Homeownership
You Can Be a Homeowner!
Decent, stable, energy-efficient and affordable housing is critical to education, health, and economic success across our area. Cowlitz County Habitat’s unique homeownership program allows hardworking low-income families (in the 30%-80% AMI) to build and buy a home with a 0% interest mortgage after completing 500 sweat equity hours.
There are occasional opportunities to partner with other organizations to offer a low-interest mortgage and/or participate in our rehab programs. We invite you to attend our homeowner application meetings to learn about the various opportunities.
Cowlitz County Habitat for Humanity is an equal opportunity housing provider.
✳︎
Cowlitz County Habitat for Humanity is an equal opportunity housing provider. ✳︎
Habitat for Humanity provides the opportunity for families and individuals to purchase affordable homes throughout Cowlitz County. Our model allows Habitat homeowners to build equity in their homes, while ensuring that the home is affordable to the next buyer.
Families are selected based on meeting three criteria:
-
Applicants must demonstrate that their current housing does not meet their family’s needs. If your current residence is inadequate because of overcrowding, structural damage or does not meet current property codes, or has maintenance issues that your landlord does not tend to, you may qualify for a Habitat home.
The following is a list of other reasons that may qualify as a need for housing:Unsafe neighborhood
Rent is not affordable (more than 50% of monthly income)
Housing is transitional
Housing is subsidized
-
Applicants purchase Habitat homes with moderate interest rate mortgages based on participating lenders special programs. Habitat considers credit history, employment, and debt-to-income ratio to determine an applicant's ability to make regular payments and to cover closing costs.
Qualifying Issues to consider:Collections Limit: $0, small lower amounts may be an exception, lender determined
Credit score: Minimum 620
No liens or judgments
First time homeowner (have not owned a home in the last 3 years - manufactured homes excluded).
Bankruptcy: Chapter 7 – 4 years discharged. Chapter 13 – 2 years discharged.
Employment: For wage earners, you must have two years of steady employment with the same employer. Exceptions may be made for changed jobs in the same field.
-
Homebuyers participate in the construction of their home by completing sweat equity hours - building their home and their neighbor's home. Hours can also be completed by attending required classes, volunteering at our Habitat Store, or by volunteering in special events.
This is a "Hand-Up" program, not a "Hand-Out" and we look forward to supporting and working with you.
Sweat Equity
Homeowners for new home construction are required to perform a minimum of 500 hours of volunteer work known as “sweat equity” within the Habitat organization before moving into their home (40 hours per month).
Sweat equity is an exciting learning experience in which you work with family, neighbors, and friends to build other homeowners’ homes as well as your own. Working alongside volunteers and future neighbors to build your home and community is one of the most rewarding aspects of Habitat for Humanity.
In addition to working on the construction site, there are many ways to complete sweat equity hours such as: Working at the Habitat Main Office, Habitat Store, helping with homeowner outreach, special events, and attending classes on home maintenance and financial fitness.
Homeownership FAQs
-
Habitat for Humanity provides a unique opportunity for hardworking families to build and buy their own homes. Our homes are sold at no profit to our homeowner families, with a minimal down payment and a 0% interest mortgage. The mortgage lengths vary depending on the family income. Habitat adjusts the length of the mortgage so that the monthly mortgage payment (which includes taxes, insurance, and HOA fees, if applicable) is no more than 30% of the homeowner’s gross monthly income. Habitat for Humanity homeowner mortgage payments are put into a fund that helps pay for construction of future homes in the Cowlitz County community.
-
Our permanent affordability model uses a resale formula that provides sellers with 1.5% compound interest over the life of the mortgage, plus what they have paid towards their mortgage. This ensures that the homeowner can still build equity, this coupled with a land lease as Habitat retains the deed to the land keeps the home permanently affordable to the next buyer. This guarantees affordable neighborhoods into the future, for Cowlitz County.
-
Homebuyers will complete Sweat Equity hours. Sweat Equity refers to the actual hands-on involvement of Habitat homebuyers in the construction or rehab of their own homes. Hours can also be done in our Habitat Store, as well as participation in other Habitat and community activities, and a series of education classes. All hours must be completed before pre-approved homebuyers purchase their home. Hours will vary per project, for example, hours for a newly construction home may be different than a rehab home. Education topics include: Financial Readiness, First Time Home Buyer class, Maintenance and Warranty/Good Neighbor, and a Ground Lease class. All classes will be provided by Habitat free of charge.
-
Applications are accepted year round. The first step is to attend the required orientation, then submit a pre-application. Along with the pre-application, applicants will be asked to submit additional information such as pay stubs, bank statements, and tax returns. Habitat staff will use that information, as well as information from the pre-application and a credit report to determine eligibility for our program. This is not the final step, final step includes qualifying with a third-party lender.
-
Not all applicants are mortgage ready the first time they apply. We have community partners that will work with you if your credit does not meet our standards or the standards of our third-party lending partners. Once you feel your credit has been improved you are welcome to apply again.
-
If you are interested in the Habitat for Humanity program and have reviewed the requirements to see if you qualify, the next step is to attend an orientation, offered twice a month. This orientation is required so you can determine if our Home Trust, permanently affordable model is right for you.
-
We typically build two- to five-bedroom wood frame homes with approximately 900 to 1500 square feet. We also rehab homes in which the square footage and amenities of homes vary. An electric or gas range, refrigerator, and dishwasher are provided with most homes. Habitat homes or remodel homes can be single units or attached and share walls.
-
The location of the home is dependent upon where Habitat is building or remodeling houses. The locations available will usually be discussed during the homeownership application process. Habitat does not build custom homes. Habitat will choose the size of the home based on household size and makeup. We expect two children of the same gender to share a bedroom if they are close in age.
-
Homebuyers are in the program until their home has been built or remodeled; generally, this could take 6 to 24 months. Ideally, construction of a pre-approved homebuyer’s home begins within six months from the time of approval. Completion dates of the homes vary, are subject to change and never guaranteed. The construction process is complex with many variables including funding sources, the construction schedule and building requirements. This complexity makes it difficult to predict the length of time from pre-approval in the program to purchasing a home.
-
Yes! Even though this is a difficult topic for people to prepare for, drawing up the appropriate paperwork is always best to have. Your home will be the biggest asset you will own and knowing you can leave it to your loved ones gives you peace of mind.
-
Yes! There are resale restrictions, this will be covered in the onboarding and the ground lease class. You can sell your home any time you like to.