Habitat for Humanity Habitat is an ecumenical Christian housing ministry dedicated to selling affordable houses to qualifying partner families

Habitat for Humanity Home Ownership is filled with Joys Responsibilities

Brookings Area Habitat for Humanity You can buy a home! Affordable– Habitat does not make a profit Habitat charges NO INTEREST Solid, reliable program – building homes since 1995

Affordable housing is our priority House Selling Price will be approximately: 3 Bedroom $55,000 (approximately $325/mo) 4 Bedroom $60,000 (approximately $375/mo) including property taxes and homeowner’s insurance

Partnership is key to success Habitat will: Build a house with you Sell you the house with a no interest loan Provide opportunities for you to learn the skills you will need to own a home

How does Habitat for Humanity work? Meet Eligibility Requirements Pay $700 deposit for down payment and closing costs Attend Workshops Build a Home -- Sweat Equity Make House Payments Fund for Humanity Building Equity Second Mortgage

How does Habitat for Humanity work? Specific House Design Criteria modest size, simple design, sale price includes cost of all materials including in-kind donations. Most of the labor is donated. Application Process –documents and a home visit 3 Selection Criteria –Need –Ability to Pay –Willingness to Partner Sweat Equity Attend Workshops

Eligibility Criteria Income Guidelines Application Home Visits Notification Number of families selected based on greatest need and Habitat’s construction capacity

Need Criteria Below Upper Income Limit (less than 70% of average median income) Overcrowded Living Conditions Substandard Living Conditions Cost Burdened

Ability to Pay Minimum Income Guideline Debt to Income Ratio No Liens or Judgments Consistent Payment History Able to Save for Closing Costs

Sweat Equity to 500 hours Assist with Construction Attend Workshops: Homebuyer Express/CCCS Others as available Perform Other Sweat Equity Tasks Attend budget counsel Develop budget for homeownership Willingness to Partner

Habitat for Humanity House Design Habitat is not a custom home builder Square footage: 925 to 1100 square feet No garages or car ports One bathroom No dishwasher or central air You may not have a choice about the location You may not have a choice about floorplan No basement unless necessary

After the closing Set goals for improvements/additions Prioritize their level of need Save carefully and wisely Improve your home as you can afford it Enjoy this beautiful home of your own!

You may be asking yourself… How many hours a week will I commit to working with Habitat? Who might help? Am I willing/able to wait 10 to 18 months to move into my home?

Home Ownership and Habitat Payments Down Payment $700 in advance Mortgage Payments $$250 - $300 (including taxes and insurance) Mortgage length depends on your ability to pay at time of closing — 15 to 30 years Prepare formoving costs including utility hook-ups, lawn mower, lawn/garden tools, household items.

You may be asking yourself… Am I willing and able to save $ a month now to pay the required deposit on time?

Mandatory Workshops/Meetings Partnership Agreement and Basic House Description Budgeting and financial management What it means to be a homeowner How to maintain your home Frequent meetings with your sponsor and Building Committee Preparing for the Closing and Understanding Your Mortgage

Home Ownership and Habitat Building a Home With friends and family With community volunteers With lots of instruction and help

Home Ownership and Habitat Hear What Habitat Homeowners have to say...

Debt-to-income Ratio How much money do I owe? School loans Car loans Credit cards Other misc. bills Department store cards Medical bills Compare Debt to Income Level Example: Monthly net income (after taxes, ins., etc.) = $900 Debt payments per month = $ 95 Mortgage Payment (max 28%)= $250 Debt to income ratio = 38% Acceptable ratio is 40%

How to Apply Complete application today Provide all documentation in one week Expect home visit in two to three weeks Notification of acceptance in six weeks

Please Know that… Some families apply 3 or 4 times before they become eligible. We WANT to work with you. If you are not accepted the first time, please come back!!

Next Steps Make sure: Your name is on the sign-in sheet. You fill out an application. The application and ALL paperwork is in the Habitat office by June 21. We can reach you by telephone!

Next Steps You should hear from us within 4-6 weeks after we get your COMPLETED application. Call if you have questions. Monday through Thursday office hours. Brookings Area Habitat for Humanity Thanks you for your time !