Applying for Habitat for Humanity Housing
Families in need of decent shelter apply to Western Monmouth
Habitat for Humanity (WMHFH). Our family selection committee chooses homeowners
based on their level of need, their willingness to become partners in the
program and their ability to repay the no-interest loan. We follow a
nondiscriminatory policy of family selection. Neither race, religion nor family
size is a factor in choosing the families who receive Habitat houses.
We are not now accepting applications for Habitat for
Humanity housing. If you are interested, and believe that you meet the
criteria, you can call the WMHFH office on 732-308-3400 and ask that your name
be put on the waiting list for an application. When our next application period
opens you will be mailed an application.
Selection Criteria
We have
three selection criteria that we use to objectively select families for Habitat
for Humanity housing:
1.
Need for adequate
shelter
2.
Ability to pay
3.
Willingness to
partner.
Habitat for Humanitys
purpose is to get families out of substandard housing, not to provide
homeownership opportunities for individuals who are able to rent adequate,
affordable housing. The WMHFH Board has approved objective criteria for
establishing need for adequate shelter. Housing
need must be evident because it is not possible for us to assist every one.
WMHFH seeks to assist families who have the goal of becoming independent
homeowners. We select low-income partner families whose present housing is
inadequate, who can make the required payments, but do not qualify for
conventional home financing. Families who qualify for other options should
pursue them.
There are income and
ability-to-pay criterion used to select families who cannot obtain conventional
mortgage financing but have sufficient income to afford the monthly payments
and other costs associated with Habitat for Humanity homeownership. We use factors such as a minimum income guideline, debt-to-income
ratio, monthly payment consistency along with other factors to determine
whether applicants have the resources necessary to purchase housing from
Habitat for Humanity.
The third criterion to
consider in the family selection process is the familys willingness to
participate as a partner with Habitat for Humanity. Objective criteria for
assessing willingness to partner used by WMHFH include:
The completion and return of the application for housing in a
timely fashion.
Acceptance of the down payment and closing costs requirements.
The acceptance of the affiliates sweat-equity requirements.
Returning all documents required as part of the family selection
process by the announced deadlines.
Qualifying Income
WMHFH considers an
applicants total household income. The total income includes wages of all
family members, as well as possible public assistance, child support or alimony
payments. Because Habitat for Humanity is a special purposes credit program for
purposes of the Equal Credit Opportunity Act, WMHFH can use housing need as a
selection criteria.
Just because a family
has filed for bankruptcy does not prevent them from qualifying for a Habitat
for Humanity home. After the bankruptcy has been discharged for four years, and
the family has established a solid record of paying their bills, the family is
again eligible to apply for Habitat for Humanity housing.
WMHFH does not
consider familial status or the number of family members in evaluating
applications for housing. The sole criteria are housing need, ability to pay
and willingness to partner. This means that you are eligible regardless of the
number of members in your family. If two applicant families have the same
income, the applicant family with more members will typically also have the
greater need.
Need
for Adequate Shelter
The
following factors are used to determine whether the present housing of
applicants is inadequate and whether there is a need WMHFH can address:
A . Structural
safety, integrity and mechanical function. Present physical dwelling can be
considered
inadequate if:
1.
Repairability
a.
Head(s) of
household, family and friends are unable to readily repair deficiencies.
b.
Landlord is
consistently unwilling to complete necessary repairs.
c.
Repairs cannot be
made as documented by building inspection officials.
d.
Heating system
does not provide for healthful/comfortable living.
e.
A wood burning or
kerosene heater is primary source of heat.
f.
Insulation is not
sufficient to maintain minimal comfort even after correction.
g.
Air infiltration
at doors, windows, etc., cannot be stopped even after weatherization.
h.
Gas/electric
bills are consistently in excess of $150 per month.
i.
Need for a
special indoor environment has developed (e.g., air purity, temperature) and
present home cannot be readily adapted.
2.
Plumbing
a.
There is not a
continuous supply of safe water.
b.
There is not a
safe/sanitary method of sewage disposal.
3.
Electrical
a.
Supply is not
reliable. Panel and service are incapable of handling load. Breakers are
consistently tripping or fuses are consistently blowing after use corrections.
b.
Wiring poses a
threat to safety (e.g., fire, shocks).
4.
Safety
a.
Access to street,
yard, parks or playgrounds is hazardous.
b.
There are
unavoidable dangers to children.
c.
Immediate
physical environment contains unremovable hazardous or toxic material.
d.
There is no ready
means of egress from a basement bedroom.
5.
Accessibility
a.
Uncorrectable
barriers to physically challenged family members exist.
B. Size
of living quarters. Present dwellings size can be considered inadequate if:
1.
In general, more
than three family members share a bedroom.
2.
School-age
children of opposite sex share a bedroom.
3.
Each family
member has 100 square feet or less space in which to live.
C.
Temporary housing. Present living situation can be considered inadequate if:
1.
Family has
tentative living arrangements with relatives or friends.
2.
Family is living
in a transitional housing facility or a motel.
3.
Family is living
in a house that is being condemned, sold or moved.
4.
Family is losing
its lease, certificate or voucher due to uncontrollable circumstances.
5.
Family is living
in a car, tent or similar quasi-homeless situation.
D. Cost
of housing. Present housing situation can be considered inadequate if:
1.
Family is paying
more than 50% of its gross income for rent or house payment, including taxes
and insurance (not including utility and phone costs).
F.
Conventional financing. A family can be considered to meet this criteria if:
1.
Family has
applied for other available housing programs and been denied.
2.
Family is unable
to obtain conventional financing from banks or other markets.
3.
Family has no
marketable assets that could be used to obtain a conventional loan.
Certifying
the need for adequate shelter
The
following methods and resources are used to determine actual housing need:
1.
Information supplied
on homeowner application.
2.
Freehold Area
Habitat for Humanity Current Housing Evaluation form completed on interview
visit.
3.
Documents from
building inspection office.
4.
Utility
billsverify currency of payments as well as costs.
5.
Rent or house
payment stub.
6.
Medical
documentation of special need.
7.
Total income
verification from documents used to ascertain ability to pay.
8.
Advice from a
construction committee member (optional).
Ability to Pay
The
following factors are used to determine whether applicants have resources
necessary to purchase housing with Freehold Area Habitat for Humanity. We can
only accept documented income.
A . Minimum
income guideline. A family can be considered to have the minimum income
necessary
if:
The prospective WMHFH
mortgage payment, real estate taxes, insurance and utility payments do not
exceed 33% of the familys total gross income
The familys reliable source
of income is composed of (1) employment pay; (2) public assistance and/or (3)
income revenue from assets and/or other documented source. Child support
payments are used in computing minimum and maximum income, and the reliability
of these payments is evaluated.
B. Upper
income guideline. A family can be considered to be within our guideline if:
Familys total gross income,
presently calculated, does not exceed 70% of the median income for Monmouth Ocean
County based on family size. Median income limits are
based on the data published on The Department of Housing and Urban
Developments website (http://www.huduser.org/.
C.
Debt-to-income ratio. A family can be considered to be within our guideline if:
The familys total debt
payment does not prohibit the family from paying for child care, food,
clothing, transportation, education, health insurance and care, house
maintenance and other items critical to basic living. Ideally, debt payments
each month, including the familys projected house payments to WMHFH, the
familys monthly debt payments should not exceed 40% of the familys monthly
income.
D.
Monthly payment consistency. A family can be considered to meet this criterion
if:
The family has demonstrated
ability to make regular monthly payments for rent, utilities and other credit
obligations.
E.
Bankruptcy, liens and judgments. A family can be considered to meet this
criterion if:
The family has no liens or
judgments that cannot be cleared prior to closing.
The
family has not declared bankruptcy within 4 years of application review, and
any bankruptcy has been discharged at least 4 years. A copy of bankruptcy
discharge documents is required in all cases of previous bankruptcies no matter
how long ago.
F.
Continuity of Income. A family can be considered to meet this criterion if:
The source(s) of income can be
reasonably projected to last 3 years or longer.
Public assistance payments are within
the 5-year Federal and New
Jersey maximum time
limit, and will continue for at least 3 years. In other words, public
assistance will not be terminated within the 3-year income projection time
period due to reaching the 5-year lifetime maximum.
F.
Closing costs. A family can be considered to meet this criterion if:
Family currently have or can
reasonably save the amount of money that will be needed for payment of tax
escrow, utility deposits, homeowners insurance premium, and other incidental
expenses occurring at time of closing.
Certifying
the ability to pay
The
following methods and resources are used to determine actual ability to pay:
Information given on the
homeowner application.
Employment paycheck stubs.
FannieMae Verification of
Employment form
FannieMae Verification of
Bank Deposit form
Verification of Public
assistance income documents.
Bank references.
Credit reports and credit
references.
IRS tax forms. The board
requires a verification of the familys tax returns for the last two years (Tax
documents are used to confirm need, assets and accuracy of application, not
income eligibility.)
Records of liens and
judgments.
Rent receipts and copy of
lease or rental agreement.
Landlord statement
Divorce/separation papers if
applicant states that he/she is separated or divorced.
Proof of residency within the Freehold Regional High School
District determined from home visit.
Proof of work within the Freehold Regional High School District
determined from verification of employment document.
Additional
Considerations Immigration and residency status
WMHFH only accepts
applicants that are citizens or permanent residents of the United States.
Willingness
to Partner
The following
factors are used to determine whether families are willing to partner with
WMHFH for Humanity:
A.
Eagerness. A family can be considered willing if the family:
Took initiative to obtain an
application and fill it out completely.
Readily engaged in a home
visit.
Members attempted to attend
WMHFH functions.
Provided necessary
documentation.
Is comfortable with credit
and landlord reference evaluations.
Members expressed desire to
make this community their permanent home.
B. Understanding. A family can be considered willing if
they:
Participated in
an explanation of what WMHFH is and is not.
Are pleased with
WMHFHs basic house design.
Understand that
they are responsible for care of their home.
C.
Realization. A family can be considered willing if they realize:
Sweat-equity
requirement and its demands.
The implications
of a highly-publicized program.
That they must
make payments monthly without default.
Expectations
spelled out in the letter of acceptance.
The equity
sharing mechanism in their deed.
That WMHFH needs
them as an active partner.
Certifying
Willingness to Partner
The
following methods and resources are used to determine willingness to partner:
Information given
on the homeowner application.
Information gathered in
interview.
