How to become a Habitat Homeowner :

Family Selection Guidelines

The Family Services staff and committee work together with prospective homeowners to answer questions, review applications, and partner with families throughout the entire process of becoming a Habitat homeowner. Family selection is based on the following guidelines: Families must be:

1. In need of simple, decent, affordable housing.

• Structural survey analysis of current housing
• Overcrowding (number of persons in each bedroom, number of persons sleeping in rooms other than bedrooms)
• Prospective homeowner pays more than 30% of their income on housing

2. Able to pay the no-interest mortgage.

• Gross income must fall within 30-80% of HUD's area median income. (see maximum income levels table below)
• Must have had any bankruptcy filing discharged 2 years prior to applying for a HFHD home. Any bankruptcy filed within the past 7 years must be accompanied by a written explanation of the facts and circumstances leading to their filing.
• Cannot have owned a home within the last year.
• Must have lived in the Detroit service area for at least 6 months.
• Monthly debt plus monthly house payment is less than 40% of monthly income.
• Credit reports will be evaluated.
• Demonstrated past, present and projected stability of income for at least 2 years.

3. Willing to partner with Habitat and complete 250-400 hours of sweat equity.

• A maximum of 100 hours may be completed by 3-4 proxies, as determined by the potential homebuyer in their sweat equity plan,
• Will be able to contribute at least 20 hours per month to achieve a minimum of 300 sweat equity hours within one year of signing the Partnership Agreement,
• At least half of the sweat equity hours must be done by the potential homebuyer(s) on their home or the home of another Habitat homebuyer,
• Time spent in required homeownership classes will be counted. All required sweat equity hours must be completed before move-in.
• Will participate in publicity for HFHD.

Income Levels

In order to qualify, applicants must have a minimum yearly income of $22,000 and must meet the following maximum income guidelines for family size. If your income exceeds the maximum guidelines in Column I, you may still qualify for homeownership, no down payment assistance provided however. See Column II for these maximum income guidelines.

What's involved in becoming a Habitat homeowner:

1. Fill out the pre-application form - requires Acrobat Reader (PDF-112K/2 pages) and send to the office by fax at 313-371-3400 or US Mail at Habitat for Humanity Detroit, 14325 Jane Street, Detroit, MI 48205.
2. Once your pre-application form is received and reviewed, you will be notified if you qualify to receive an invitation to the orientation for prospective homeowners. All denials will receive a letter detailing reasons for not receiving an invitation and are welcome to re-apply for an invitation after correcting (1.) Damaged Credit or (2.) Meeting Income guidelines.
3. Complete applications are reviewed.
4. Family Selection Committee decision on prospective homeowners.
5. Board of Directors decision on prospective homeowners.
6. Signing of Homebuyer's Agreement.
7. Family Support Partner assigned to provide support, guidance, and education to family during and after the house build.
8. Construction of the home and sweat equity.
9. Training - homeowner must attend 6-10 homeowner training classes and receive certificate of completion.
10. Closing and Dedication - after home is completed, closing and house dedication will be scheduled. Earnest money of $1500 must be saved prior to closing.
11. Nurture/Support - Family Support Partner continues followup with family after move-in.

Sweat Equity

Sweat equity may be earned by friends and family who credit their time toward the applicant. However, only 100 hours can be earned by proxies designated by the homeowner.

Tools and equipment are provided, but future Habitat homeowners are recommended to bring work gloves, safety glasses, hard soled shoes and any other personal safety items. Habitat staff members and professional volunteers supervise all work. Be sure to bring your own lunch.

Log all hours worked for your records. Persons who do not maintain their sweat equity log will not receive credit for their hours after the fact. Applicants are advised not to solicit volunteers at the work site to donate hours to your application.

Children under 16 are not eligible to earn sweat equity hours. For safety reasons, please do not bring them to the work site. Children over 16 require adult supervision at all times on the work site.