Myths About Who’s Eligible to Buy a Home with Habitat for Humanity

Twin Cities Habitat for Humanity works with a lot more people than you may think.

In fact, if you’re considering buying a home, it’s worth at least looking at the benefits of what Habitat can offer you, even if you don’t think you’ll be eligible for our program. The perks include the following:

• A mortgage rate lower than traditional lenders.

• Affordability assistance to ensure your monthly payments fit into your family’s budget.

• Homeownership classes so you’re ready to be successful as a long-term homeowner. 

Twin Cities Habitat is able to do this because we are a nonprofit with the mission to bring people together to create, preserve, and promote affordable homeownership and to advance racial equity in housing. We welcome all people to consider if our program is right for them. Keep reading to learn the truth about myths people believe about Twin Cities Habitat. 

Twin Cities Habitat for Humanity Eligibility Myths, Busted

1. You can never have owned a home before - FALSE

Twin Cities Habitat’s Homeownership Program does work with “first-time homebuyers,” but this definition is not straightforward. The government typically defines a first-time homebuyer as someone who hasn’t owned a home for at least the past three years. This rule is waived for U.S. military members and veterans. Owners of manufactured homes are eligible. You do have to have lived in the Twin Cities seven-county metro area for at least the last 12 months to qualify.

2. You have to live in poverty - FALSE 

Homeownership is a big financial commitment and won’t work unless the family buying the home has the resources to make it work. There are both minimum and maximum income guidelines to be eligible for Twin Cities Habitat’s program.

Many people think they make too much money to qualify for buying a home with Twin Cities Habitat. However, families making more than $100,000 per year can still qualify for our programs. The income guidelines adjust annually, so visit the Homeownership Program criteria page to see what the current numbers look like for how much money your household must make (and the limit) in order to qualify.

3. You have to be Christian - FALSE

Habitat for Humanity has a non-proselytizing policy and doesn’t take religion into account when determining which households to work with. Our community of homeowners, as well as our staff, donors, and volunteers, come from all backgrounds and walks of life. 

4. You have to buy a home built by Habitat for Humanity - FALSE

Buying a home built or already owned by Habitat is one option (and you can explore homes currently for sale from Twin Cities Habitat), but you can also buy an existing home you find on your own using a real estate agent. This means you can shop for homes in the locations you’re interested in living and look for the exact things you want in a home.

However you buy with Habitat, you will get to use TruePath Mortgage from Twin Cities Habitat’s wholly-owned nonprofit mortgage company, TCHFH Lending, Inc.

Resource: First-Time Homebuyer Guide

If You’re Not Eligible Yet

Homeownership is a great way to build multigenerational wealth for your family, but it is also a big financial responsibility. In order to qualify for a mortgage, you must meet criteria around employment, savings, and debt-to-income ratios to ensure you’re in enough of a financially stable position to buy a home.

If there are issues with your finances that you need to work on to meet the mortgage requirements, you may still be able to begin financial coaching with Twin Cities Habitat.

Twin Cities Habitat has experienced coaches who can help families work on their finances so they can become eligible for a mortgage. You can see a recorded information session that covers Habitat’s Homeownership and Financial Coaching Programs and how to get started by visiting this information session page.