For the
first time in 25 years and 300 homes, Habitat for Humanity Saint
Louis does not have a waiting list. In fact, houses scheduled for
construction don’t have owners and are up for purchase.
“font-size: 9.0pt; font-family: Verdana;”>The nonprofit is well-known for providing affordable housing. However, with the present economic climate, Habitat has had to toughen up its qualifying requirements for its homebuyer’s program.
“font-size: 9.0pt; font-family: Verdana;”>Required income levels are higher, credit expectations are stricter and debt-to-income ratios are lower.
“font-size: 9.0pt; font-family: Verdana;”>“We want to make sure that we are selecting people who will be successful long term,” said Avis Laden, Habitat’s family selection and support manager. “We are looking for families who have learned to live on budget and live within their means.”
“font-size: 9.0pt; font-family: Verdana;”>The families have to be stable enough that they will be able to handle the mortgage for 25 to 30 years, she said. The last thing Habitat wants is to see families facing foreclosure in the long term.
“font-size: 9.0pt; font-family: Verdana;”>“We have seen a number of families who are struggling to make their mortgages,” she said. “We are working with them to keep them track. If they get into a jam, we are there to support them through it.”
“font-size: 9.0pt; font-family: Verdana;”>The number of qualified homebuyer applicants has also declined because of the uncertainty in the employment market, she said. An example of a qualifying applicant is a couple who earns between $18,000 and $35,000, or a family of four that earns between $22,000 and $40,000.
“font-size: 9.0pt; font-family: Verdana;”>Although Habitat has made their requirements stricter, Laden said they are still providing affordable housing alternatives to substandard housing.
“font-size: 9.0pt; font-family: Verdana;”>“We’re still building brand-new houses at zero interest, and they are still at an affordable mortgage rate, between $400 and $450,” she said, “and that includes taxes and insurance.”
“font-size: 9.0pt; font-family: Verdana;”>This year was the first year Habitat started a “pre-screen” phase where applicants complete a questionnaire about income, credit and debt-to-income ratio. Laden said this alone weeds out a lot of non-qualifying applicants. If the applicant passed this phase, then CitiMortgage reviews the files and makes the decision to proceed.Â
“font-size: 9.0pt; font-family: Verdana;”>The prospective homebuyer would then fill out conventional loan and meet with a Habitat staff member for review. A Habitat representative would make a home visit and assess the need of the applicant based on how they are currently living.Â
“font-size: 9.0pt; font-family: Verdana;”>“Need” is one of the major components of the Habitat Homebuyers program, she said.
“font-size: 9.0pt; font-family: Verdana;”>Upon acceptance into the program, Habitat asks that homebuyers attend a series of workshops on finance and budgeting, being a good neighbor, and home maintenance. Each family is required to complete 350 hours of “sweat equity.” Ninety of these hours must be completed within their partner community. This provides an opportunity for families to become familiar with their future community and neighbors.
“font-size: 9.0pt; font-family: Verdana;”>“Habitat for Humanity Saint Louis believes everyone deserves the basic human right of a safe, stable, and comfortable home,” Laden said. “font-family: Verdana;”>Â
“font-size: 9.0pt; font-family: Verdana;”>Information on Habitat’s Homebuyer program can be found on-line at habitatstl.org. Interested homebuyers can request an application by calling 314-371-0400, or by going on-line at habitatstl.org.Â