Habitat Family Selection Basics
How do we select Habitat homeowners? Habitat homeowners are selected by the Family Selection Committee based upon the following 4 criteria:
Housing Need
Applicant(s) must currently be living in substandard conditions and have a need for simple, decent housing.
Willingness to Partner
Habitat homeowners work in partnership with Habitat staff and volunteers and must agree to complete between 200-500 “Sweat Equity” hours based upon the size of applicant family. Habitat Homeowners attend a required series of Homeownership Preparation Workshops throughout the homebuilding process, in addition to contributing to the construction of their homes and the homes of their neighbors.
Residency
Applicant(s) must live or work in Montgomery County for at least one year prior to application and be a permanent legal resident of the United States OR a United States citizen.
Ability to Pay
Applicant(s) must have a credit report clear of any declared bankruptcies or foreclosures within the last 3 years and must have verifiable household income that meets our guidelines. Habitat does not use a credit scoring system but does look VERY carefully at a credit payment history, particularly for a history clear of outstanding delinquencies, charge offs or unresolved credit issues. We encourage interested applicants to learn more about Credit and Homeownership by checking out some of the programs listed on our RESOURCE GUIDE.
Habitat homebuyers must typically have an annual household income between 30% to 50%, and in some cases up to 80%, of the Area Median Income (AMI) as determined by HUD. Each project may have different minimum and maximum income requirements as a result of the home sales price. An applicant should not pay more than 25% to 30% of their monthly income on housing expenses such as mortgage or rent, property taxes, HOA fees, hazard insurance, etc.
Family Selection Frequently Asked Questions
What is “Sweat Equity”?
Sweat Equity refers to the work that Habitat homeowners and families contribute to the construction of their home and their participation in Habitat Homeownership Workshops. In addition to actually building their homes, families can work in the Habitat ReStore, volunteer in the office or younger family members can earn hours through their grades.
How do you determine the total number of “Sweat Equity” hours for each homeowner?
Total Sweat Equity hours are based upon the size of the family and age of the family members. Each family must complete a minimum of 200 hours and each additional adult (18 years or older) will be assigned an additional 100 hours. Children 16 and 17 are assigned 50 hours. Total Sweat Equity shall not exceed 500 required hours.
Does Habitat give away Habitat homes?
No! Families purchase their homes from Habitat through a no-interest mortgage paid over 25-30 years. Homeowner’s monthly mortgage payments go into a revolving fund to help build more Habitat homes in the community
Can a family sell their Habitat home?
Habitat is about homeownership; families are able to sell their homes if they choose. Families do share equity with Habitat which will prevent a family from flipping and help protect homeowners from predatory lending. The longer a family holds onto their home the more equity they acquire. Families can sell their homes, like other homeowners, but there is no incentive to sell them quickly.
How can I apply for a Habitat house?
Please call our Family Selection Hotline for more information at 301-990-0014 ext. 26
