Need for Housing
Ability to Pay
Habitat homebuyers eventually become homeowners; when this transition happens, they pay Habitat a no-interest monthly mortgage payment. We never want to place a family in a house they cannot afford. We look for steady monthly income, additional income streams, rent history, no excessive debt, current and previous legal activity, and ability to save for closing costs of mortgage. Click here to view income guidelines.
Willingness to Partner
Partnering with Habitat requires an enthusiastic commitment for being part of the program. Participation requires a minimum of 450 hours of sweat equity, which is unpaid labor used to build a homebuyer's house and the homes of others. A portion of the sweat equity is mandatory monthly workshops that prepare homebuyers for successful homeownership through courses in financial literacy including interactive budget education, home maintenance, and basic DIY skills. Homebuyers also participate in community enrichment by volunteering in various capacities in the Southern Indiana community.
Other Factors We Consider
We will run national-level credit, criminal background, and sex-offender registry checks. Those living or working in Clark and Floyd counties will be given preference. Typical applicants include those who cannot secure a traditional bank loan and are working toward a more stable life by seeking a hand-up, not a hand-out.
Habitat will not offer assistance on the expressed or implied condition that people must adhere to or convert to a particular faith, or listen and respond to messaging designed to induce conversion to a particular faith.
Habitat Program Description
Once a complete application is received, it is reviewed by the Family Selection Committee which examines finances, obtains employment and landlord verification, and conducts a thorough financial and criminal background check. Based on these results, a home visit is scheduled. The committee may then make a recommendation to the Board of Directors for full approval and induction into the program. Participation in ‘sweat equity’ activities begins which includes financial and homeowner education, participation in the home build days, and other community enrichment experiences. Once the building project is complete, homebuyers will complete a full mortgage process as conducted by Habitat for Humanity Clark & Floyd Indiana as the mortgage holder.