Own a Habitat Home FAQs

House Payments & Closing Costs:

Q. Are the property tax and insurance included in the monthly house payment?
A. Yes, 1/12th of the estimated tax and insurance are included in the house payment. The homeowner is notified of any increase.

Q. How much time does the future homeowner have to raise the $2,000 for closing costs?
A. The home could be ready for occupancy within 1 1/2 years from the time the applicant is approved but it could be 2 years or more.

Q. Does the $2,000 for closing costs include the 1st month's house payment or does the homeowner need to have both the house payment and the $2,000 closing costs at occupancy?
A. The $2,000 does not include the house payment but the 1st house payment is not due until the 2nd month. Each approved homeowner will receive a complete packet of information regarding these issues.

Q. When are monthly payments due?
A. All payments are due on the first of each month. There is a grace period of 10 days before a late fee of $25 is charged. Habitat-Spokane will foreclose if payments are repeatedly late.


"Sweat Equity" - Willingness to Partner

Q. What is the minimum age for providing "sweat equity?"
A. 16. However, it is possible for those under 16 to work off the job site if prior approval is received from the Family Services Director.

Q. How much time does the future homeowner have to put in the required 500 hours of "sweat equity?"
A. The 500 hours must be contributed before the home is ready for occupancy. As already mentioned, this could be in 1 1/2 years but it could also be over 2 years.

Q. How many hours can be donated by other family members to help meet the 500 hour requirement?
A. While there is no limit on the number of donated hours, only 100 hours can be applied to the homeowner's 500 hour requirement. Anyone can donate labor, not just other members of the applicant’s extended family.

Q. Is the future homeowner required to put some hours of "sweat equity" at the home site?
A. Yes. 100 hours are required on the construction of your future home. Most homeowner partners easily meet this requirement.

Q. Can volunteers donate their volunteer hours to a homeowner? For example, can a member of the Family Selection Committee donate hours toward a homeowner's "sweat equity?"
A. Yes. Any volunteer can contact the Family Services Director and request that their hours are donated to a candidate homeowner partner, but there is still a maximum of 100 hours that can be donated to any candidate.


Household Income & Ability to Repay

Q. When determining the total household income, do we include the income from those under 18 who has a job?
A. Generally, only the income of those over the age of 18 would be included. When in doubt apply the "3-year rule," will this income last for more than 3 years? That said, each situation should be evaluated individually when determining if the income from a minor should be included in the household income.

Q. What if an approved applicant looses his/her source of income before occupancy?
A. It is possible to "de-select" a family if it is found that their debt to income ratio increases significantly, income decreases below the eligibility level or there are other changes that would affect the applicant's ability to repay after the family has been selected. Habitat-Spokane works closely with the families to monitor such situations and will work with the family to try to avoid such a negative action. While the FSC is involved in the selection process, the committee is not involved in any "de-selection."

Q. Could a family be "de-selected" if the applicant receives a promotion or has a new job with a significant increase in salary that may put the household income over the maximum limitation?
A. No. Applicants are not penalized for positive life events such as a promotion, getting married, or finding a new job.


Current Housing Conditions & Need

Q. If the applicant presently resides in subsidized housing, do we consider the total rent or the amount of rent that is actually paid by the applicant when determining the rent to income ratio?
A. We use the amount of rent the applicant currently is paying out of pocket. Sometimes we are not doing the family a favor by taking them out of adequate subsidized housing and putting them in a Habitat home with a much higher monthly house payment.

Q. Should Habitat-Spokane adopt a policy that eliminates applications from those residing in subsidized housing since such housing should not be sub-standard?
A. We cannot assume that all subsidized housing will be adequate and not meet the need criteria. While most subsidized housing is adequate, home visits have found that some meet the needs criteria.


General

Q. Can a homeowner include their home in their will, even if it is not paid for?
A. Yes. They own the house the same as any homeowner and can include their home in their will.

Q. What happens if 10 applicants are eligible but only 3 homes will be available?
A. The Board of Directors will not approve more than the known number of homes that will be available.

Q. If the Board does not approve all of the applications, will those applicants not approved by the board be placed on an eligibility list and automatically considered when homes are available?
A. No. No list of eligible applicants is maintained and those not selected by the Board must re-apply.