115 S Depot St. HFHIC - Homeownership Selection Criteria Policy

115 S Depot St.HFHIC - Homeownership Selection Criteria Policy

Ionia, MI 48846

Ph: 616-523-6899

Fax: 616-523-6611

The selection of individuals/families who will purchase a home from Habitat for Humanity of Ionia County will be carried out by the HFHIC Selection Committee, using the following criteria. The HFHIC Selection Committee does not discriminate based on race, sex, color, age, handicap, religion, marital status, or because all or a portion of the applicant’s income is derived from public assistance.

1. Need for adequate housing

1. You will be considered for a Habitat home if your present housing is not adequate, and if you are unable to obtain adequate housing through other conventional means. Lack of adequate housing may include problems with present structure: water, electric, or sewerage service systems; heating system; or failure to meet city property maintenance standards. Also, taken into consideration are the number, ages and the sex of the children compared to the total number of bedrooms in your home.
2. The percentage of your monthly income that you currently spend on housing costs is also considered to determine need. You will be required to openly and fully discuss your financial situation with a HFHIC Selection Committee member.
3. You must currently be a resident of Ionia County for a minimum of one year.

1. Ability to pay

1. Applicants must demonstrate their ability to pay the monthly mortgage payment. This payment will include not only the repayment of the mortgage loan, but also the payment for real estate taxes and insurance. HFHIC will assist to determine if this payment will jeopardize the applicant’s ability to meet all other financial obligations and expenses.
2. Applicants must have satisfactory credit history and references. Evidence of capability to pay off all bad debts and financial judgements must exist. All financial judgments must be cleared prior to closing. Payments of bad debts must begin immediately upon signing the letter of acceptance.
3. Applicants must show ability to maintain adequate, steady income, and must demonstrate a history of financial responsibility.
4. Applicants must pay 1% of their loan, as a down payment toward closing costs no later than one month before occupancy.
5. You and your family will be considered if your total income is not over 60% of the Ionia County median family income, using the FY 2016 figures provided by the MSHDA Office of Community Development. The 2016 figures are as follows:

FY 2016 Income Limits Summary

1. Willingness to Participate as a Partner with HFHIC

1. Once selected, the family or individual will become a “partner” in the Habitat process. To become a “partner,” they must complete 40 hours of volunteer work per adult prior to groundbreaking with Habitat. These hours will count toward their total “sweat equity” contribution to be completed before becoming a homeowner. The assistance of the selected family or individual in constructing their own home and the homes of others is called “sweat equity,” and may include clearing the lot, painting, helping with construction, providing food for the volunteers or working at the Habitat ReSale Shop or Habitat office. A partner must complete 250 hours of sweat equity per adult. Partners can receive credit of up to 80 hours per adult by applying time put in on their behalf by friends and relatives who join in the work.

1. Once moved into the Habitat home, homeowners will be responsible for all further maintenance and repairs.

1. Partner families will be expected to maintain an on-going relationship prior to and throughout the build process with HFHIC. This will include financial counseling and household maintenance education as needed. This relationship will be maintained up to one year after the closing of the mortgage.