Becoming A Homeowner

Becoming a Habitat Homeowner is a Partnership

Habitat builds a home in partnership with a family. The family helps with the physical labor of building the house.  At the completion of construction, and satisfaction of partner requirements, the family purchases the home by borrowing money from Habitat. Habitat holds the mortgage. The loan is paid off over 15 to 20 years at no interest. There is a monthly mortgage payment consisting of principal (repaying the loan), taxes (real estate), and insurance (homeowners).

The potential applicant family should be aware that the estimated current cost of a Habitat home (in 2011) is approximately $80,000. This means that the Partner Family should have sufficient income to make a monthly mortgage payment (which includes taxes and insurance) in the range of $350 to $400 per month..


What we look for in the partner family

• The family has gainful employment or income of some type.
• The family has been a resident of Jackson County, AL for one year.
• The family currently lives in modest or substandard living conditions and could significantly benefit from a Habitat home.
• The family ordinarily would not qualify for home ownership through normal credit institutions.
• The family is willing to partner with us by working 300 “sweat equity hours”. (See, also, other “willingness to partner” criteria listed below.)
• The HFHJC Board judges that the family will be able to make the monthly mortgage payment.
• The family will commit to making regular mortgage payments until the mortgage is paid off.

How to apply

1. Contact us at 256-574-4138 and leave a message to obtain an application.
2. Fill out the application completely and return it to this affiliate. Our address is:
   Habitat for Humanity of Jackson County
   PO Box 922
   Scottsboro, AL 35768
3. If you need any help at all in filling out the application one of our volunteers will be happy to help you.  Just call 256-574-4138  and leave a message.

What happens after a fully completed application is received.

• The family selection committee reviews the application to see if the basic criteria are met.
• If the criteria are met, an interview will be scheduled and conducted by members of the Family Selection committee, usually at the family's current home.
• At this point a preliminary evaluation will be conducted. The applicant family will be notified of the evaluation.
• Subsequent steps will include a credit check with credit monitoring agencies. 
• We make every attempt to inform the applicant family of any areas of concern that we have. Some areas of concern may include the family’s current job history, the family’s current income, the family’s current amount of debt and any unusual items in the background check.
• At some point in time, usually a year before the next house is scheduled to be completed, a prospective family is Selected by our Board of Directors to become a Partner Family.

Willingness to Partner

Other examples of objective criteria for assessing willingness to partner include, but are not limited to, the following:

• The family has enough money saved, or will be able to save by closing, to pay a modest down payment. Currently (2011) the down payment is $1200.
• The family is willing to move where the house will be built.
• The family notifies us of any change in family composition.
• The family notifies us of negative changes in economic circumstances, including any reduction of income.
• The family notifies us of any changes in contact (address, phone number, etc.) information.
• The family agrees to avoid new consumer debt during this process.
• The family has a plan for completing the 300 sweat equity hours.