Habitat home buyer program overview
Through our Home Buyer Program, Habitat finances and originates the mortgage for our home buyers and serves as the general contractor for the construction of the home. Our Home Buyer Program provides benefits to home buyers and the community. Home buyers benefit from decent, affordable housing while the community benefits from the redevelopment of neighborhoods and an increase in tax revenue. Our Home Buyer Program does not give houses away. Families spend “sweat equity” hours helping to build their home, pay a down payment at closing and make monthly mortgage payments consisting of both a principal payment to pay off their loan and an escrow payment to pay for homeowner's insurance and property taxes. Habitat homes are made affordable through the use of volunteer labor, in-kind partnerships and the affordable financing model we use in house.
*Please note, our application period has recently reopened with an opportunity to build and purchase a home with Habitat on Erie Avenue in Sheboygan yet this year. CLICK HERE to view an information flyer and read below to learn more about our program. If you are interested in applying, the first step is to call or email Karina Berdyck, Director of Homeowner Services, to schedule an informational meeting and receive an application.
how to qualify for the Habitat Home buyer program:
Individuals and families interested in the Habitat Home Buyer Program must meet our program qualifications which include: need, ability to pay, willingness to partner and residency. Each of these qualifications are outlined below.
Need for Housing
Based on current housing conditions, there must be a demonstrated need in order to qualify for a Habitat home. Some examples of need are outlined below. This list is not all-inclusive.
Ability to Pay
Ability to pay is determined through the information provided on the application, pay stubs, benefit statements, previously filed federal tax returns, and credit reports. Applicants must have a steady, reliable source of income and demonstrate financial responsibility.
Need for Housing
Based on current housing conditions, there must be a demonstrated need in order to qualify for a Habitat home. Some examples of need are outlined below. This list is not all-inclusive.
- Structural/mechanical problems (visible holes or large cracks, leaks, hazardous/toxic materials, electrical issues, plumbing issues, appliances not working, etc...)
- Inadequate sleeping arrangements (more than two people share a room, children of different genders share a room, people must sleep on the couch or floor, etc...)
- Unsanitary conditions or health risks out of the applicant(s) control (bugs, rodents, sewage problems, allergy concerns)
- Homelessness - temporary or transitional housing (family currently living with relatives, friends, in emergency shelter or is otherwise homeless)
- Current housing does not meet the physical needs of a family member(s)
- Current cost of housing is greater than 30% of the gross household income
- Unable to obtain a conventional or government assisted mortgage
Ability to Pay
Ability to pay is determined through the information provided on the application, pay stubs, benefit statements, previously filed federal tax returns, and credit reports. Applicants must have a steady, reliable source of income and demonstrate financial responsibility.
- Family can afford to pay the monthly house payments (which will include principle, property taxes and homeowner’s insurance) AND projected monthly utilities (electric/gas/water/sewer)
- Applicants must NOT have filed for bankruptcy within the past 3 years
- Applicants must NOT have outstanding collections, liens or judgements that cannot be paid off by time of closing
- Family can afford a down payment at the time of closing
Willingness to Partner
In order to be considered for a Habitat home, a partner family must be willing to complete “sweat equity” hours. “Sweat equity” is when a home buyer takes part in building their own home and other Habitat homes and may include activities such as maintaining a lot (shoveling or mowing lawn), painting, helping with construction, working in the Habitat office, working in the Habitat ReStore or other approved activities. A two-adult family is required to perform a minimum of 500 hours while a single-adult family is required to complete 250 hours. A portion of the sweat equity hours can be completed by family and friends. All of the hours must be completed before the home buyer can purchase the home or move into the home. In addition, the partner family must also be willing to attend home buyer education classes.
Residency
All applicants and co-applicants must provide documentation that they are a U.S. citizen or permanent resident. They must also provide proof that they have lived or worked in Sheboygan County for at least 6 months at the time their application packet is submitted.
Willingness to Partner
In order to be considered for a Habitat home, a partner family must be willing to complete “sweat equity” hours. “Sweat equity” is when a home buyer takes part in building their own home and other Habitat homes and may include activities such as maintaining a lot (shoveling or mowing lawn), painting, helping with construction, working in the Habitat office, working in the Habitat ReStore or other approved activities. A two-adult family is required to perform a minimum of 500 hours while a single-adult family is required to complete 250 hours. A portion of the sweat equity hours can be completed by family and friends. All of the hours must be completed before the home buyer can purchase the home or move into the home. In addition, the partner family must also be willing to attend home buyer education classes.
Residency
All applicants and co-applicants must provide documentation that they are a U.S. citizen or permanent resident. They must also provide proof that they have lived or worked in Sheboygan County for at least 6 months at the time their application packet is submitted.
how to get an application for the home buyer program:
- To get an application for our Home Buyer Program, you must attend an informational meeting.
- Our application period has recently reopened with an opportunity to build and purchase a home with Habitat on Erie Avenue in Sheboygan yet this year.
- Please fill out the form below, call our Director of Homeowner Services (Karina) at 920-458-3399 ext. 305 or email her at kberdyck@habitatlakeside.com to schedule an informational meeting.
