Your Journey to Homeownership with Twin Cities Habitat

Dreaming of your own home with a yard, open kitchen, or a garage for your car? Twin Cities Habitat for Humanity's Homeownership Program can help turn those dreams into reality! Wondering how it all works? We've got you covered.

The first step in buying a house through Twin Cities Habitat for Humanity is determining your eligibility. Here are the key factors to consider: 

• Income Level: The Homeownership Program's income requirements are adjusted based on area market conditions, with specific thresholds varying by family size and local housing market. Although Twin Cities Habitat provides affordable mortgages, applicants must still show they can afford the mortgage, property taxes, homeowners insurance, and related expenses.

• Credit History: While perfect credit isn't a requirement, applicants must meet minimum credit score and credit history requirements that demonstrate responsible financial habits and a willingness to manage debt.
• Housing Need: Applicants must be a first-time homebuyer who are current residents within the seven-county metro area. 
• Willingness to Partner: Prospective homeowners must be willing to partner with Habitat for Humanity by attending homeownership education classes and fulfilling other program requirements.

You can fill out this eligibility form to kickstart your journey. It will ask you questions related to the above information to see if you qualify for this program. 

The Journey Begins

Once you've completed the eligibility form, you will receive an automated email with information about next steps. If it appears that you are eligible, you will be invited to complete an online application where you will be asked for some additional information to determine the perfect program for your needs–be it Financial Coaching or the Homeownership Program. If your eligibility form suggests neither program is a good fit right now, you will receive information about referral partners who can help you prepare for future Habitat homeownership.

If you appear to be eligible for either the Twin Cities Habitat for Humanity Homeownership or Financial Coaching Programs, the next step is submitting a program application. This can be done conveniently through our online portal. To ensure a smooth process, be sure to gather the required documents beforehand. This blog provides a helpful overview of the application process, including a list of necessary materials and tips on where to find the required documentation.

Upon acceptance into the Financial Coaching Program, you'll be paired with a dedicated financial coach. They'll guide you through the program, helping you achieve financial readiness. Once you've completed the program and you meet the requirements to be considered mortgage ready, you will be invited to complete education requirements, including Home Stretch and Habitat-led workshops about buying and maintaining your home. If you already meet the mortgage-ready criteria when you apply, you may be invited to complete education without needing to work with a financial coach.

Finding Your Home

Our program offers two routes to homeownership: purchasing a Habitat-developed home or finding a home on the open market. Your financial coach or client services staff contact will help guide you through which homebuying options you may qualify for that also meet your needs. 

To find a home constructed, remodeled, or renovated by Twin Cities Habitat, you'll review available properties. You could instead choose to purchase a home from the open market with a TruePath Mortgage. To do this, you will work with a Realtor to find a home for sale in the seven-county metro area. The Habitat Realtor Network works with real estate agents who are familiar with our program, however, you can choose any real estate agent you would like to work with.

Submitting Your Loan Application

Once you’ve found a home you like, it will be time to apply for a mortgage through TruePath Mortgage by TCHFH Lending, Inc. With fixed interest rates and a debt-to-income ratio that ensures affordability, our mortgages set you up for success. Plus, no private mortgage insurance means more savings for you!

You can check out this link for an overview of TCHFH Lending Inc. application requirements.  

Closing on Your Home

Once your mortgage application has been sent and approved, the finish line will be in sight! While you may be tempted to celebrate this huge accomplishment, there are some things to avoid doing to keep your approved status.

DON’T:

• Make any large purchases (ie. car, new furniture, phone)
• Change jobs
• Open a new line of credit 
• Move money around in your accounts

Closing on your home is a process in and of itself, but don’t worry! You can check out this blog to get all the information you need to know about this process. 

After you’ve moved into your home, the Volunteer and Learn Program is a great way to stay involved with Habitat and your community. Homeowners get hands-on volunteer experience to learn new skills like home maintenance, financial planning, and more. 

Partnering with Habitat

The homebuying process can feel overwhelming initially, but remember, we are here to help you navigate this journey. If you have any questions, our team is ready to guide you every step of the way. Welcome to the path of homeownership!