Changing Lives, Strengthening Communities Now, we will start with information specific to Habitat for Humanity and our affiliate. Our goal with Habitat for Humanity Chicago South Suburbs is to change lives and strengthen communities. Hopefully, we will be able to change the lives of some of the people in the room today.

About HFH Habitat for Humanity is an international ecumenical Christian non-profit organization that seeks to eliminate poverty housing by making simple decent housing affordable for all. The Habitat for Humanity Chicago South Suburbs (HFHCSS) affiliate was founded in 1988 to carry out the international mission on a more local level – in the south suburbs. Since our beginning, we have helped 48 families to acquire the dream of homeownership through rehabbing or building simple decent homes. We currently have homes in the following communities: Habitat for Humanity International is a non-profit housing ministry that was founded in 1976 from a concept developed by Millard and Linda Fuller. The goal of Habitat for Humanity International is to eliminate poverty housing by making homeownership attainable and affordable for low-income families and individuals. There are multiple affiliates all over the world. Habitat for Humanity Chicago South Suburbs is the south suburban local affiliate working to carry out the international mission. Currently, we are working in partnership with the communities of Lansing and Park Forest. Chicago Heights Park Forest Lansing Harvey Dixmoor Riverdale

How Does HFH Make Homes Affordable? There are five aspects of HFHI concept that make homeownership affordable: Interest Free Mortgages Initial payment cap at 30% of Gross Monthly Income (GMI) Sweat Equity Volunteers Donations Fundraising HFH does not give homes away. Homeowners pay a 0% interest mortgage. Also, homes are never more than 30% of your gross income. Homeowners help to rehab and build their own home and the homes of other people in the program. They also help the affiliate in other ways by working at the HFHCSS ReStore and speaking or volunteering at various engagements. Volunteers come from all over the world to assist HFH. You will often see volunteers at the various worksites where homes are being rehabbed or built. Under the supervision of skilled craftsmen, volunteers work diligently allowing the affiliates to keep staff cost low. Volunteers are the heart of the organization. Some skilled labor services such as plumbing, roofing, electrical are donated. Whirlpool also donates new stoves and refrigerators for each of our homes. Fundraising is an vital aspect for funding the operation of the organization. Fundraising helps the affiliate to run the office, process required paperwork and continue to seek funds.

What is Needed to Qualify for a Home? The following criteria is used to determine eligibility for a HFHCSS home: Applicants must be able to afford a house Income Stability of employment Applicant must be credit worthy Indebtedness History of credit payments There must be a housing need Applicants must demonstrate a willingness to partner To qualify for a home: Applicants must meet income requirements Must demonstrate steady and consistent employment for a minimum of one year Level of debt must not exceed 46% of their gross monthly income (your income before taxes) Has demonstrated consistent timely required payments to creditors There must be a housing need (housing need will be discussed in a future slide)

How Is Affordability Determined? Annual income must fall below 80% of the median income guidelines: Applicant must have steady employment as demonstrated by one year of consistent employment Household Size: Minimum Income Maximum Income Family of 1: Family of 2: Family of 3: Family of 4: Family of 5: Family of 6: Family of 7: Family of 8: $15,950.00 $18,200.00 $20,500.00 $22,750.00 $24,600.00 $26,400.00 $28,250.00 $30,050.00 $42,500.00 $48,550.00 $54,600.00 $60,650.00 $65,550.00 $70,400.00 $75,250.00 $80,100.00 Annual income must fall below 80% of the median income guidelines. For example, if you look at a family of 3. There income must be between $20,500.00 and $54,600.00. You must have steady employment as demonstrated by one year of consistent employment. However, when affordability is assessed, your most recent three paycheck stubs will be used. Additional guidelines may apply upon review.

How Is Creditworthiness Determined? A credit report is obtained as part of the application process. The following factors are reviewed: Applicant’s credit score Applicant’s indebtedness; long-term debt can not exceed 46% of the gross yearly income Applicant’s history of debt repayment Your credit score is not a single determinant of your creditworthiness. We do look at the whole picture but generally speaking a credit score below 525 raises major red flags. Bankruptcies should have been discharged for at least one year. There should be no liens. Long-Term debts are: car loans, student loans, credit card debt and other debt contracts. When we look at debt repayment, we want to see if you have been paying your bills consistently and on time over the last year or so.

How Is Housing Need Determined? Housing need is shown if a household’s current living situation meets any of the following conditions: Substandard Overcrowded Unaffordable Inaccessible housing Substandard conditions may include: inadequate heating, electricity and water, structurally unsafe conditions, rodent/roach infestation, dangerous neighborhoods Over-crowdedness is determined by number of bedrooms, number of persons in the household, ages and gender of household members or if the applicant’s family is currently living in the home or apartment of someone else. Unaffordability is determined if the household spends more than 40% of their monthly income on rent Inaccessible housing may be due to disability, homelessness, etc.

What Is Willingness to Participate? Applicants must be willing to comply with the requirements of the program. Program requirements: Establish escrow account and make monthly deposits in account determined by HFHCSS Fulfill sweat equity hours by category Hours for a household with a single adult is 400 hours; monthly minimum of 20 hours Hours for a household with two adults is 500 hours; monthly minimum of 25 hours Maintain monthly communication with your HFHCSS buddy Participate in budget and home management programs Currently HFHCSS has a working relationship with Harris bank. The family must have established an escrow account and make monthly deposits to total $1500.00 by the time of closing. The escrow is used to pay property taxes and home insurance. Sweat Equity requirements vary based on the number of applicant adults. A single adult household is required to complete 400 hours whereas a two adult household has to complete 500 hours. A two adult household is determined if there are co-applicants. Hours are divided into categories that each have a minimum requirement. Hours can also be attained through the help of family and friends. There are also opportunities to receive donated hours. When you are accepted into the program, you become a partner family. You will be assigned a buddy from the Family Development Committee who is a liaison between the family and HFHCSS. The buddy will help you to keep track of your sweat equity hours, answer any questions about the program or the process and be a resource for you.

Mortgage Payment Phase Quick View Timeline Qualifying Phase Sweat Equity Phase Dedication Phase Closing Phase Mortgage Payment Phase Title Transfer Phase Qualifying Phase Sweat Equity Phase Dedication Phase Closing Phase Mortgage Payment Phase Title Transfer Phase Attend Orientation Submit A Completed Application Office and Committee Review Be Available for Home visit Comply with HFHCSS Program Requirements Fulfill Sweat Equity Hours Maintain Communication with Buddy Establish escrow account and make monthly deposits Participate in budget and home management programs Provide HFHCSS with guest list Make sure house is clean and set-up for the dedication Invite pastor or clergy person to bless home Provide payment from escrow for closing Attend closing Review and sign closing documents Review delinquency/foreclosure policies Make on time and full mortgage payments monthly to Harris Bank Receive title transfer Close escrow account Pay and maintain real estate taxes and insurance bills from own account In general, there are six phases to our process from the begin which is the “Qualifying Phase” to the end which is the “Title Transfer Phase”. Review Timeline Extensively – Phase by Phase

Stop and Review the actual application. Application Review

Frequently Asked Questions I lost my home through foreclosure. Can I still qualify for a Habitat home. --Yes. You must prove that the foreclosure process has been completed and then your credit report must meet our guidelines. Can I buy the home and then rent it to a tenant? --No. Your mortgage will have provisions requiring you to be the occupant. This would be a violation of your mortgage and the house would be foreclosed. Can I purchase a home if I have had a bankruptcy? --Yes. Your bankruptcy must have been discharged for one year and you must demonstrate responsible financial management since the discharge. 4. What types of homes does Habitat have for families to purchase? --HFHCSS has simple decent homes. Currently we are only working to rehab homes. Our job is to bring the homes up to code and make sure they are structurally safe. We do not build garages or finish basements. Our inventory of home come in a variety of sizes and designs. The size of home for which your family will qualify is based on your household size and inventory.