How to prepare for the Habitat for Humanity of Citrus County Homeownership Program

Christine Erick
Family Services Director

Preparing for a significant life event like purchasing a home involves engaging in a series of well-thought-out steps. You should take time when applying for a mortgage, which is exactly what you are doing when you complete the application for the Habitat for Humanity of Citrus County (HFHCC) Homeownership Program. Buying a home is a significant event – and expense – that requires careful preparation.

The first step is to visit our website at habitatcc.org and use our income calculator to ensure that you meet the income requirements based on family size. These income limits are also on our website for your review.

Take our self-assessment tool under our “Programs” tab along with reviewing our Homeownership Orientation. This will take you into a deep dive of the program to see if this is a good fit for you.

Obtain a copy of your credit report, which is available to you for free once per year, by visiting AnnualCreditReport.com. Your credit report is a complete accounting of your credit history including credit accounts, payment history and credit account status. This is a good time to review your credit report for any inaccuracies. If you find any, it is essential to address them ASAP as they can hurt your credit score.

Habitat does not have a minimum credit requirement. However, if you do not have any credit at all, you will be required to show non-traditional credit through a 12-month on-time payment history for car insurance, rental payments, telephone bills, etc.

We will look at your debt-to-income ratio to ensure you can comfortably make your mortgage payment. Habitat will not allow for a mortgage payment (including taxes and insurance) over 30% of your monthly gross income. Additionally, we will not allow for a mortgage payment coupled with your monthly recurring payments (credit cards, car loans, installment loans, etc.) to exceed 43% of your monthly income. Paying off credit card debt or installment loans will help you achieve a lower debt to-income ratio.

Be sure that you are making all your payments on time. Late payments lower your credit score, but it also paints the picture that you will not make your mortgage payment on time. Your mortgage payments go toward building the next home for another family.
Have money in savings. If you are currently not paying rent though proof of a rental agreement and/or receipt of payments, you will need to show some savings to demonstrate your ability to pay a mortgage payment.

Have a plan to complete the sweat equity requirements. Habitat for Humanity requires a minimum of 350 sweat equity hours to complete the program. Partner families are required to complete 20 hours per month until the closing of your home. This will require commitment and sacrifice.

If you are accepted into the program, you will be required to maintain your eligibility. We know how tempting it is to want to purchase furniture or that dining room table that you found for a great deal at the local furniture store, but acquiring new debt can increase your debt-to-income ratios and disqualify you from the program.

Believe it or not, getting a new job can affect your eligibility. Our first-time home buyer program is based on the number of individuals in the household and total monthly income. This is required for down payment assistance that is essential to making these mortgage payments affordable. The change in your income can affect your debt-to-income ratios, which in return affects eligibility.

The bottom line: knowing what to do and what not to do before applying for a mortgage is critical. To learn more about our program, you can register for our in-person orientation, which will be from 9:30 to 11 a.m. Saturday, Dec. 7, at the YMCA, located at 4127 W. Norvell Bryant Hwy., Lecanto. This is your golden ticket to scoop up all the details about what it takes to join our awesome program! Register online at https://tinyurl.com/yc3ds334.

If you cannot make the in-person orientation, visit our website under “Programs” and complete our self-assessment tool to see if you are ready to apply for our Homeownership Program or call our Family Selection Manager, Jess Ebert at 352-563-2744.

Christine Erick is the Family Services Director for Habitat for Humanity of Citrus County. Email her at [email protected].