The Three Tenants of Habitat for Humanity’s Homeownership Program QUALIFY PARTNER PAY

Just like a traditional mortgage, applicants must meet various qualifications, including having a need for our services. We look at 4 living situations to determine need:

Each family accepted into the program is required to: Have an open & honest relationship with Habitat.

Qualify for a 30-year mortgage at 0% by having stable, verifiable income sufficient to support a monthly mortgage payment and your other expenses.

(HUD guidelines)

• Substandard Conditions

• Temporary/Transitional Housing

• Overcrowding

• Cost-Burden

• Attend our 13-week Homebuyer Education class

• Complete 350 sweat equity hours

• Start a savings plan and have $1,000 emergency fund in a savings account. Will be monitored

• Pay $2,000 earnest money toward closing costs

• Make monthly mortgage payments on time!

• Meet with Memphis Habitat Homeownership Service Manager regarding issues around on time payments.

Applicants Must Have Enough Income to Pay Their Current Debt and the New Mortgage Payment

How to Qualify

Housing Expense Ratio = 30%

To calculate, divide your new monthly mortgage payment by your monthly gross income (the amount you earn before anything is taken out). The result should not exceed 30%.

Debt To Income (DTI) Ratio = 43%

To calculate, add up all your current expenses & bills + your new mortgage payment. Divide that total by your monthly gross income. The result should not exceed 43%.

Note: Depending on our funding source, a 620 credit score may be required as well as lower DTI and Housing Expense Ratios.