Families may call the Lakes Region Habitat office at (603) 279-4820 or email info@lrhabitat.org to be put on the list for the next selection sessions. The selection process involves:
- A pre-qualification appointment to review credit history, financial statements, and employment history, in a manner similar to that of most mortgage lenders.
- Habitat volunteers meet and visit with eligible applicants to understand their current needs and future goals.
- Eligible applications are presented to the Board of Directors for final approval.
- The Board of Directors always realizes that families present individual situations and can approve conditions to meet situations in a fiducial manner.
If you know of a family who is in need of simple, decent, affordable housing, please have them contact us for an application today!
How The Family Selection Process Works
The Lakes Region Habitat considers the following when selecting a family for a home:
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Is The Family Willing to Partner with Habitat?
Does the Family Have A Need for Adequate Shelter?
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A family selected for a Habitat home must have a demonstrated lack of adequate shelter. Existing shelter may be inadequate if one of the following criteria are met:
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Current shelter has problems with the heating system, water supply, electricity, bathroom(s), kitchen, structure, etc.
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Current shelter has an inadequate number of bedrooms as determined by number, ages, and gender of household members.
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The current neighborhood is unsuitable (unsafe or unsanitary).
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Other circumstances exist at current shelter which are detrimental to the health or welfare of household members.
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The family is unable to obtain a conventional or government-assisted mortgage loan to purchase a home. Applicant has proof of inability to receive other loans.
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The maximum household gross income is less than 50 percent of median family income for the community (exceptions to this limitation may be made by the Board of Directors on the basis of family size or special circumstances).
Does The Family Have The Ability to Pay for a Habitat Home?
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The family must have a minimum household gross income of 40 percent of the median family income for the community.
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A family selected for a Habitat home must pay a cash down-payment and closing costs totaling two percent of the anticipated mortgage amount. A selected family must begin monthly payments toward their down-payment as soon as they are approved by the Habitat Board. The full amount must be paid at least one month prior to occupancy. One hundred dollars must be received before construction on the family’s house can begin.
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The family must have the ability to make monthly house payments along with the current debt. The total mortgage payment, taxes, insurance, and all debt should not be greater than 36 percent of total household income. (Exceptions may be made on he basis of severe need for a home or other special circumstances.)
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The family must have a satisfactory credit history and references. Evidence of capability to pay off any and all bad debts and financial judgements must exist. All financial judgements must be cleared prior to closing. Payments on bad debts must begin immediately upon signing of the letter of acceptance.
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Household income must not be threatened by home ownership (i.e., household income must not stop or substantially decrease if the applicant owns a home).
Is The Family Willing to Partner with Habitat?
An approved applicant must be willing to partner with Habitat by:
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Completing 100 hours of sweat equity prior to construction starting on their home.
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Completing 400 additional hours of sweat equity before closing on their home.
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Maintaining their home after occupancy.
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Participating in Habitat’s nurturing program which includes financial counseling, household management education, and homeowner’s association meetings.
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