• the family does not qualify for homeownership through conventional financing or any other special-purpose loan program;
• the family’s annual income is not more than 60% or less than 35% of the York County median income
• AND at least one of the following need-related factors must also be true:  The family is “cost-burdened,” defined as spending 50% or more of their income or housing and does not have the down payment for a home;  The family is not currently cost-burdened as defined above only because they are receiving temporary, non-sustainable financial support; Their current housing is “substandard” as defined by HUD (see below);  Their current housing is overcrowded; The family is living in temporary housing about which one or more of the following statements are true: The family is in a tentative living arrangement with relatives or friends; The family is living in a transitional housing facility or motel;  The family is living in housing that is being condemned, sold or moved;  The family is losing its lease, certificate or voucher due to uncontrollable circumstances; The family is living in a car, tent, or similar “quasi-homeless” situation 

Criterion 3: Ability to Pay

It must be true that:

• The family has a reliable source of income;
• The family’s annual income is adequate to make the monthly principal, tax, and insurance payments on Habitat’s affordable, zero-interest mortgage while also meeting their other debt and living expenses. For Habitat, this is defined as debt that does not exceed 40% of their income.
• The family has a credit history free of liens and judgments that would prohibit their ability to sign a mortgage and they have a demonstrated history of making payments on time.
• The family is able to save the small down payment required at closing and enough to meet the criteria for the Housing Alliance’s down payment assistance program.

 Criterion 4: Willingness to Partner

It must be true that:

• The family is committed to being a full partner in the construction of their home;
• The family understands Habitat’s “sweat equity” requirement and is willing to fulfill it;
• The family agrees to participate in all counseling sessions focused on home maintenance and financial management.

HUD Definition of “Substandard” Housing

HUD uses the term “substandard housing” when a housing unit does not provide safe and adequate shelter; endangers the health, safety or well being of a family in its present condition; has one or more critical defects; has a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding (The defects may involve original construction, or they may result from continued neglect or lack of repair or rebuilding); does not have operable indoor plumbing; does not have a usable flush toilet, bathtub or shower inside the unit for the exclusive use of a family; does not have electricity or has inadequate or unsafe electrical service; does not have safe or adequate source of heat; should, but does not, have a kitchen; or has been declared unfit for the habitation by an agency or unit of government.  About “Sweat Equity” “Sweat equity” is the term Habitat for Humanity uses for the hours applicants and homeownership candidates work on Habitat construction sites and in service to the York Habitat for Humanity organization. Applicants and candidates who are unable to perform physical labor due to disability will have other options available to them to fulfill this requirement. York Habitat for Humanity requires 225 hours of sweat equity per adult living in the household.   

A Step-by-Step Guide to Habitat’s Homeownership Program 

Each step must be completed before continuing to the next. The steps are: 

The Homeowner Information Meeting - Community members interested in Habitat’s homeownership program must first attend a homeowner information meeting. At the meeting, Habitat staff and volunteers thoroughly explain the program, answer questions, provide individual assistance, share the areas in York County where York Habitat will be building, and distribute the applications and forms necessary to apply to the program.  Childcare and translation services will be available when requested in advance.

Paperwork – Interested persons submit the paperwork as specified at the information meeting, including payment and authorization for Habitat to pull credit reports for adult applicants. The Family Services Coordinator will discuss program eligibility guidelines with applicants when income, debt, or credit history are of concern.

Personal Interview – A trained volunteer will confidentially consult with the applicant to discuss the applicant’s credit history and eligibility criteria. After the interview, based on the data collected, Habitat’s Family Services Committee votes to approve or deny the continuation to the next step – the home inspection. If an application is denied, the applicant may reapply at a later date when the issue has been resolved.

Home Inspection – A trained volunteer will visit the applicant’s current housing unit, utilizing a numeric rating scale, to complete a thorough assessment of need based on the HUD criteria. The Family Services Committee reviews the assessment and determines if the applicant qualifies for the next step, initial sweat equity.

Initial Sweat Equity – Each adult that will live in the home must complete 10 initial sweat equity hours showing a willingness to make a commitment to the program and preparing the applicant for the program. Applicants have 30 days in which to complete this initial sweat equity. When complete, the Family Services Committee will make a final vote to approve the candidate for recommendation to the Board of Directors.

Approval from the YHFH Board of Directors – Based on the data collected, fulfillment of the preliminary requirements, and the recommendation from the Family Services Committee, the board will vote to approve or deny formal acceptance into the Homeownership Program.

Family Partner Assignment & Program Requirements – A trained volunteer will meet with the new candidate(s) to journey with them through the homeownership program. The candidate(s) will sign a letter of understanding committing to the program and will begin working on their sweat equity hours. Each adult living in the home will complete 225 hours of sweat equity. Children also have sweat equity requirements, which are highly attainable. The family partner will attend educational homeownership classes, first time homebuyer sessions, and other educational meetings with the candidate(s) and answer any questions during the process. 

Budget Review – During the program and 90 days prior to settlement, a trained financial counselor (volunteer) will consult with the candidate about changes in income and/or debt. He/She will review a detailed “Dome” book, kept by the candidate, which documents several months of spending. The volunteer will advise the candidate of potential obstacles to completing the homeownership program. In addition, a second credit report will be obtained to confirm that debt has not increased and to monitor progress on paying down debts.  If appropriate, the budget review volunteer will recommend approval from the Family Services Committee, Executive Director, and Board of Directors to proceed to settlement.

Resolution – When sweat equity hours, coursework, and financial counseling is complete, the Family Services Coordinator and Executive Director calculate the home price based on the cost of the home and the candidate(s)’ ability to pay. A resolution is drafted and presented to the board of directors who approves the sale of the home at the specified price. The family completes paperwork for down-payment assistance through the Housing Alliance of York, purchases hazard insurance, and a settlement date is set up with the settlement company. About this time, the home construction should be complete and the candidate should have their down-payment in the bank.

Dedication – A ceremony is held in which the family, volunteers, donors, media, Habitat staff, politicians and interested community members come together to thank God for his provisions during the months/years of planning and laboring,  to seek God’s blessing upon the new home, and to celebrate the love and labor of all involved that made the home possible. The dedication is also a fun-filled house-warming party in which family, friends, and community members share their stories, enjoy fellowship, and “break bread” together.  

Settlement – At settlement, “candidates” become “homeowners.” Habitat representatives and the family join the settlement company at the table to formally and legally transfer title into the family’s name.

Pay it Forward – All Habitat program participants who have gone to settlement are encouraged to stay involved in the organization throughout the years through volunteerism at construction sites, on committees, serving at special events, and through any level of financial support. This is how homeowners “pay forward” the kindness and blessing they have received!