Family Selection Criteria

To Qualify for Our Program…

Need:
• Your gross household income from all sources must not be more than 80% of the area median income (click HERE to see current income limits); AND
• Something about your current housing situation must be inadequate. Examples of conditions which may satisfy the NEED criteria may include, but are not limited to:
1. Condition problems: structural damage, problems with sewage, plumbing, electrical system, lack of adequate heating or air conditioning, lack of insulation, unhealthy conditions, etc.
2. Overcrowding
3. Cost-burdened (cost of rent plus utilities – excluding phone – is greater that 35% of family’s gross monthly income)
4. Homelessness or temporary housing
5. Family has been denied conventional or governmental assisted financing

How do we evaluate your housing need?
You will be asked to provide a description of your current housing and why you feel that it is inadequate. You must also be willing to allow members of our Selection Committee to conduct a home visit to observe the conditions you report.

Ability to Pay:
HFHMGC sells homes to our Partner Families. To be eligible to purchase a home, you must be able to afford the costs associated with the purchase.
• Your gross income from all sources must not be less than 35% of the area median income (click HERE to see current income limits).
• Your household must have stable source(s) of income which a projected HFHMGC mortgage payment (including utilities) will not be more than 35% of your monthly gross.
• You must not have so much debt that you could not afford to pay all of your bills and still be able to afford basic living expenses.
• To determine this, we will calculate what percentage of your monthly income will be available for living expenses after you have paid your mortgage and other credit obligations.
• You must not have any unsatisfied judgements or liens against you.
• You must be able to demonstrate 12-24 months of positive payment history on bills.
• You must not have excessive collection items on your credit report.

How do we evaluate your ability to pay?
Each applicant must be prepared to openly and fully discuss their financial situation, providing documents. Applicants will be required to provide documentation of income from all sources, as well as information about current expenses, debts, and credit history.

Are you willing to partner with HFHMGC?
To be eligible for our program, you must be willing to invest your time, effort, and commitment. Our goal is to empower people to achieve their own dream of homeownership. We can provide the support, but each Buyer must do the hardest work themselves. To successfully complete our program, each Buyer must:
• Complete required homebuyer education courses and individual financial counseling to prepare you for successful homeownership.
• Complete 100-150 volunteer hours, called Sweat Equity, helping us to build homes for future homeowners.
• Prepare for the costs of homeownership:
1. Save! There are up front costs when you purchase a home. It is the responsibility of the Buyer to pay for home owner’s insurance, closing costs, and other fees the day the sale takes place. If you do not have the full amount saved already, you will need to make a savings plan to save up the money you will need.
2. Examine your financial management practices and adjust if necessary. Successful homeownership starts with sound financial management practices. We offer education and counseling to help, but it is up to you to set yourself up for success!
• Be willing to purchase a home from our available inventory. Buying a home is one of the biggest decisions a person will make in their life. It is ok if you don’t want to buy one of ours! However, we cannot build custom homes. To benefit from our program you must be willing to choose from the properties we have available at the time your application is approved.
• Work enthusiastically alongside diverse members of your community.
• Agree to maintain the home and property after you buy it.
• Agree to pay the mortgage regularly and on time after you buy the house.