FAMILY SELECTION CRITERIA

Habitat for Humanity of Otsego County is an ecumenical grassroots Christian Ministry with the goal of eliminating poverty housing. Who receives a Habitat Home or with whom we work in rehabilitating a house will not be determined by race, ethnic origin, religion, marital or family status.

Habitat Partner Families are chosen on the basis of need, ability to pay and their willingness to actively engage in partnerships.


I. ACTUAL NEED

We are looking to help those who need it the most. Since we cannot help everyone. This means families who are living in conditions which are considered unsafe, crowded or otherwise unlivable; and families who cannot afford a regular bank mortgage.
A. Living in substandard housing

1. Structurally substandard
The home the family is living in would not pass Federal Section 8 standards - inadequate wiring, plumbing, heat insulation, energy efficiency, unsafe conditions or is functionally inadequate.

2. Inadequate space
Living area or bedrooms are insufficient for the family. Sufficiency of bedrooms is determined by the number of persons in the household, ages and sex of the household members.

3. Unable to secure conventional financing of a mortgage.
Bank criteria state that the mortgage may not exceed 26% of gross monthly income and the applicants total income. Down payments range from 5% to 20%. Home buyers must also have sufficient cash to pay closing costs.


Each partner family will purchase its own house; this is not a gift. The families we choose are called "Partner Families" becuase they will have an active role in acquiring their own house. They are expected to pay a mortgage (although much less than a standard bank mortgage), and minimal closing costs, plus donate hours of labor (physical work on the house or other work on committees) toward the construction of their own or other partner families homes. The cost of a Habitat House in Otsego County averages about $45,000 to $ 55,000 which translates (with escrow for taxes and insurance) to monthly payments of about $375 to $460 for about 20 years. While partner families pay for the cost of land and materials, the cost of the homes is kept down because most of the labor is donated by our volunteers. As each partner family pays its mortgage payments to Habitat, we are enabled to buy land, supplies and materials to build more homes for deserving families. No interest is charged on these mortgage loans. We must choose families who can afford these payments. If the resources are not there, the family will lose the house for inability to pay and we don't want to see this happen.
II. ABILITY TO PAY

A. Income must be at least 4 times the expected housing costs (mortgage, insurance, taxes)
Income may not exceed 6 times expected housing costs.
The family must be able to pay a minimum of 1% of the value of the house as a down payment.
Total indebtedness may not exceed 38% of gross monthly income.

B. Target Income. - Family income should fall between 35% and 65% of the median income for Otsego County.

2007 Median Income Figures