| Ability To Pay |
The following factors are used to determine whether applicants have the resources necessary to
purchase housing with Habitat for Humanity.
1. No other way to meet the need for a decent house as determined by the inability to secure a
conventional market loan and/or ineligibility for a bank long-term house mortgage.
2. Household income is not threatened by home ownership, e.g. the source of the household income
stops or decreases if the applicant owns a home.
3. The family’s total debt payment (excluding the projected house payment to Habitat) does not
prohibit them from paying for childcare, food, clothing, transportation, education, health insurance and
care, house maintenance and other items critical to basic living. Ideally, debt payments each month
(excluding the projected house payment to Habitat) should not exceed 5-10% of the family’s monthly
income.
4. Amount of Income
a. Monthly income should be between 100% and 125% of the guideline. (See attached guidelines).
b. Ability to pay a monthly mortgage payment of approximately one-fourth of the family’s combined
monthly household income.
c. Ability to pay insurance, taxes, utilities, and maintenance expenses in addition to the monthly
house payment.
d. Ability to pay a minimum of 1% of the value of the Habitat house as a down payment
e. Ability to pay closing costs and one year’s insurance in advance. (The applicant should be able to
potentially save a small amount of money to be used to pay utility deposits, homeowner’s insurance
premiums, moving costs, and other incidental expenses occurring at the time of closing).
f. Ability to demonstrate a history of financial responsibility. (Financial and credit references will be
requested and verified).
5. Demonstrated the ability to make regular monthly payments for rent, utilities, and other credit
obligations.
6. Stability of current job/income exists – minimum of 6 months with current employer; likelihood of
staying with the job; and stability/longevity of other income received (i.e. child support, Social Security,
and other Public Benefits).
purchase housing with Habitat for Humanity.
1. No other way to meet the need for a decent house as determined by the inability to secure a
conventional market loan and/or ineligibility for a bank long-term house mortgage.
2. Household income is not threatened by home ownership, e.g. the source of the household income
stops or decreases if the applicant owns a home.
3. The family’s total debt payment (excluding the projected house payment to Habitat) does not
prohibit them from paying for childcare, food, clothing, transportation, education, health insurance and
care, house maintenance and other items critical to basic living. Ideally, debt payments each month
(excluding the projected house payment to Habitat) should not exceed 5-10% of the family’s monthly
income.
4. Amount of Income
a. Monthly income should be between 100% and 125% of the guideline. (See attached guidelines).
b. Ability to pay a monthly mortgage payment of approximately one-fourth of the family’s combined
monthly household income.
c. Ability to pay insurance, taxes, utilities, and maintenance expenses in addition to the monthly
house payment.
d. Ability to pay a minimum of 1% of the value of the Habitat house as a down payment
e. Ability to pay closing costs and one year’s insurance in advance. (The applicant should be able to
potentially save a small amount of money to be used to pay utility deposits, homeowner’s insurance
premiums, moving costs, and other incidental expenses occurring at the time of closing).
f. Ability to demonstrate a history of financial responsibility. (Financial and credit references will be
requested and verified).
5. Demonstrated the ability to make regular monthly payments for rent, utilities, and other credit
obligations.
6. Stability of current job/income exists – minimum of 6 months with current employer; likelihood of
staying with the job; and stability/longevity of other income received (i.e. child support, Social Security,
and other Public Benefits).
| Habitat For Humanity Greater Peoria Area • 931 N. Douglas Ave., Peoria, IL 61606 • Phone: 309 676-6729 • Fax: 309 676-6409 |
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| Building Homes In Partnership With God's People in Need |