Twin Cities Habitat for Humanity Homeownership Program Process
A better way to buy your first home.
Your first home is a big step. We're here to help you take it confidently. At Twin Cities Habitat for Humanity, we've built a better way to buy, with financial guidance, competitive rates, and a path to ownership that puts you first.
If you’re curious about the full homeownership process with us, this page provides an overview of each step. For more detailed information on each stage of the journey, download the Homeownership Process Guide.
Step 1: Start With a Quick
Eligibility Check.
Ready to buy your first home? Let's see how we can help you get there. First, check to see if you meet our program eligibility requirements. This begins with completing a short questionnaire that takes about 5-10 minutes.
Note: The questionnaire isn't an application. It's just the first step to see if this buying option may work for you.
Step 2: Eligible? Submit Your Application.
You're ready to take the next step. Now is the time to gather documents and complete the program application.
You’ll receive an email with instructions to log into the Habitat Portal and complete a program application. You'll need to submit various documents to verify your eligibility.
Once we've reviewed your application, we'll confirm the best path forward. Whether you're ready to buy now or need some time to prepare, we will share options that can work for you.
Tip: Gather your documents ahead of time. This can help speed up the application process. Also, keep collecting pay stubs, bank statements, tax returns, and W2s/1099s—you’ll likely need to provide them again later.
Step 3: Determine Mortgage Readiness.
Being mortgage-ready simply means you're in a position to get a mortgage, based on our eligibility criteria. If your income, credit, savings, and job history meet the mortgage-ready eligibility criteria, you’ll progress into our Homeownership Program. If you aren’t mortgage-ready yet, you’ll progress into our Financial Coaching Program After you complete the mortgage readiness assessment, you'll follow one of two paths:
If You're Mortgage-Ready:
In the Homeownership Program, you'll move directly to homebuyer education and then begin exploring home options.
If You're Not Yet Mortgage-Ready:
In the Financial Coaching Program, you'll work with one of our financial coaches who will help you develop a personalized action plan.
Step 4: Complete Financial Coaching.
If you’re not yet mortgage-ready, you can complete personalized financial coaching. This step is designed to set you up for long-term success as a homeowner, no matter where you begin.
Step 5: Complete Homebuyer Education.
Knowledge is power—especially when buying your first home. That's why everyone who buys with us must complete Habitat Homebuyer Education classes designed to set you up for success.
Even if you are mortgage-ready, we require homebuyers to attend a Home Stretch© workshop. These sessions are facilitated by local organizations. You can find an upcoming session on the Homeownership Center of MN’s workshop calendar.
Once complete, you’ll receive a certificate of completion recognized by mortgage lenders and other homebuying programs.
In addition to Home Stretch©, you must complete the Habitat Homebuyer Education course.
- Classes cover key topics like maintenance, budgeting, understanding mortgages, the closing process, Homeowners Associations (HOAs), and more.
- Take courses on-demand at your own pace.
Once complete, you’ll receive a certificate of completion.
Step 6: Find Your Home.
Here's where it gets exciting. You've got two great options to find your first home, both with financial support and guidance from our team. Our team will help you determine which option might be best based on your financial situation, needs, and goals.
These are homes that Twin Cities Habitat has built new or renovated to high-quality standards.
- Often more affordable than comparable homes on the open market
- Energy-efficient features that can lower your utility bills
- Several locations in communities throughout the metro area
Habitat-developed homes provide an excellent starting point for bridging into homeownership.
These are homes listed for sale throughout the Twin Cities metro area that you can purchase using our mortgage product and down payment assistance.
- Wider selection of homes across the metro area
- More options in terms of location, size, and features
- Ability to work with a Realtor of your choice
Step 7: Apply For a Loan.
Found your home? Let's make it yours. You'll apply for your mortgage through TCHFH Lending, Inc., our lending subsidiary that's 100% focused on first-time buyers like you.
The loan application and approval process typically takes 45-60 days from when you find a home to when you're ready to close.
Most buyers in our program qualify for down payment assistance. This can significantly reduce the upfront costs of buying your home.
Step 8: Close and Celebrate!
This is it: the moment when your first home becomes your home. Closing day is when everything becomes official, and you get the keys to your future.
You'll sign your mortgage note, deed, and other legal documents, you’ll pay any remaining down payment and closing costs, and you'll receive the keys to your new home!
Continued Homeowner Support
Your experience as a Habitat homeowner doesn’t end at closing. We also offer post-purchase support to help you transition into homeownership.
Our Homeowner support team will call and check in to see how things are going during the first year of homeownership.
We also offer classes and digital resources to help homeowners develop the knowledge, skills and resources to thrive in their homes.
Learn more about post-purchase support and programs on our Homeowner Resource Hub.
Common questions about our homeownership program:
Q: Can I apply if my credit score is below 620, or if I have invisible credit or no credit?
If your credit score is below 620, or you have no credit/invisible credit, you may be eligible for the Financial Coaching Program, and we invite you to apply.
Q: What income level do I need to qualify?
Our program serves households with incomes below 80% of area median income, which varies based on household size. For 2025, the range is from $53,000 to $104,200 for a family of four, but please check our current income guidelines to see the specific range for your household size.
Q: How much money do I need to save for a down payment?
With our down payment assistance programs, Habitat homebuyers do not need to bring a down payment to buy their first home. There are closing costs that buyers must cover, and they are capped at $3,000 for homebuyers, no matter the buying track.
There are some additional costs that come with closing on a home, including the premium for the first-year of homeowners’ insurance.
To make sure you have enough to pay for these known expenses, Habitat’s mortgage-ready criteria requires that you have a minimum of $6,300 in available funds before you start shopping.
Q: Are there monthly mortgage payment guidelines?
Yes. When you purchase a home with Twin Cities Habitat for Humanity using the TruePath Mortgage product, your monthly payment will be set at 30% of your gross income. This payment is calculated using principal and interest, taxes, insurance, as well as HOA fees and ground lease fees (when applicable).
The payment is determined at the time of mortgage application and finalized at the closing. Your principal and interest payment amount will not change over time. However, expenses such as taxes, insurance, HOA fees, and ground lease fees may increase based on factors outside of Twin Cities Habitat’s, or your, control.
You are responsible for paying any increases in taxes, insurance, HOA fees, or ground lease fees throughout your mortgage’s 30-year term, as well as after your mortgage has been paid off. Building a strong budget that supports and plans for future changes to your expenses is a great way to set yourself up for success in homeownership.
Q: How many homes does Habitat develop each year?
Twin Cities Habitat develops dozens of homes annually across the seven-county metro area. These include newly built homes and renovated properties.
Q: If I choose the open market option, can I buy any home for sale?
You can purchase homes within your approved price range that meet our basic requirements for safety and condition. Your pre-approval letter will indicate the maximum purchase price you qualify for.
Q: How does Habitat support homeowners after purchase?
Habitat offers a variety of classes and digital resources to help homeowners develop the knowledge, skills and resources to thrive in their homes. Habitat has a dedicated team to assist with questions that come up with homeownership that can be contacted via our Homeowner Resources Hub.
Still Have Questions?
We're here with answers.
Reach out to our Client Services Team—we'd love to help you take the next step.