habitat for humanity families who work in orange county of...

Habitat for Humanity

of Orange County offers

affordable homeownership

opportunities.

Moderate Income Families

Families must earn no more than 120%

of the Area Median Income

Home must be owner-occupied

Income Restrictions apply

Resale Restrictions apply

First Time Homebuyer

CONTACT:

Arthur Alderete, REMAX

888.594.5333 x2 [email protected]

Families who work in Orange County

can live in Orange County

Workforce Home for purchase:

793 North Concord St., Santa Ana

4 Bedrooms | 2.5 Baths | 1,505 Sq. Feet

Offered at $478,000

2200 Ritchey Street | Santa Ana, CA 92705| www.habitatoc.org

mailto:[email protected]

Habitat for Humanity of Orange County Workforce Homes

Information and Application Packet Table of Contents

Workforce Homes

Workforce Homes Purchase Information and Restrictions…………………… 1

Documentation Checklist …………………………………………..……….…...…….……. 2

Qualification Document of Understanding ……….………………..….…………….. 3

Release of Information Authorization ….…….….…...….………….…….….….... 4

Credit Report Authorization ……………………………………………………………….. 5

Frequently Asked Questions ……………………………………………….……………... 6 -7

Floor Plan.…………………………………………………………………………………………..…. 8

Workforce Home Application – Separate document

Habitat for Humanity of Orange County

Workforce Homes

Purchase Information Affordability Restrictions

Resale Restrictions

Workforce Homes

Habitat for Humanity of Orange County (Habitat OC) builds homes for sale to Orange County residents earning moderate income. This provides opportunities for homeownership to families who are unable to afford a market rate home.

Habitat OC has obtained land from local cities on which to build homes in exchange for Habitat OC’s promise to maintain the affordability of the workforce homes it constructs. Below is a description of Habitat OC’s program for sales to moderate income buyers.

Purchase Information

• Families must be "First-time Homebuyers." This is defined as not having owned a residence in the last three years.The purchase price will be below the market price for a similar home and will be set at an “affordable price” for a

moderate income purchaser.•

There are deed restrictions that limit the future sales price of the home.•

Must qualify for a bank loan with a minimum of 5% down payment and closing costs.•

• Home must be owner-occupied and cannot be rented or subleased, in whole or part.

Every member of the household must be a Citizen or Permanent Legal Resident.

Affordability Restrictions

• Workforce Homes must be sold to a qualifying family of moderate income earnings between 80% to 120% ofthe Area Median Income for Orange County. (See chart below).

• The maximum income allowable to purchase this home is defined by the Department of Housing and Urban

Development (HUD) guidelines as published by the State of California Department of Housing and CommunityDevelopment. These values change on a yearly basis.

• Total income of all household members from all sources (employment, child support, SSI, Social Security,disability, retirement, pensions, and other benefits) must be included.

2019 Income Limits by number of people in household

People In

Household 1 2 3 4 5 6 7 8

Min Income

80% AMI $66,500 $76,000 $85,500 $94,950 $102,550 $110,150 $117,750 $125,350

Max Income

120% AMI$82,250 $94,000 $105,750 $117,500 $126,900 $136,300 $145,700 $155,100

Resale Restrictions

The resale price of the home will be restricted for a period of Sixty (60) years. If the home is re-sold within thesixty year affordability period, it must be sold to another purchaser who qualifies with the equivalent income levelas the seller of the home. This means that the sale of a moderate income home must be sold to a moderateincome buyer at a price affordable to the new purchaser. The price will be set such that the total cost ofhomeownership for a moderate income buyer will not be greater than 35% of their total income.

The purchase price to a new qualifying family is determined by an Affordable Housing Price calculation and not bylocal comparative sales ("Comparables" or "Comps"). Any increase in the sales price of the home will bedetermined by any increase in the Area Median Income (AMI) for Orange County, not by the housing market.

•• No Bankruptcies or Foreclosures in the last seven years from settlement date.


Documentation Checklist

Please submit all of the following documentation:

Your application cannot be considered until all required documents are recieved. Habitat forms

Workforce Home Application

Qualification Document of Understanding

Release of Information Authorization

Credit Report Authorization

Paycheck stubs for last three months for ALL jobs, including last paycheck stub for 2019 showing YTD (year to date)

Signed Federal Income Tax Returns for previous three years (all pages)

W-2’s for previous three years (these are usually attached to your tax returns) and/or 1099’s

All financial statements for the last three months (all pages). Checking/Savings/CDs, retirement, investment, etc.

Driver’s license or California ID (age 18 and older)

Social Security Card

Loan prequalification letter provided by your lending institution (if available)

Please send completed document packet to Arthur Alderete*

Phone: (888) 594-5333 x2

[email protected]

Financial Information

Please submit the following for each working household member age 18 and older that will be living in the home (if applicable):

For self-employed applicants: A year-to-date Profit and Loss Statement Other Income documentation (if applicable):

Social Security Statement of BenefitDisability Statement of BenefitVA Statement of BenefitChild Support record of deposits for past six months, plus court orderSpousal Support record of deposits for past six months, plus court orderPension Benefit explanation and record of deposit

Family Information

Current debts of Applicant/Co-Applicant (education loans, credit cards, auto loans, revolving loans, etc.)

For each household member, including children, please submit the following:

Proof of U.S. Citizenship or Permanent Legal Residency (U.S. Birth Certificate, U.S. Passport or Resident Alien Card)



Qualification Document of Understanding

Income Requirements

Family income does not exceed “Moderate Income” limits listed below.

Total income of all household members from all sources (employment, child support and/or SSI, Social Security disability, retirement, pensions,

and other benefits) must be included. Total gross income (before deductions) must not exceed 120% of the median income for Orange County,

as defined by HUD guidelines and published by the State of California Department of Housing and Community Development.

2019 Income limits by number of people in household

People In

Household 1 2 3 4 5 6 7 8

Min Income

80% AMI $66,500 $76,000 $85,500 $94,950 $102,550 $110,150 $117,750 $125,350

Max Income

120% AMI $82,250 $94,000 $105,750 $117,500 $126,900 $136,300 $145,700 $155,100

General Requirements

I/we are first-time homebuyers (defined by HUD as not having owned a residence in the last three years).

I/we understand this home must be owner-occupied, not rented or sub-leased.

I/we understand that my/our homeownership costs (mortgage, interest, property taxes, home insurance and HOA fees) must not exceed

35% of my gross household income.

I/we have not filed bankruptcy, nor had a property foreclosed on in the last seven years from settlement date.

Financial Requirements

I/we have down payment (5% minimum) and closing costs, which combined may total approximately $25,000 - $30,000. (Depending

upon purchase price and down payment amount, this total could be higher)

I/we have provided all financial account information (bank, savings, CDs, investments, retirement) for the last three months.

I/we hereby grant permission to Habitat OC to share my information with financial, escrow and city entities.

I/we have my/our own bank to use as my lender and have attached a copy of the pre-approved loan qualification letter. - or -

I/we would like more options on potential lenders who understand Habitat OC’s purchase and resale restrictions.

Restrictions Documentation

I/we have received and read the purchase and resale restrictions (Disposition and Development Agreement - DDA), and shared it with

my lender.

I/we have provided Habitat OC with the required documents listed on the Documentation Checklist

I UNDERSTAND AND ACKNOWLEDGE THAT THE ABOVE INFORMATION IS ACCURATE AND COMPLETE.

Applicant Name (printed)___________________________Signature___________________________ Date______________

Co-Applicant Name (printed)________________________Signature___________________________ Date______________


Release of Information Authorization

The undersigned Applicant and Co-Applicant (if any), authorize Habitat for Humanity of Orange County, Inc. (Habitat OC) and its employees to obtain, provide, release, discuss, and share information with mortgage lenders selected by the potential Applicant, and with governmental subsidy providers. Information can also be shared with city housing officials.

This information may include (but is not limited to) the name, address, telephone number, social security number, credit score, credit report, income, liquidity, debt ratios, government monitoring information, account balances, program eligibility, and payment activity of the Applicant and Co-Applicant.

This Release of Information Authorization is valid for 180 days, beginning on the date signed by the Applicant and Co-Applicant, or until Habitat OC and the mortgage lender/mortgage servicer/city officials receive written revocation from the Applicant(s), whichever date is first.

I UNDERSTAND AND AGREE WITH THE TERMS OF THIS RELEASE OF INFORMATION AUTHORIZATION:

Applicant Co-Applicant

______________________________ _________________________________ Printed Name Printed Name

______________________________ _________________________________ Signature Signature

______________________________ _________________________________ Date Date


Credit Report Authorization

The undersigned Applicant and Co-Applicant (if any), authorize Habitat for Humanity of Orange County, Inc. (Habitat OC) and its employees to request credit reports from consumer reporting agencies.

This Credit Authorization Form is valid for 180 days, beginning on the date signed by the Applicant and Co-Applicant, or until Habitat OC receives written revocation from the Applicant(s), whichever date is first.

I UNDERSTAND AND AGREE WITH THE TERMS OF THIS CREDIT AUTHORIZATION FORM:

Applicant Co-Applicant

______________________________ _________________________________ Printed Name Printed Name

______________________________ _________________________________ Signature Signature

______________________________ _________________________________ Social Security Number Social Security Number

______________________________ _________________________________ Date Date


Definitions Frequently Asked Questions

Definitions:

Affordable Price: It is a price that a family with moderate income can afford without spending more than

35% of its gross income on all homeownership costs (including mortgage, interest, property taxes,

insurance, and HOA fees).

AMI: Area Median Income.

HOA: Homeowners Association.

HUD/HCD: Department of Housing and Urban Development/State of California Department of Housing

and Community Development.

Qualifying Purchaser: A “qualifying purchaser” is a household whose income does not exceed 120% of the

Area Median Income “AMI” as defined by HUD and published by the State of California Department of

Housing and Community Development.

Frequently Asked Questions:

How long is the qualification and purchase process?

The entire process requires approvals from three different organizations and can take 2 – 6 months to

review and complete.

Habitat OC Review – Habitat OC collects applications for a period of time. During this time, Habitat OC

reviews all income information to determine if you are income eligible. At that point, Habitat OC either

extends an offer to purchase at a specific price or declines the application. If you accept the offer to

purchase, your file is submitted to a bank.

Bank Review – The Bank reviews all documentation and income information and may ask for additionalinformation. The bank will communicate with you directly and will either offer a loan with specific downpayment and interest rate or if you do not qualify for a loan, the bank will decline your application.

Escrow – If your application is accepted by the bank and a loan is offered, a Purchase and Sale

agreement is signed and escrow opens. You must complete a First Time Homebuyer class.

City Review – The city reviews all documentations and income information. It will conduct its ownincome eligibility review and may ask for additional information.

Frequently Asked Questions (cont’d)

What happens when I want to sell my house?

When you want to sell the house, you must notify Habitat OC. Habitat OC has a Right of First Refusal to repurchase the home at an affordable price according to the then current HUD/HCD income guidelines for a buyer whose income level bears approximately the same relationship to the Area Median Income in the year of resale to the then Area Median Income in the year you purchased the home.

If Habitat OC chooses not to exercise its Right of First Refusal, you must sell the home to a

“qualifying purchaser” at an affordable price based on the then current HUD/HCD income

guidelines.

The sales prices is not determined by current market values of comparable homes (“comps”), but instead

by current income levels of Orange County residents.

Will I make money when I sell the house?

If AMI in Orange County increases between now and when you sell the home, the affordable sales price will

increase accordingly. Similarly, if AMI decreases between now and when you sell the home, the sales price

will decrease accordingly.

Historically, the AMI in Orange County has increased gradually over time, but there is no guarantee it will in

the future.

Can my child inherit the home?

Inheritance is considered a transfer of the property and any transfer must be to a “qualified purchaser”.

Your child may inherit the home as long as her/his total household income does not exceed 120% of the

then current AMI.

How long do the resale restrictions apply?

The resale restrictions apply for a period of 60 years. So if you sell the house before 60 years have passed,

the new purchaser must also agree to resale restrictions for a period of 60 years from the resale of the

home.

Should you have additional questions please contact:

Arthur Alderete (Lic. 01281647)

888.594.5333x2 or [email protected]


Santa Ana Freeway

I-5

Con

cord

Stre

et

Fruit Street

PLAN 2A1477 S.F.

PLAN 1A1505 S.F.

PLAN 2B1477 S.F.

Existing 6' masonry wall

Existing 6' masonry wall

6' woodfence

6' woodfence

5'-0"

19'-0

"

4'-0"

6" water

8" sewer

5' Pacific Tel.Easement

6' So. Cal.EdisonEasement

PP

Concrete UtilityPad

40'±Existing 3' Wall

ICV

FH

SB

5'-0

"5'

-0"

5'-0

"5'

-0"

SB

SB

SB

51'-0

"69

'-0"

20'-8"

5'-0"20'-0"SB

5'-0"

SBSB

10'-0"

5'-0

"S

B

797 N. Concord Street

793 N. Concord Street

Proposed Lot 18,743 sq. ft.

Proposed Lot 28,743 sq. ft.

10'-0"

5'-0

"

NewWM

S a n t a A n a , C a l i f o r n i aJuly 28, 2011KTGY Job# P010-0430

Habitat for Humanityof Orange County

Architecture+Planning17922 FitchIrvine, CA 92614949.851.2133ktgy.com

Schematic Site Plan0 16

8 32

Parcel 5A

Parcel 5B7,722 sq. ft.

Revised July 28, 2011

S a n t a A n a , C a l i f o r n i aJuly 28, 2011KTGY Job# P010-0430

Habitat for Humanityof Orange County

Architecture+Planning17922 FitchIrvine, CA 92614949.851.2133ktgy.com

First FloorSecond Floor645 Sq. Ft.860 Sq. Ft.

0 4

2 84 Bedroom / 2.5 Bath / 1,505 Sq. Ft. Total

Floor Plan 1A

Parcel 5A, Lot 2

Workforce Home Application

Workforce Home Application We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

Home Address

Address Bedrooms Bathrooms Sq.

Footage Affordable Sales

Price

793 N. Concord, Santa Ana, CA 92701 4 2.5 1,505

Applicant Information

First Name: Middle Name: Last Name:

Date of Birth: SSN: Email Address:

Home Phone Number ( ) Cell Number ( )

Employment Information

Current Employer:

Employer Address: Start Date:

Phone: E-mail: Fax:

City: State: ZIP Code:

Position: Gross Monthly Income:

Other Monthly Income: Source of Other Income:

Address Information for the last 10 years

Number and Street:

Own Rent (Please Circle) Monthly Payment or Rent:

City: State: To: From:

Number and Street:



Number and Street:



Number and Street:



Co-Applicant Information, if Married

First Name: Middle Name: Last Name:

Date of Birth: SSN: Email:

Home Phone Number: ( ) Cell Number: ( )

ZIP Code:Co-Applicant Employment Information

Current Employer:

Employer Address: Start Date:

Phone: E-mail: Fax:

City: State: ZIP Code:

Position: Gross Monthly Income:

Other Monthly Income: Source of Other Income:

$478,000

Other persons who are currently living with you. (Attach a separate sheet if more space is needed)

Name: Age: SSN:

Driver’s License #:Relationship: Driver’s License #: Fulltime Student:

Name: Age: SSN:


Name: Age: SSN:


Name: Age: SSN:


Name: Age: SSN:


Name: Age: SSN:


DECLARATIONS: For each of the following questions, please mark the Yes or No column with an “X” for the Applicant and Co-Applicant.

Question Yes No

Have you had property foreclosed upon or given title or deed in lieu of foreclosure in the past seven years?

Are there any outstanding judgments against you?

Are you party to a lawsuit?

Are you presently delinquent or in default on any loan, mortgage, financial obligation, bond, or loan guarantee?

Are you obligated to pay spousal support, child support, or separate maintenance?

Are you a co-maker or endorser on a promissory note?

Have you ever filed for Bankruptcy within the last seven years? If yes, please explain.

Have you owned real property in the past three years?

List all sources of income for each member of the household age 18 or older. (attach another sheet if more space is needed)

Household member name Source of Income Gross monthly amount

HOUSEHOLD LIABILITIES: Please identify the debts of Applicant and Co-Applicant member. List creditor’s name, address and account number for all outstanding debts, including student, automobile, and real estate loans, revolving charge accounts, such as credit cards, child and spousal support, etc. This information may be provided on a combined basis by both married and unmarried persons if the accounts are jointly held. (attach another sheet if more space is needed)

Applicant & Co-Applicant name Creditor name & last four digits of account number

Monthly payment & months left to pay

Unpaid Balance

Min. Pmt

# Mo.

Min. Pmt

# Mo.

Min. Pmt

# Mo.

Min. Pmt

# Mo.

Min. Pmt

# Mo.

Min. Pmt

# Mo.

FINANCIAL ACCOUNTS: Please identify the checking and saving accounts, retirement, pensions, IRA, 401k, CD, annuities, etc. for the Applicant and Co-Applicant. This information may be provided on a combined basis by both married and unmarried persons if the accounts are jointly held. Attached another sheet if more space is needed)

Applicant & Co-Applicant Bank, Savings & Loan, Credit Union Name

Account Number Current Balance

$

$

$

$

$

$

PLEAE READ BEFORE SIGNING: All the information I have given in this application is true and correct to the best of my knowledge. I understand that you will confirm the information and retain the application whether or not it is approved. I hereby authorize HABITAT FOR HUMANITY OF ORANGE COUNTY, Inc. to verify my credit status and any of the above information as a condition of this application.

Signature of Applicant: Date:

Signature of Co-Applicant: Date:

habitat for humanity families who work in orange county of...

Documents