Homeownership Program

Basic Requirements

• At least 18 years of age
• Permanent resident status in the United States
• A current lease in the applicant(s) name for at least one year
• Lived or worked in Alamance County for one year
• At agree to credit and criminal background checks
• Provide evidence of legal separation or divorce (or other legal releases as appropriate) if a spouse is not participating as an applicant

Habitat Alamance program criteria include income guidelines and we evaluate all applications on three principles: need, ability to pay, and willingness to partner (continue below).

Here are all the documents which we request copies of as part of an application:

• Signed Program Agreement.
• Two forms of identification, at least one with a photo. This is required for anyone in the household over the age of 18.
• Divorce or Separation Papers (if applicable).
• Last three months’ bank statements for all bank accounts you or other members of your household have (age 18 and older). Include all pages.
• Pay stubs for the past 3 months.
• A copy of your current SSA Benefit Approval Letter(s). You can visit your account at www.ssa.gov for copies.
• A copy of your child support order and payment history.
• Last two years’ Federal Tax Return and W2 forms for all jobs held in the past two years.
• Last 12 months’ payment history for all your monthly utility bill obligations (phone, gas, electricity, water, cable, internet, cellphone, etc.).
• Monthly invoice or payment receipt for all other monthly debt/bills, for example: car insurance, car loans, and credit card bills (Visa, Master Card, store cards).
• Name, address, and telephone number of current employer. Contact information for previous employer if you have been at your current job for less than two years.
• Name, address, and telephone number of current landlord. Same information for previous landlord if you have been at your current address for less than two years.
• One (1) credit report for every adult (over 18) in the household. Go to www.annualcreditreport.com for a free report. Print all pages.  Keep a copy for yourself.

Habitat Alamance considers applications with household income within a range that is determined by the U.S. Department of Housing and Urban Development (HUD). HUD changes these amounts every year and they vary by the size of the family.

In arriving at total household income for the purposes of a Habitat application, applicants may include any documentable form of income: employment, public assistance, Social Security, Disability, child support, etc.

If you have additional questions regarding the income guidelines, please email Catherine.

Our Family Selection Committee will interview applicants and family members, as well as conduct a home visit to verify that your current housing is inadequate, unsafe, unaffordable, or unhealthy. You may also qualify if you live in subsidized housing.

We want to ensure our families are successful homeowners, so we verify their sources of income and their history of paying their bills to determine their ability to pay a Habitat mortgage. 

Overview

• Be able to pay an affordable mortgage (not more than 30% of household income)
• Have continuous and verifiable income for 12 months (this includes self-employment and non-wages such as child support, SSI, alimony, etc.)
• Make timely payments on all debts
• Clear all collection debts prior to closing
• All judgments and liens must be cleared by the time of application

Debt

• Debt: all debt will be assessed by the Gross Debt-to-Income Ratio and must be less than 41% of income.
• Collections: can not be excessive, and you must be working toward paying it off.
• Charge-offs negatively affect applicant standing.
• Judgments & Liens: in the event a judgment or lien arises, it must be cleared prior to approval or closing.
• Bankruptcy: applicants may apply 4 years after a Chapter 7 or 11 bankruptcy filing, or 2 years after they have received a discharge in a Chapter 13 case.

Applicants must be willing to partner with Habitat Alamance by investing at least 250 required Sweat Equity hours. Sweat Equity is time spent assisting with construction, attending classes, and other activities throughout their homeownership journey.