat equity must be completed before settlement can take place and the family can move in.

 

If I am turned down, can I reapply? A. Yes, if you are turned down, you will remain on our mailing list and will receive notice on future housing projects. You will also receive our newsletter to keep posted on our progress.

 

Do I have to be a Salem County resident? A. No, however, the family partner must be available to be at the work site and other activities to work on their sweat equity hours.