How to Qualify
How to Qualify - The following are the general guidelines for eligibility to purchase a Habitat home:
• Demonstrate a need for a Habitat home such as living in overcrowded conditions or unsafe environments, living with relatives, friends or in other temporary housing, having a high
monthly housing cost, needing accessibility features for a household member, or being unable to qualify for conventional mortgages.
• Live or work in Davidson, Dickson, Cheatham, Wilson counties for the last six months. For information on Habitat for Humanity in other areas, please visit www.habitat.org.
• Must be a first-time homebuyer (have not owned a home in the last three years).
Ability to Afford Homeownership
• Have a household gross income (including all sources) within the guidelines below adjusted by household size. Income must be enough to afford an estimated monthly mortgage payment of $350-$600 (varies by county) that includes principal, property taxes, and homeowners insurance. The mortgage payment cannot exceed 30% of income. Click here to view the income limits in your county. The income limits posted are guidelines and subject to change.
• Have income that is reliable, verifiable and expected to continue for at least three years. Self-employed applicants must be able to provide tax returns and proof of the current year’s income and expenses.
• Show a steady income for the last two years and at least six months history of current income and employment.
• Have the ability to contribute at least $2500 for closing costs within six to twelve months of being approved. This may come from any source other than a consumer loan.
• Demonstrate a decent payment history of rent, utilities, loans, and other monthly expenses over the last six to twelve months. We do NOT use credit scores.
• Have manageable amounts of debt or loans payments. The ratio of monthly debt payments to monthly income should not exceed 40% including deferred student loans.
• Have the ability to pay off any collections, judgments, or charge-offs accounts listed on credit reports within six to twelve months. 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.
• Discharged for at least one year from Chapter 13 and two years from Chapter 7 bankruptcies.
Willingness to Partner
• Willing to invest at least 200 hours of “sweat equity” consisting mainly of 60 hours of homeownership and financial management classes, 10 hours of volunteering in the HomeStore, and 100 hours of building homes alongside community volunteers. Applicants must complete sweat equity hours themselves with accommodations or exceptions for applicants with disabilities.
• Willing to accept the location and design of homes currently available. Contact us for more information on our current builds.
Process - The entire process from application to owning a home takes six to eighteen months for most applicants. Habitat is a long-term homeownership program and is not designed to provide emergency housing.
2. Fill out the questionnaire completely and return it to our office by fax, mail, or in person.
3. Within two weeks, you will receive a letter in the mail. This letter will either invite you to attend an Application Meeting or tell you why you do not qualify at this time. If you do not yet qualify, we will try to provide resources that can help you become qualified or assist with your current needs.
4. Schedule and attend the Application Meeting where the next steps will be described.
We do not discriminate on the basis of race, sex, color, age, disability, religion, national origin, family status, marital status, or because all or part of income is derived from any public assistance program.