Becoming a Habitat homeowner
How to qualify
Nashville Area Habitat for Humanity is an ecumenical Christian ministry that provides the life-changing opportunity for people to purchase and own quality, affordable homes. We accomplish this mission through volunteers and staff guided by Christian values.
Since our founding in 1985, Nashville Area Habitat has built more than 425 homes for purchase by families and individual who cannot afford a conventional home loan.
To qualify for a Nashville Area Habitat home, the following requirements must be met.
(Click headings below for more detail.)
Housing Need
- Have a demonstrated need for housing such as:
- Overcrowded space
- Homelessness
- Unsafe environment
- Rent burdened
- Temporary housing
- Does not meet accessibility needs
- Inadequate structure
- Unable to qualify for homeownership through other options
- Have lived in Davidson or Dickson county for the last six months. For information about Habitat for Humanity programs and affiliates in other Tennessee counties, go to www.habitat.org
- Must be a first time homebuyer. (Have not owned a home in the last three years)
Ability to Pay
- Household gross income must be less than 60 percent of area median income as adjusted by household size. See chart below for maximum income level. (Subject to change.)
2009 Habitat Maximum Income
| Household Size | Maximum Income |
|---|---|
| 1 | $27,240 |
| 2 | $31,140 |
| 3 | $35,040 |
| 4 | $38,940 |
| 5 | $42,060 |
| 6 | $45,180 |
| 7 | $48,300 |
| 8 | $51,420 |
- The ability to afford approximately $450–$550 for a monthly mortgage payment. This includes principal, taxes, and insurance. Habitat loans do not charge interest. The mortgage should not exceed approximately 30 percent of the applicant’s gross monthly income.
- Must have steady income for the last two years
- and any current income or employment has to have been received for six months or more.
- Ability to contribute $2,500 towards closing costs within six to nine months.
- Have a debt-to-income ratio under 40 percent.
- Ability to pay off any collections, judgments, or charge-offs listed on the credit report within approximately six to nine months before closing.
If you would like help with this before applying, please contact us. To get a free copy of your credit report, go to www.annualcreditreport.com or call 1-877-322-8228.
- Bankruptcies must have been discharged for at least one year for Chapter 13 and two years for Chapter 7.
Willingness to Partner
- Willingness to invest “sweat equity” hours to include building on the home with volunteers and attending homeownership classes. Accommodations can be made for clients with disabilities.
- Willingness to accept the location and design of the homes we have available.
ACT NOW! If you think you qualify, fill out the eligibility questionnaire or contact Nashville Area Habitat’s Family Services Director at 615.254.4663, ext. 215 or email ccampbell@habitatnashville.org
Did You Know?
Unlike a majority of states, Tennessee does not allocate monies to a state housing trust fund.
Do you think you might qualify for a Habitat Home?
- Get started on the application process by filling out a Questionnaire and mailing it to our office!