Home Ownership - Family Selection Criteria

2010 Family Selection Criteria
Income Guidelines
Documents Required

The Pioneer Valley Habitat for Humanity Affiliate is part of a worldwide volunteer effort to build simple affordable homes to qualifying low income families.

You MUST attend an information session to receive an application to apply. See information session schedule. You MUST live or work in Franklin or Hampshire Counties for at least a year.

2010 Family Selection Criteria

Looking for an affordable opportunity to buy a simple decent home?

Here are the basic guidelines followed in qualifying families who obtain housing with Pioneer Valley Habitat for Humanity.

Pioneer Valley Habitat will look at three distinct areas of selection criteria when reviewing potential “homeowner partners.”

These selection criteria are:

1. Your family’s actual housing need based on the suitability of your current shelter.
   
2. Your income and ability to pay for a Habitat house.
   
3. Your willingness to participate as a Partner with Habitat.

To receive an application, you must attend one orientation session.

DETAILS BELOW:

I. NEED

A. You will be considered for a habitat home if your present housing is not adequate, and if you are unable to obtain adequate housing through conventional means.

Lack of adequate housing may include problems with the present structure, water, electrical or sewage systems, heating system, or failure to meet legal, safety, and/or health standards. If your present housing is overcrowded, or if the number of bedrooms is not sufficient for the number, ages and sex of your children, it is also considered inadequate.

B. Your present housing cost (especially if it is excessive in relation to your income), and its continued affordability will also be considered to determine need. You will be required to openly and fully discuss your financial situation with a Habitat interviewer.

II. ABILITY TO PAY

You must meet income guidelines. Habitat serves families whose incomes are not less than 30%, or more that 50% of the median income for Hampshire and Franklin Counties. HUD determines the median income; it changes from year to year and county to county, so you will need to consult our income guidelines, also on this website. Using 2010 figures, for example, a family of four would have to have an income between $23,450 and $39,100 at the time of application submission. Income guidelines are adjusted for family size.

Since you will be actually buying your home from Habitat, you must demonstrate your ability to make the monthly payments. This payment will include not only the mortgage payment, but also payments for real estate taxes, insurance, a utility allowance, and in the case of condominiums, a monthly condo fee. We will help you to determine if this payment will jeopardize your ability to meet all your other family financial obligations and expenses.

We will request a credit check from an independent agency, and verification of your income.

There is no interest on the loan for a Habitat home, and the house is sold at no profit. However, you will be required to make a $700 down payment, in seven $100 installments, beginning the first month after you sign the “Letter of Acceptance” and house construction has begun. Pioneer Valley Habitat finds pro bono lawyers to provide closing services, so closing costs are low.

III. WILLINGNESS TO PARTNER

A. When selected and approved by the Board, you become a “partner family” in the Habitat movement. To become a partner family, you must complete 16 hours of volunteer work with Pioneer Valley Habitat, which will count toward your total “sweat equity” contribution to be completed before becoming a homeowner. You will also be required to complete a First Time Homebuyer’s course with a local agency or bank; these hours will also count toward your sweat equity. Your assistance in the construction of your home and the homes of others is called “sweat equity”; this may include clearing the lot, painting, helping with construction, or landscaping. As a partner family, you must complete 250 hours of sweat equity for each adult who will live in the house to a maximum of 500 hours. A single parent must complete 250 hours. The Family Support committee will advise you of options and will oversee documentation of your sweat equity. In some instances, if a partner is disabled or otherwise unable to do physical labor, their mentor and the Habitat office will work out a modified alternative plan with the family.

B. From the time you move into your home, you will be responsible for maintenance and repairs of your home.

C. Once you are approved as a partner family and continuing through the first year after you move into your home, a representative of the Family Support committee will maintain an ongoing relationship with you. This may include financial counseling and will include household maintenance education.

Income Guidelines

Documents Required

Please submit all of the following documents that pertain to your situation with your completed application for homeownership. To do this will help us to review your application more quickly and efficiently.

1. Copies of signed Federal income tax returns for the last two years.
   
2. Copies of W-2 forms for the last two years.
   
3. A copy of your most recent pay stub.
   
4. Written proof of any other sources of income you list: child support, alimony, Social Security or disability payments, etc. Include the court decree where appropriate and proof of this income for three months.
   
5. A copy of your separation or divorce decree.
   
6. Verification of the rent paid to landlord.
   
7. Copies of your last two bank statements.

Thank you for your cooperation.