Starter Home Initial Eligibility:
The Habitat for Humanity Starter Homeownership Program is a hand up, not a handout. Future homeowners qualify based on need, ability to pay a mortgage, and maintain their home.
Applicants must be 18 or older and must have lived and worked in Flagstaff for at least 1 year.
Applicants must earn between 50% AMI (Area Medium Income) and 80% AMI based on their household size. The chart below shows the current minimum and maximum gross annual income separated by household size for our program. These numbers typically change every year and are set by the U.S. Department of Housing and Urban Development based on cost of living.
*Includes all gross income (before taxes and deductions) anticipated for the current year earned by all adult household members (18 and over). Combine all regular employment, self-employment, Social Security, Supplemental Social Security, military income, child support, alimony, pension, retirement, recurring cash and any other miscellaneous income in the total amount.
Applicants’ monthly housing costs* cannot exceed 35% of their gross monthly earnings. Additionally, applicants’ maximum debt-to-income ratio (DTI**) cannot exceed 43%
*Housing costs calculations: monthly mortgage/ gross earnings per month, e.g., $1,150/$4,500=26% housing costs.
** DTI: monthly mortgage + debt monthly payments/gross earning per month, e.g., $1,150 + $500 car payment, + $200 credit card payment=$1,850/$4,500=41% debt-to-income.
Applicants must not have owned a home within the past 3 years.
Applicants must be US citizens, legally permanent residents, have a work authorization status or hold another form of residency/work permit.
Applicants cannot have filed for bankruptcy in the last 4 years.
This is not an all-inclusive list; it provides the initial prescreen for you to determine if you meet the starting criteria to complete an application for the Starter Home Program.
