Mortgage Requirements

Application Requirements

• Complete Twin Cities Habitat for Humanity’s Homeownership Program
• Meet our Income Eligibility Guidelines
• Be a first-time Homebuyer (haven’t owned a home in the past three years; owners of manufactured homes are eligible)
• Currently live in the 7-county metro area
• Purchase a primary residence

Underwriting Requirements for Approval

• Preferred credit score of 620 – Credit scores between 580-620 or invisible/no credit acceptable with alternative credit documentation
• Closing Costs & Savings Requirement:
  • $3,000 homebuyer contribution to closing costs (Habitat pays additional closing costs)
  • Savings Requirements $1,500 in savings for estimated first year insurance premiums (prepaid prior to closing)
  • $1,800 in additional savings (accessible at loan application through closing)
  • Gift funds allowed.
• Total monthly debt payments no more than 13% of gross monthly income
• No outstanding liens or judgments
• Six months at current job with two years of continuous employment history for full-time jobs. Two years at current position for part-time and self-employed workers.
• Minimum of two years since bankruptcy, with 24 months of re-established credit
• Minimum of three years since foreclosure or short sale
• Maximum of $1,000 in non-medical collections (medical collections do not impact eligibility)