Still have a question? Visit our website at www.richmondhabitat.org/homeownership

or by phone at 804-232-7001, x115.

Application Submission Process .……………………….…….……………...…..…...…..…. page 2

About Habitat ………………………..………………………….……….………..….………...………. page 3

Documents Needed to Apply …………............................................................….. page 4

Qualification Questionnaire / Income Guidelines / Habitat for Heroes ....... page 5

Frequently Asked Questions ..………………..……………………………………....……...... page 6

Homeownership Program

Information Packet

2020 Applications Accepted

March 1st through March 31st

Homeownership Application Submission Process

Thank you for your interest in Richmond Metropolitan Habitat for Humanity’s Homeownership Program. Follow the steps below to submit an application to purchase an affordable home through Richmond Metropolitan Habitat for Humanity:

1. Applications accepted, March 1st - 31st, 2020 at 4:00pm.

2. Visit our website at www.richmondhabitat.org/homeownership.

a. Review the program criteria in this packet. b. After February 15th, review list of available properties listed on our

website or on the application.

3. Visit each home in person and select the top 3 homes you wish to apply for.

4. Please read and fill out all parts of the application carefully and completely.

5. Gather documents using the list of Documents Needed to Apply on page 4.

6. Include $30 per applicant in the form of a money order for the program fee. Applicant and co-applicant must each submit the $30 fee. Household members who are dependents are not subject to a program fee.

a. Please make money orders out to Richmond Metropolitan Habitat for Humanity (RMHFH).

7. Mail or bring the completed application, copies of documents & money order to: Richmond Metropolitan Habitat for Humanity 2281-A Dabney Rd. Richmond, VA 23230

8. You will be notified by mail within 30 days after submission of your application’s status. PLEASE NOTE: We strongly recommend you located all Phase 2 documentation prior to receiving your letter.

What is Habitat for Humanity? Habitat for Humanity is a nonprofit organization that helps families build strength, stability and self-reliance through homeownership. RMHFH works with individuals and families that demonstrate a need for housing, the ability to pay a mortgage and are willing to partner with us. Construction of each house is a cooperative effort between volunteers, house sponsors and the buyers of the house. Homes are sold to the buyer with an affordable mortgage.

Apply to purchase an affordable Richmond Metropolitan Habitat for Humanity home. There are several areas that qualify a future Richmond Habitat homeowner:

Need There must be a demonstrated need for housing, which include one or more of the following:

• Currently living in overcrowded or unsafe conditions • Currently living in substandard housing or homeless • Current housing expenses are more than 35% of your income • In need of handicap accessibility • Unable to qualify for a traditional mortgage • First-time homebuyer (cannot have owned a home within the past three years)

Ability to Pay

• Future homeowners have an income of $30,000 per year and up, depending on family size. Income includes wages, Social Security, Social Security Disability, child support and other forms of consistent, reliable income. See income chart on next page for details.

Willingness to Partner • Willingness to Partner with Habitat by doing approximately 16 hours per month in “sweat

equity.” Total of 350 hours is required by closing. Some of these hours can be donated by friends and family.

• Attendance at Homebuyer Club classes • Attend monthly meetings and demonstrate a commitment to strengthening your financial

readiness (such as budgeting, spending, saving, and credit).

Residency • Buyers of the house must be a citizen or legal permanent resident of the United States.

The families who apply to purchase homes from Richmond Metropolitan Habitat for Humanity will be selected by the Homeowner Services Committee in a way that does not discriminate on the basis of race, sex, color, age, handicap, religion, marital status, or because all or part of the applicant’s income is derived from public assistance programs.

Documents Needed to Apply

1st Phase Documentation In March, submit the most recent copies of applicable documents below with your completed application: □ Paystub(s) from the last 30 days prior to application submission for all household members 18 and older

□ Most recent 2 years tax returns, including W2’s/1099’s

□ Most recent Retirement, SSI letter and/or Disability award letter

□ Most recent court order for child support. (supporting document examples, bank statement or pay card history showing regular payments to calculate as income)

□ Current lease or most recent lease held in the past two years

□ Payday and/or title loan statements

□ $30 money order for one applicant or $60 if there is a co-applicant

2nd Phase Documentation □ Last 6 month’s bank statements for all checking and savings accounts

□ Driver’s License, State ID or Passport

□ Copy Social Security Card for all household members

□ Birth certificate(s) and/or permanent resident cards for all household members

□ Divorce Decree, if applicable

□ SNAP benefit award letter, if applicable

□ Certificate of Release or Discharge (DD214), Veterans only

PLEASE NOTE: We will be unable to process an incomplete application. Please provide copies of the necessary applicable information that we may keep.

Applicants meeting income and credit criteria will be notified by mail. 2nd Phase Documentation below will be requested at that time and must be submitted within 2 weeks.

Qualifica�on Ques�onnaire

You may qualify if you answer yes to all questions below:

Yes No

I have rented in the past 12 months, but have not owned a home in the past 3 years or experienced a home foreclosure in the past 7 years.

I currently live in overcrowded or unsafe conditions, would be homeless if not for friends or family, in need of handicap accessibility, cannot qualify or a traditional mortgage, or pay more than 35% of my gross income for rent and utilities.

I am willing to invest 350 hours of my own time volunteering (sweat equity) to help build my house, houses of others, volunteer at the ReStore, attend budgeting meetings and Homebuyer Club classes. (200 hours for qualifying Veterans)

I do not have judgments or can pay all judgments within 30 days of applying.

I have no collections or can present a realistic plan to pay all collections off within 12 months.

I have never filed bankruptcy or it has been 5 years since my chapter 7 was discharged or 3 years since my chapter 13 was discharged.

I understand at closing, I will pay a down payment of $1000 or 1% of the purchase price, plus $500 for my 1st year’s homeowner’s insurance at closing.

My family's income falls within the chart below.

Income Guidelines (based on gross household income)

Family Size 1 2 3 4 5 6 7 8

Maximum Annual Household Income $48,400 $55,300 $62,200 $69,100 $74,650 $80,200 $85,700 $91,250

Minimum Annual Household Income $30,000 $30,000 $30,000 $30,000 $30,170 $34,590 $39,010 $43,430

**Habitat for Heroes** Special Veteran Discount

Qualifying veterans commit to performing only 200 hours of sweat equity and will receive a 25% discount in forgivable financing off the appraisal value.

Richmond Metropolitan Habitat for Humanity Homebuyer FAQs

Are Richmond Metropolitan Habitat for Humanity houses free? No. Approved families purchase their homes from Richmond Metropolitan Habitat for Humanity and pay an affordable mortgage.

Can I apply if there are no children in my household? Yes. Richmond Habitat does not require homebuyers to have children in order to qualify.

How much is the monthly mortgage payment? The monthly mortgage payment will not exceed 25% of the borrower’s (and co-borrower’s) gross monthly income. The average monthly mortgage payment with Richmond Habitat is approximately $600 and includes a principal payment (to pay down loan), real estate taxes, homeowners insurance and HOA dues (if applicable).

When and where are applications available? Applications are available from February 15th until March 30th. They can be found during those times on our website, www.richmondhabitat.org/homeownership, at our office, and ReStore locations.

When are applications accepted? Applications are accepted during the month of March by 4:00 pm on the last day of the month. Applications with copies of supporting documentation can be submitted in person during normal business hours, by mail or emailed to jpresley@richmondhabitat.org.

How long is the application process? When will I move into my home? The application process usually takes 2 to 3 months. Once you are accepted into the program, the process from beginning sweat equity to when you move in usually takes 12 to 18 months.

What if I have bad credit? We do not look solely at credit score. As long as your financial history shows consistency in paying bills on time or you can pay off collections within 12 months of applying, your application will be considered. Judgments need to be paid in full within 30 days of applying.

How can I check my credit reports for free? A free copy of your Equifax, Experian and Transunion credit reports can be obtained, online or by mail, by going to www.annualcreditreport.com.

What happens if my application is denied? If applicants do not meet Richmond Metropolitan Habitat for Humanity’s criteria and are not accepted into the program, they will receive a letter with the reason and be provided a list of other resources, if appropriate. There is no limit to how many times someone can apply.

I know someone who I think will qualify for a home. What can I do? Please direct your friends to our website at www.richmondhabitat.org or encourage them to call our office at 804-232-7001 ext. 115.