Habitat Homeownership

These questions might help determine your “ability to pay” based on bend-redmond habitat for humanity guidelines or Third party lender standards.

1. Have you owned a home in the last three years?
   Many first-time buyer programs, such as the matched savings program, require 3 years post-ownership in order to qualify for funding. This is not an issue however, if you answered yes
2. Is your income steady?
   A Steady Income means: no gaps in income stream for 2 or more years
3. Are there gaps in your income stream for short periods once per year?
   Short periods are defined as 3 months or less
4. Have you reviewed the sources of accepted/unaccepted income?
   Habitat considers the following in calculating income:

5. Have you paid rent on time for the past 12 months?
   In most cases, paying your rent on time won’t help your credit score. In fact, the FICO score would ignore the rental trade line even if it appeared on your credit report. On the other hand, falling behind on your rent could lead to an eviction which would hurt your credit score and your ability to rent or get credit cards and loans in the future. There is an exception: some landlords may report payments to Experian Rent Bureau. In those instances, rent payments can help your Experian credit score.
   
6. Is your utility payment history current?
   Your credit score isn’t helped by timely payments on your utility or cell phone bills. However, if your account becomes past due, it may be passed on to a collection agency who would then list the account on your credit report leading to a credit score drop.
7. Do you have any accounts in collections?
   If “YES” answer: We recommend that you begin credit counseling to establish goals for removing and/or paying off the accounts in collection.
8. Do you have a deferred student loan?
   If your loan is deferred, it is important that you have documentation regarding your deferred or income based payment plan, otherwise most lenders will assume 1-2% of the total loan amount as monthly payment.
9. Are you able to save at least $2,000 towards closing costs?
   We can assist you in signing up for a matched savings program. Your money will be matched three to one. In general, closing costs to purchase a home are estimated at around $10,000.
   
10. Have you paid rent on time for the past 12 months?
11. Is your utility payment history current?
12. Do you know what your Debt-to Income (DTI) ratio is?

Because our partnership program has education, savings and volunteer requirements we want to be sure to thoroughly review them with you. It is important that you understand and agree to the partnership and unique aspects of the Habitat program.

1. Have you applied for the Habitat Partnership Program in the past?
   We encourage re-applications!
2. Are you willing to volunteer (also called “sweat equity”) 500 hours?
   Each adult must complete 200 hours. The remaining hours can be donated by friends or family. Our volunteers are the foundation of Habitat for Humanity. We could not build affordable housing without volunteer commitment. It also increases pride in homeownership to be involved in the process.
3. Will you accept a decent and affordable home within the Bend city limits with the understanding that Habitat is not a custom builder?
   Bend-Redmond Habitat for Humanity pre-purchases lots and will sell to families as they are ready. Everyone completes the program at a different rate and we will fill the homes with the next “homeowner-ready” applicant/family. Therefore, you cannot pick your Habitat house or neighborhood.
4. Are you willing to help positively representBend-Redmond Habitat for Humanity?
   This may include sharing some personal information, such as your family story or pictures, to promote the Habitat mission and program through various forms of media. Prior to sharing this information, we will give you an opportunity to direct that such information not be disclosed through signing a Media Release Form.
5. Do you believe that showing pride in your home is a reflection of your lifestyle?
6. Are you able to commit time to homeownership, financial education classes and, or regular monthly meetings with a mentor?
7. Are you a team player?
8. Are you willing to put the time and effort into the maintenance of a home? Or are you ready to learn the skills it takes to do this maintenance?
9. Are you willing to make the commitment that goes into making a purchase and maintaining the investment?
10. Do you plan on staying in this area for an extended period of time?
11. Is everyone in your family supportive of this decision?
12. Wants vs. needs:  Am I willing to give up something to purchase a home?
    Bend Habitat pre-purchases lots and will sell to families as they are ready. Everyone completes the program at a different rate and we will fill the homes with the next “homeowner-ready” applicant/family. Therefore, you cannot pick your Habitat house or neighborhood.