ready to become a homeowner?
TRANSCRIPT
partner with Habitat for Humanity of New Castle County
ready to become a homeowner?
what this will cover…
• Overview of Habitat for Humanity • What does our home-ownership program offer?• Expectations of prospective homeowners• Program qualifications• Overview of application process
about our organization
what is Habitat for Humanity?
Habitat for Humanity is a 501(C)(3) non-profit organization whose central focus is to revitalize the neighborhoods it serves via home-ownership, critical home repairs, exterior beautification, and empowerment. Our programs include:• Homeownership program• A Brush With Kindness – critical home repair program• Rock the Block – neighborhood beautification program
our presence
World Affiliates: 1,700+U.S. Affiliates: 1,192
about our affiliate
• Began in 1986• Serve New Castle County only• Abbreviated HFHNCC• Constructed 254 homes & counting…• Board of Directors: 15• Staff: 33• ReStores: 2
Habitat for Humanity NCCMission & Vision
our missionSeeking to put God’s love into action, Habitat for Humanity of NewCastle County brings people together to build homes, communitiesand hope.
our vision A world where everyone has a decent place to live.
what does this program offer?
benefits of our program
• Simple, decent, & affordable homes at 0% interest.• Reduced settlement costs.• Education that empowers you to be the most effective
homeowner you can be.• Opportunity to build community & improve quality of life.
our homes• 2-4 bedroom homes• Mostly townhouse style• Energy Star rated • Low maintenance exterior• Storage area in crawl spaces, attic, & closet space; no
basements• Hardwood flooring on first floor (except for kitchen &
bathrooms which are vinyl), second floor is carpeted
appliances in our homes
• Comes with NEW Whirlpool brand appliances:• Dishwasher• Over-range microwave• Refrigerator• Stove• Washer & Dryer
our homes
Prospective homeowners can choose from our selection of:• Cabinet colors• Carpet colors• Kitchen countertop colors• Bathroom & kitchen vinyl flooring colors
NOTE These are the only
items that you have the option to choose. All other items in house
(i.e. wall colors, layouts, appliances, fixtures, etc.) are standard.
a look at some of our homes
a look inside one of our homes
educating our homeownersOur program requires that prospective homeowners must attend ALL of the following classes:• Cornerstone – Construction basics and site safety training. • Foundations – Overall financial training that concentrates on how to properly
manage and budget money.• Settlement – Familiarizes prospective homeowners with settlement
procedures and documents.• Housing Counseling Training – Led by a HUD certified counselor, this training
reinforces the information learned from Foundations.
educating our homeowners
• Warranty – A breakdown of which items in your house are under warranty and what to do to maintain your home.
• Family Support Meetings – Mandatory monthly meetings where HFHNCC provides updates and different presentations to educate our prospective homeowners.• Topics covered are: civic engagement, wills, homeowners
insurance, foreclosure prevention, and many more.
partnership with $tand By Me
• HFHNCC partners with $tand By Me to provide our prospective homeowners with one-on-one financial coaching to help improve credit scores and overall financial health.
• This is a free service offered in Delaware to our prospective homeowners as well as to those not in our program.• Between this partnership and our Financial Foundations classes,
our prospective homeowners credit score increase by around 70 points.
how are we able to offer this?
HFHNCC builds affordable housing through a combination of:
• Affordable mortgages• Sweat Equity• Volunteers
how are monthly mortgage payments calculated?• Your mortgage term is based on your ability to pay.
• Terms can range between 20-30 years• Monthly payments are calculated based on 28% of your
gross monthly income • Gross monthly income = your monthly earnings before deductions
sweat equity
Sweat equity is a term used often when talking about the creation orbuilding process. It’s about doing the work — the hard work — to lowerthe cost of your home.
Any forms of prior volunteer experience cannotcount towards sweat equity. You can only completesweat equity if you have been accepted into theprogram.
volunteers
• We act in partnership with the local community as a diverse group including concerned individuals, partner families, faith groups, retirees, schools, civic organizations, and businesses.• Family Services Committee Volunteers: 36• Construction Volunteers: 3,700+ per year• ReStore Volunteers: 150+
expectations of prospective homeowners
completion of sweat equity hoursHFHNCC requires that prospective homeowners must complete sweat equity as follows:
• Main Applicant: 300 hours & 3 special events
• Co-Applicant: 200 hours & 3 special events
• Dependent(s): 200 hours & 3 special events
main-applicant sweat equity breakdown
225 Construction hours*+
~55 Classroom, Meeting, & Misc. hours+
20 ReStore hours________________________________
300 sweat equity hours
co-applicant & dependent(s) sweat equity breakdown
150 Construction hours*+
~30 Classroom, Meeting, & Misc. hours+
20 ReStore hours________________________________
200 sweat equity hours
sweat equity exceptions
• Sweat equity must be completed by those designated to live in anHFHNCC household who are 18 or older.
• In the event that a member or member(s), 18 or older, required tocomplete sweat equity have physical, mental, and/or developmentaldisabilities that would prevent them from working on a constructionsite, we would need a medical note outlining their limitations andtheir hours would instead be completed at one of the HFHNCCReStores.*
completion of sweat equity
• Sweat equity requirements must be completed two weeks prior to settlement.
• Failure to complete sweat equity hours or follow sweat equity guideline requirements can result in penalties or even omission from program.
completion of mandatory classes & meetings• Main applicants and Co-applicants must attend ALL monthly
family support meetings as well as complete all required classes and $tand By Me meetings
• Dependents only need to complete Cornerstone and Financial Foundations training
settlement can occur when…
Sweat equity is complete Credit report shows that delinquent debt is paid off or made current Current monthly debt remains less than 15% of gross monthly income All mandatory classes & trainings are completed Certificate of Occupancy is received You have saved complete settlement costs Home is complete
fees
application process fee• $25 at time of full-application submission to cover cost to
pull your credit report
program fees• $100 for financial foundations classes• ~ $3500 - $4000 at time of settlement to cover closing costs
after moving into a HFHNCC home
• HFHNCC retains the Right of First Refusal for 10 years• Homes must be owner-occupied for first 10 years
• After moving into your home, you are able to make modifications. • Your municipality will have to approve any exterior and /
or structural improvements.
program qualifications
what’s NOT relevant in selecting families
• Age• Color• Creed • Disability • Ethnicity• Marital Status
• National Origin• Race• Religion• Sexual Orientation• Sources of Income
how do we select families
The three major factors that help determine how we select individuals and families for our program are:
• NEED for adequate shelter• ABILITY to pay• WILLINGNESS to partner
need for adequate shelter
what qualifies as need for adequate shelter?
• You have been turned down for conventional housing• You are living in substandard housing conditions:
• Housing in disrepair or does not meet building code• Overcrowded• 50% or more of your income goes towards rent
ability to pay
checking income• Total gross verifiable income, for household, must fall within
HUD income guidelines.• Verifiable income = income that appears on a W2, 1099, etc.
• Must be employed with current employer for at least one year*.• Are required to provide employment verification.• Must provide proof of all forms of income:
• Examples: SSI, SSD, child support, etc. • Must submit past two years worth of W2’s
verifiable income guidelines
Family Size 2019 Minimum Gross Income
2019 Maximum Gross Income
1 $25,000 $37,8602 $25,000 $43,2603 $25,000 $48,6604 $26,220 $54,0605 $28,320 $58,4406 $30,420 $62,7607 $32,520 $67,0808 $34,620 $71,400
NOTEOur income guidelines
are based on figures from Housing & Urban
Development (HUD) and represent up to 60% of median income for New
Castle County.This chart will be included in your pre-qualification packet.
examining your credit & finances
• Bankruptcy must be discharged for at least one year. • We examine your budget to ensure that you would be able to
pay your monthly bills and a HFHNCC mortgage.• Must have an Equifax, Experian, & TransUnion credit score of
at least 580.• If your pre-qualification application is approved, a fee of $25 will be
required to obtain a credit report
examining your credit & finances
• Lien search is conducted to ensure that you do not have any liens against you.
• 12-months of payment history submitted by landlord to HFHNCC.
• Letter from landlord verifying rental price & that you have made your monthly payments.
• Review of your bank statements.
current debt & delinquent debtcurrent debtOkay debt payments that you have been paying monthly• Must be 15% or less than your gross monthly income• Would not need to be paid off at settlement but must remain current
delinquent debt“Past due” debts; debts that are in collections• Cannot exceed $1500 at acceptance• Must be completely paid off before settlement
willingness to partner
what does willingness to partner entail?• Must be willing to fulfill all sweat equity requirements• Must be willing to attend all mandatory classes & meetings• Must be willing to work with $tand By Me as well as HFHNCC to
continue to better your financial situation• Pay off any delinquent debt• Increase credit score• Not accumulate any new debt
what does willingness to partner entail?• Must be willing to submit all requested documentation and / or
information (all items submitted must be truthful & submitted in a timely manner)
• Must be willing to submit to a home visit during the family selection process
• Must be willing to have open and truthful communication with HFHNCC staff & volunteers
• Must be willing to be an ambassador for HFHNCC
other factors to be qualified
what else does HFHNCC look at?
Both main applicants & co-applicants must be: At least 21 years old Employed or reside in New Castle County for at least one year Either a U.S. citizen or permanent resident Willing to submit to a sex offenders check Willing to submit to a criminal background check Having a criminal background does not mean automatic denial
overview of the application process
things to note about applying
• Do not wait to begin application. • Documents that you may need to request from other
parties may take time to receive.• HFHNCC is unable to return or make copies of any
documents that you supply when applying for the program.
things to note about applying
• Main applicants and co-applicants listed in application would mean that their name would be on the mortgage.
• Dependent(s) are anyone who is planning on living in an HFHNCC home but their name(s) would not be on the mortgage.
things to note about applying
• Applications can only be used during their deadlines.• If you are interested in applying, you cannot have someone
apply on your behalf.• Apply only when you want to live in areas where HFHNCC
is building.• Bedroom size is based off of family size.
application stages
There are four stages to applying for the HFHNCC home-ownership program:
1. Pre-qualification application2. Full application / underwriting process3. Family selection committee home visit4. HFHNCC board vote
reviewing the pre-qualification
packet
when turning in your pre-qualification application…
MUST INCLUDE:• Pre-qualification application filled out in its
entirety• All 12 most recent months of rental payment
history from landlord• 2 most current pay stubs from job(s) and /
or all other forms of verifiable income
NOTEIf any of these items are missing that do apply to you, your application will
be considered incomplete and we will NOT be able
to process it.
if you are not selected…
• You will receive a denial letter in the mail stating the reason why you were denied
• Don’t give up!• Take the necessary steps to be considered
• If you were denied for any reason relating to credit or finances, follow up with $tand By Me
• Attend another orientation and re-apply
If you are interested in applying for HFHNCC's Homeownership Program, please contact our Family Services Coordinator at: [email protected] or 302.652.0365 x118 to receive a pre-qualification application packet.