Greater Lycoming Habitat for Humanity. Homeowner Application Orientation. Title Here. lycominghabitat.org

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1 Greater Lycoming Habitat for Humanity Homeowner Application Orientation Title Here lycominghabitat.org

2 WHO WE ARE 1976 Habitat International is founded in Americus, GA by Millard & Linda Fuller Habitat is the 6 th largest home builder in the United States. Over 4 million people around the world have been served by Habitat since Greater Lycoming Habitat for Humanity was started in 1986 This will be our 52 nd & 53 rd home to have been built or rehabbed by the Affiliate!!

3 WHERE WE BUILD Hughesville 45 Penn Street Completion of the addition built on Linn Street in Williamsport 709 Diamond Street, Williamsport We Serve: Lycoming, Tioga, Eastern Clinton & Bradford Counties 2801 Linn Street - Williamsport

4 Our 50 th Home! It s not about me now, says single mother Dee, owner of a Habitat home on Diamond Street in the Newberry section of the city, which was completed in November of It s about my daughter.

5 Our 51 st Home! 1607 Memorial Avenue Williamsport Construction Timeline: October November 2016 Single family dwelling 3 BD, 1 Bath Total Volunteer Hours: 2,895!

6 Our Next Build 1608 Scott Street, Williamsport Construction Timeline: Oct 2017-Nov 2018

7 1 1 Kitchen Kitchen 2 2 Family Room Family Room 3 3

8 So You Want To Be A Homeowner Reasons for Home Ownership A home provides a place for a person or family to be established. A home can provide safety, security, stability, and hope for the future. In a safe and decent home, a person or family can thrive and live life to the fullest. Your payments are purchasing something that will become yours! You can decorate any way that you want! You can be part of a neighborhood.

9 Homeownership Comes with RESPONSIBILITIES! When things go wrong, you have to take care of those things yourself. (No landlord to call.) You have to replace things when they wear out (carpet, cabinets, appliances ) which can be expensive. You have to take care of your yard (mowing, watering, trimming, raking). You must continue paying property taxes and homeowner s insurance, even if your home is paid off.

10 How Can Habitat Help? WE CAN PROVIDE An experienced construction team we ve been building homes in Lycoming County since Community connections to help with the construction costs and labor. Education, support, and hands-on work experience for you to help prepare you for owning and maintaining a home. An affordable mortgage at 0% interest. We help make homeownership more affordable for qualified applicants.

11 What s the Big Deal about 0% Interest? Monthly payment shown does not include property taxes and homeowner s insurance, which adds about $ to each monthly house payment. See the difference? You save $107,804 because we charge 0% interest! (That is a BIG deal!)

12 How Do I Qualify?? BASIC REQUIREMENTS YOU MUST Have a housing need Have the ability to pay a monthly house payment Be willing to partner with Habitat

13 MUST HAVE: A HOUSING NEED WHAT DOES THAT MEAN? Applicant s family present housing is plagued with at least one of the following conditions: Structure Requires repairs that family is unable to perform or landlord is unwilling to complete Unhealthy living environment deficient heating system, mold, poor water quality, unsafe electric, etc. Handicapped accessibility barriers with current dwelling can not be corrected Size Inadequate number of bedrooms Temporarily living with relative or friends in overcrowded conditions

14 MUST HAVE: A HOUSING NEED WHAT DOES THAT MEAN? Applicant s family present housing is plagued with at least one of the following conditions: Safety Neighborhood is unsafe Dwelling is plagued with constant infestations of rodents Conventional Financing Family has applied but has been denied a conventional or government assisted mortgage Family has no marketable assets which could be used to obtain a conventional loan. Affordability Family spends in excess of 50% of gross income for rent, excluding utilities

15 MUST HAVE: ABILITY TO PAY WHAT DOES THAT MEAN? Have income within Habitat guidelines. Not have excessive debt. Show that you are paying bills on time. Have or be able to save $1,000 prior to taking ownership of the home PLUS the cost of first year s ESCROW Have NO liens, judgments, or debts in collection by the time you purchase your home (12-18 months from now).

16 WHAT ARE THE INCOME LIMITS? Habitat for Humanity recommends that the income for its applicants fall between 30%-80% of the Annual Median Income for Lycoming County. AMI Band 1 Person 2 People 3 People 4 People 5 People 6 People 7 People 8 People 30% $12,750 $16,240 $20,420 $24,600 $28,780 $32,960 $37,140 $39,950 50% $21,200 $24,200 $27,250 $30,250 $35,100 $35,100 $37,550 $39,950 80% $33,900 $38,750 $43,600 $48,400 $56,150 $56,150 $60,050 $63,900 Income limits are determined by HUD based on the Area Median Income (AMI) for the area. The AMI for a family of four in Lycoming County in 2016 is $60,500. All reoccurring income received into the household is counted as income. This includes wages and salary, social security, alimony, child support, pubic assistance, etc.

17 MUST HAVE: WILLINGNESS TO PARTNER WHAT DOES THAT MEAN? Habitat s partnership with you means WE WILL: Build (or renovate) a house in partnership with you and community volunteers. Provide opportunities for you to learn skills you will need for owning and maintaining a house. Sell you a Habitat house (after all terms of partnership agreement are met).

18 MUST HAVE: WILLINGNESS TO PARTNER WHAT DOES THAT MEAN? Your partnership with Habitat means YOU WILL: Respond cooperatively and promptly to Habitat s requests, and always keep us informed of any changes to contact information or work status. Maintain or improve your financial situation. Attend required classes for homebuyer education. (Habitat Orientation, Construction, Budgeting/Financial Counseling, and others) Perform all sweat equity hours and actively work when you are at the construction site. Have an open & honest relationship with Habitat.

19 WHAT IS SWEAT EQUITY? Sweat equity refers to the number of hours you are required to work before we can sell you a Habitat house. 250 hours are required for each adult living in the household (18 years and older; Max 500 hours per household) HOW DO I GET SWEAT EQUITY HOURS? By participating in the construction work on your home and/or other Habitat homes. By attending homebuyer education classes. You may also perform work in the Habitat Restore (if approved by the Habitat office).

20 You May Be Thinking that Seems Like A Lot of Work! How many hours a month will I need to commit to working with Habitat for Humanity? You need to set aside hours per month for Habitat sweat equity. Can extended family or friends help with this requirement? Yes!! Up to 50 hours can be donated by people who will not be living with you in your Habitat home. (They work you get the credit!).

21 ANY OTHER REQUIREMENTS? You must live or work within Lycoming, Tioga, Eastern Clinton, or Bradford counties. Be willing to live where we are currently building.

22 HOW DO I APPLY? Fill out the application completely! No incomplete applications will be accepted or reviewed! Be sure to send a $10 application fee per adult applicant! Mail application and payment to Habitat. The review of applications will begin November 1, 2017: Greater Lycoming Habitat for Humanity c/o Family Services Committee 335 Rose Street Williamsport, PA 17701

23 WHAT HAPPENS AFTER I APPLY? 1. The Family Services Committee reviews your application. -Calculates income and reviews the credit report of all adult applicants 2. Once their income and credit have been approved, the applicant is invited to complete a full homeownership application. -Verification of bank balances, income, and rental history 3. Two members of the Family Selection Committee schedule a time to visit the applicant s home to meet with them and their family. -Committee members write up a report reviewing the applicant s need for housing, ability to pay, and the willingness to partner and reports back to Family Selection Committee 4. Committee will report on all eligible applicants to the Board of Directions, who will make the final selection. Approved applicants will receive an approval letter and will become a homebuyer partner! Denied applications will receive a letter at a meeting with a staff member stating the reason for denial.

24 WHAT IF I M APPROVED? If an applicant is selected, the applicant is invited to become a homebuyer partner, and a partnership agreement is signed. Homebuyer partners complete all sweat equity requirements and educational classes. A final ability to pay verification is done about 60 days prior to selling you the home. (There can be no liens, judgments or debts in collection at this time). Mortgage documents are signed, closing costs are paid, we have a homeowner dedication ceremony, and the homebuyer partner now becomes a homeowner. As a Habitat homeowner, you begin making regularly monthly house payments and take over responsibility for maintaining the home. NOTE: If ability to pay or willingness to partner criteria are not met, a homebuyer partner can be de-selected from the program. There is no guarantee of becoming a Habitat homeowner just because your application is approved and you are selected.

25 WHEN YOU BECOME A HOMEBUYER, THE GIFTING CONTINUES

26 WHAT IF I DON T QUALIFY? Don t Give Up!...We Can Help! The Family Services Committee is currently designing a new program that will allow us to work with families not yet ready for homeownership. Through partnerships with local agencies and educated volunteers, Habitat will be able to guide families through the process of becoming ready for homeownership. In the meantime We can sit down with your family and review the changes (income, credit) you need to make before you can reapply. We ask families to come back once they ve addressed the problems and reapply for the program. Many services like financial and homeowner education classes, credit counseling, accelerated savings programs, and medical bill forgiveness already exist in our community. They can be confusing and difficult to find, but we can help point you to these programs. Salvation Army is having classes on Living Financially Healthy coming up in September! (Flyer in your folder!)

27 FINAL THOUGHTS. If your application is denied, you will receive a letter and explanation. Some applicants apply several times before they become eligible or get selected every year is different based on who applies. If your application is approved, you can expect the process of becoming a Habitat homeowner to take from months. The application process takes several months before final applicants are approved. If you haven t received a denial letter, then your application is still in process. Review of applications will begin November 1, 2017!

28 THANK YOU!

29 CONTACT US! Greater Lycoming Habitat for Humanity 335 Rose Street Williamsport, PA (570) Alice Schuster Executive Director Katherine McCaslin Program Director