Program Guidelines
Habitat for Humanity of the St. Vrain Valley provides the opportunity to purchase a home through an affordable mortgage in the St. Vrain School District and Estes Park for qualifying households.
When you submit an application, we will confirm your household meets our basic program guidelines. The main areas we review are income, credit, U.S. legal residency, and if you are a first-time homebuyer. The information below will provide an overview of our process and a detailed picture of what we look for in homeownership applicants.
INCOME
Habitat for Humanity's affordable homeownership program is for household's earnings up to 60% of the area’s median income (AMI).
Income Documentation
You must submit proof of income so we may calculate your annual household income. The application checklist will explain the required documents for each type of income. Since there are several factors such as property taxes, mortgage payments, and insurance, the income limits may vary for each Habitat home.
The chart below shows the current maximum gross annual income separated by household size for Boulder County. These numbers may be different in Weld and Larimer County. These numbers typically change yearly and are set by the U.S. Department of Housing and Urban Development based on the cost of living.
CREDIT
We review an applicant and co-applicant’s credit (titleholders) to ensure you have an established history of making on-time payments and keeping up with financial obligations. This shows us you are likely ready for the responsibility of homeownership. We do not have a minimum credit score. However, we aim to ensure that there are no significant issues in your credit report. Our credit review is very detailed, but some basic items to note are:
A credit report will be submitted for processing during the application process. The $59.70 application fee per person, will be used to pay for the cost to run this report.
No bankruptcies or foreclosures in the last two years. We are looking at the date of discharge for the bankruptcy.
No more than $5,000 can be in collections or charge-offs. Judgments, or liens - no matter how small - must be cleared before you can move forward.
We do not allow more than two late payments greater than 60 days in total in the previous 12 months.
Habitat's program has a maximum debt-to-income ratio of 43%. Habitat assumes your monthly housing costs to be 27%, leaving 16% of your income that can be used toward monthly debt (student loans, credit cards, auto loans, etc.).
PROOF OF U.S. LEGAL RESIDENCY
All applicant(s) whose name will be on the title must show proof of legal U.S. residency and at least one applicant must show proof of permanent legal U.S. residency. Please refer to the application checklist to see which documents are acceptable.
FIRST-TIME HOMEBUYER
To qualify for our homeownership program, you must be a first-time homebuyer using HUD's definition. Generally, a first-time homebuyer is someone who meets any of the following requirements:
An individual who has had no ownership in a residence during the three-year (3) period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
A single parent who has only owned with a former spouse while married.
An individual who is a displaced homemaker and has only owned with a spouse.
An individual who has only owned a residence not permanently affixed to a permanent foundation per applicable regulations.
An individual who has only owned a property that was not in compliance with state, local, or model building codes, and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
INFORMATION SESSION ATTENDANCE
Part of St. Vrain Habitat's homeownership program requires applicants to attend a homebuyer orientation: a free, hour-long information seminar that covers program guidelines, expectations, and timelines and allows you to ask questions. This is mandatory if you wish to apply for homeownership. Click the link below to sign up for our interest list to be notified of future orientations.
SELECTION
We select Habitat homeowners based on meeting all program guidelines and the following criteria: (1) the need for adequate housing, (2) the ability to pay, and (3) the willingness to partner.
Need for Adequate Housing
We consider the stability of your current housing situation. Is your housing transitional, below market rate, unstable or unsafe? Is your current situation overcrowded? Does your current housing situation result in a cost burden (a very high percentage of your income going towards rent)?
Ability to Pay
Your income is below 60% of the median income in Boulder County (or applicable equivalent county) and through the review of your credit report and proof of income, you demonstrate the ability to pay the monthly mortgage payment and any financial obligations.
Willingness to Partner
We like to say that the Habitat homeownership program is a hand-up, not a handout. You will be purchasing a home and need to meet certain requirements to achieve that. We require sweat equity and a savings plan.
Sweat Equity: Homebuyers complete 250 hours of sweat equity per applicant, into the construction of their homes. Most of this work is done on the construction site of the home they will be building, other Homebuyer homes, or assisting at the St. Vrain ReStore, with reasonable accommodation made for health and disability reasons.
Savings Plan & Financial Education Classes: In addition, attending homebuyer education classes and creating a savings plan with a minimum of $1,000 to pay part of the closing costs (including property taxes and homeowner's insurance) is a key element to becoming a homeowner.
Open Communication: Homebuyers must be willing to communicate and partner with Habitat for Humanity of the St. Vrain Valley.
For more information about our homeownership program,
contact info@stvrainhabitat.org or 303-682-2485 x.110
Require ADA Accommodations?
Email adaaccommodations@stvrainhabitat.org