I have really bad credit OR I am afraid of what is on my credit OR since my divorce, the credit situation is bad... what do I do?
Even with bad credit, you can still apply and Habitat will tell you if the credit should be fixed before proceeding. Judgments and liens should be paid, and you will be asked about collections. We do not expect perfect credit. Check out the information the Attorney General of Michigan has about free credit reports that you are entitled to in Michigan.
We strongly suggest that you visit Greenpath, a nonprofit credit counseling agency in downtown Monroe. Call them at 734-457-0370 and ask for analysis of your financial situation. Even if you do not apply for Habitat homeownership, or apply at a later date, this will help you to face your credit problems, eliminate them, and understand how they affect your life.
Most of my credit problems are because of medical bills, what can I do?
First, do not ignore the medical bills, a hospital or doctor can garnish your wages. However, Habitat does not count those medical bills against you. We count everything else, though. Greenpath can help with these bills, too.
I have a bankruptcy in my past! What does this do to my chances of becoming a homeowner?
It depends. If the bankruptcy has been discharged over 2 years ago and you have since lived a more financially balanced life, there may be no problem at all. However, a brand new bankruptcy with no new financial history may be difficult. Our family selection committee may not see you as a good risk because you haven't proven you can manage your money differently.
However, please write on a separate sheet why you declared bankruptcy and what you have done since. You can expect questions about it. Many homeowners have a bankruptcy in their past.
Are the homes given away to the homeowners?
No, the homes are sold to the homeowners families and they pay a monthly mortgage payment with taxes and insurance. The house payment will not equal more than 30% of gross income.
How much is a monthly mortgage payment?
Habitat of Monroe County's mortgage payments are affordable, around 30% of your monthly gross income.
How will I know if I am chosen or not? OR If I'm not chosen as a homeowner will I know why?
All applicants will receive a letter stating why they were not chosen and what can you do to better your chances of being chosen later. We strongly encourage you to fix the problems listed and reapply the next year. Many homeowners have applied 2 or 3 times before being chosen.
Another group of applicants will be qualified but we cannot build enough homes to satisfy the requests. The other families chosen before you have been determined to have a greater need for a house at this time. We strongly encourage you to apply later.
The executive director welcomes calls after receiving a letter and discussing with her some suggestions on any part of your application.
Where do you build the homes?
Habitat builds in many places in Monroe County: many neighborhoods all over the county. If you do not want to live in a certain place or you strongly desire to live in a certain area of the county, please state this in writing or in the interview discussion with the family selection committee.
If Habitat builds there, we will tell you and you may not want to be considered for homeownership at this time. It comes down to your choice after we show you the neighborhoods we will be building in. You will have 2 chances to turn down homes offered to you.
What if I get a better job after I am officially chosen?
Habitat wants you to do better in your life, you will not be de-selected.
What does it take to be de-selected as a homeowner?
1. Lying or not being truthful in any way on any part of the application.
2. Showing an unwillingness to partner. (for instance by not completing the sweat equity or getting down payment ready)
3. Loss of income that would make it difficult or impossible to make a house payment.
Who chooses the homebuyers?
Habitat for Humanity of Monroe County has a Homeowner Selection Committee, which is comprised of community volunteers. With the help of the executive director, they accept applications, add the income and look at expenses, run credit reports, look at all the Habitat criteria and then personally interview all potential homeowners.
The selection of the homebuyers who will purchase homes from Habitat for Humanity of Monroe County will be done by Habitat's Homeowner Selection 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
All the decisions are based on Equal Housing Laws, which Habitat adheres to strictly.
Do I have to be a resident of Monroe County for the 12 month period to qualify?
No, you do not have to be a resident of Monroe County to qualify for a Habitat House in Monroe County.
Do you accept applications from: Families who do not have children? Unmarried couples? Large families? Potential co-owners that are relatives other than marriage (mother-grandmother/brother and sister, etc)
Yes
My children receive Social Security, how does this affect my income?
We count all income that will be in the family for 3 years or more. Write on a separate sheet and tell us how you intend to replace that income if it expires within three years.
I just got a call to arrange an interview! Does this mean I am chosen as a homeowner?
No. Family Selection Committee interviews three times the amount of the final choices.
I have a child living with me that is 18 years old or older, does he/she need to complete sweat equity?
If your child is 18 years old or older and a full time student, they must contribute 50 swear equity hours.
I have a boyfriend/girlfriend who will not be a co-owner, but will be living in the house, how do you handle this?
All the household income must be counted, including his or hers. Then the person has to complete the sweat equity. They do not need to be a co-owner.
I'm not sure if I should tell you about a boyfriend/girlfriend that will be living in the house.
Please don't lie to us. That would be considered a reason for de-selection as a homeowner. Just be upfront about it. We are not judgmental about your life (and we can't be, according to law), we just want to know the whole family that will be living there and plan accordingly.
