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Eligibility Criteria
Applicants must be U.S. citizens or lawful permanent residents (Green Card holders). All applicants and household members aged 18 or older will undergo a criminal background check and a sex offender registry screening. Applicants must be first-time homebuyers or have not owned a home in the past three years. Additional requirements are outlined below. During each application period, further criteria may apply.
Charné and her family | Homeowner #97 | Painesville, OH
Our Homeownership Program
Lake-Geauga Habitat for Humanity believes that everyone should have a safe, affordable place to call home. When you partner with us, you don't just build a house, you build a better future with support, resources and opportunities available exclusively to the Habitat community. We've secured two lots in Painesville for our next two homeowners!
Household Income Requirements
To qualify for Habitat homeownership, the total annual gross income of all adults who will be living in the home must fall within 45%–80% of the U.S. Department of Housing and Urban Development (HUD) Area Median Income for Lake and Geauga Counties. This limit is adjusted based on household size.
What is gross income?
Gross income consists of all earnings before taxes are deducted such as wages, child support, alimony, Social Security benefits, disability payments, interest, dividends, and other forms of regular financial support.
How to calculate gross income?
Income for all adults who will be living in the household must be counted even if an individual is not the borrower or co-borrower.
To calculate the gross annual income, multiply the individual’s hourly rate times the number of regular hours worked each week times 52 weeks in a year.
For example, $20.00 an hour x 40 hours a week = $800.00 a week. $800 x 52 weeks = $41,600 gross annual salary.
To calculate gross monthly salary, divide the gross annual salary by 12 months. $41,600/12 = $3,466.66.
FY 2024 Household Income Requirements
Select the household size that best represents the number of people who will be living in the home, including all children and adults. Each tab displays the gross annual income requirement for our homeownership program.
Household Size: 1
Gross Annual Income: $30,650 - $54,450
Sweat Equity Requirement:
Household with 1 adult: 200 Hours
What is Sweat Equity?
Sweat equity is an important part of Habitat for Humanity’s homeownership program. Instead of a traditional down payment, future homeowners invest their time by helping build their own home, working on other Habitat projects, or participating in financial education courses. This hands-on approach not only reduces costs but also builds skills, pride, and a deeper connection to your future home and community.
Ability to Pay a Monthly Mortgage
Eligible applicants will demonstrate the ability to afford the estimated monthly mortgage and household expenses by meeting the criteria below:
Average monthly house payment – The average monthly house payment ranges between $1,000 - $1,500 but could be higher. This figure includes estimated property taxes and homeowner’s insurance which may increase from year to year.
Income history – Habitat requires a steady income history for the previous two years. Self-employed individuals must have at least one full year’s tax filing showing self-employment income.
Income limits — Minimum and maximum income guidelines, adjusted for household size, will be posted with the announcement of an open application period. (Please see information in the section called Fiscal Year 2024 Gross Income.) These are subject to change, and having income within these guidelines does not guarantee eligibility.
Housing and Debt-to-Income Ratios – Monthly house payments including property taxes and homeowner’s Insurance must be ≤ 30% of the applicant’s gross monthly income. The applicant’s monthly house payment plus their monthly debt divided by their monthly gross income must be ≤ 40%.
Credit Score— A minimum FICO credit score of 575 is required. If an applicant has no score, they will have the opportunity to prove credit worthiness through alternative sources of credit such as rent, utility, or other bill payments. All applicants should demonstrate a positive recent rent and bill payment history. Those paying little to no rent will be asked to provide evidence of readiness for a mortgage payment through savings or other positive financial management. A credit report will be run for each individual who will be on the mortgage.
You can order a free copy of your credit report from www.annualcreditreport.com,
or by calling 1-877-322-8228.
Collections/Charge-offs/Judgments – Collections and charge-off balances or older debt balances on credit reports and any outstanding judgments must be less than $2,000 at the time of application and must be resolved before the purchase of the home (approximately 7 months).
Bankruptcy – Bankruptcies must have been discharged or dismissed for at least three years at the time of application.
Payment History – All applicants should demonstrate a positive rent and bill payment history. Utilities must be current.
Savings – Applicants must be able to save approximately $1,000 for closing costs and a $500 down payment and any other costs associated with setting up a new home (e.g., moving expenses, utility connections etc.)
Budget Impact — Habitat will evaluate an applicant's monthly net income to determine if it is sufficient for the future home expenses and the applicant's other expenses. We want our homeowners to be set up for success not stress!
In Need of Adequate, Affordable Housing
Consideration is given if the applicant’s present living situation is overcrowded, in poor repair, unhealthy, in an unsafe environment, inaccessible for disabled household members, temporary or unaffordable (rent exceeds 30% of the applicant’s gross income). If qualified financially, applicants will receive a home visit to further assess their need for a Habitat home.
Willingness to Partner
Applicants must be willing to invest at least 200 to 300 hours in sweat equity depending on the number of adults in the household. Households consisting of one adult must earn at least 200 hours of sweat equity. Households with more than one adult must earn at least 300 hours of sweat equity. Sweat equity is earned by building Habitat houses, working in the Habitat ReStore, taking mandatory financial management and home buying courses and helping with events. Willingness to Partner is also measured by immediate response to calls, emails, texts –especially requests for information (24 hours). Please note: You must be comfortable with family and friends knowing that you are purchasing a Habitat home. Your partnership with Habitat can involve news coverage, social media coverage and information about you and your family. (Last names are not used.)
Applicants selected to receive one of the next two houses
must be willing to live in Painesville.
Please note: The information provided here is subject to change. For the most accurate and up-to-date details, and to receive the official application with final information, please complete the request form below.
