Foundations of the Habitat Program
The Habitat Homeownership Program is an investment in the future. It typically takes 18 – 24 months for a family to complete the program. Requirements include:
Save $4,000 during the lifespan of the program
• $3,000 closing costs
• $1,000 emergency savings
Complete 300-400 sweat equity hours
• Financial literacy classes
• Individualized credit counseling
• Home maintenance workshops
• ReStore volunteering
• Construction
Pay on existing debt and not acquire any additional debt
• Timely monthly payments
• Pay off existing debt
QUALIFICATION GUIDELINES
To qualify for Habitat homeownership, eligible applicants demonstrate an ability to make a monthly mortgage payment, have a household income within program limits, and a willingness to participate in the Habitat program.
2024 Income Guidelines
45%-80% AMI with a Minimum Income of $35,000 annually.
| Family Size | Annual Income |
| 1 | $35,000 – $36,680 |
| 2 | $35,000 – $41,920 |
| 3 | $35,000 – $47,160 |
| 4 | $35,000 – $52,400 |
| 5 | $35,000 – $56,600 |
| 6 | $35,000 – $60,800 |
| 7 | $36,563- $65,000 |
| 8 | $38,925 – $69,200 |
Debt Ratio — The total of all monthly loan payments, including estimates for deferred student loans and the future mortgage, must not exceed 36%.
Credit:
- Medical Collections Accounts must be less than $3,000
- Student Loans cannot exceed more than 1.5 years of your annual gross income
- No bankruptcies/foreclosures in the last five years
- Collections and charge-off balances or other old debt balances on credit reports must be less than $15,000 at the time of application and must be capable of being resolved before the purchase of the home
- No outstanding judgments
Rental History:
- Minimum 12-month rental history
Closing Costs & Emergency Savings:
- Ability to save $4,000
WILLINGNESS TO PARTNER
Applicants must be willing and able to attend homeownership classes for several months on scheduled Tuesday and Thursday evenings and a few Saturdays. Volunteer to build their own home and/or others’ homes, and volunteer 25 hours in the Habitat ReStores. Habitat calls this “sweat equity.” (Accommodations can be made for applicants with disabilities).
Applicants must be willing to accept the location and design of homes Habitat has available at the time of Lot Selection.
Habitat Forsyth Program Classes
Thanks to our many partners, Habitat Program Classes are held most Tuesday and Thursday evenings at the Habitat Housing Education Center. These classes are designed to help prepare Homeowners in Progress for success once they purchase their Habitat home.
Financial Peace University
Geared to helping participants use tools and strategies needed to set and achieve goals; build skills in managing money, credit, and debt; and choose financial products that are right for them.
Piedmont Federal Presents Borrowing Basics
Designed to help participants understand the basics of borrowing, including different types of loans, the importance of creditworthiness, and the implications of debt. Attendees will learn how to make informed borrowing decisions that align with their financial goals and needs.
FIrst Bank Presents Budgeting
Empowers participants with the tools and knowledge necessary to create and maintain a personal budget that fits their lifestyle and financial goals. Attendees will learn how to track their income and expenses, set realistic financial goals, and make informed spending decisions.
Money Canvas Budgeting Program
This one-on-one budgeting class offers personalized guidance and support to help individuals develop a customized budgeting plan that aligns with their unique financial goals and circumstances. Through collaborative discussions and tailored strategies, participants will gain clarity, confidence, and practical tools to take control of their finances and achieve financial success.
Piedmont Federal Presents Managing Debt
This class provides essential strategies and tools for effectively managing and reducing debt. Participants will learn about budgeting, prioritizing debt payments, understanding credit scores, and negotiating with creditors.
Credit 101
How to read your credit report, preventing credit fraud and how to improve your credit score. Plus: Find out impacts of credit breaches and what to do to safeguard your credit.
Mortgage & Homeowner Insurance
Building a better understanding of the legal terms and forms associated with closing, restrictions written into deed of trust, escrow process, Habitat loan model, and required hazard insurance coverage.
Understanding Mortgages and HOAs
This class offers a comprehensive guide to understanding mortgages and the role of Homeowner Associations (HOAs). Participants will learn about the mortgage process, different types of mortgages, interest rates, and repayment plans, as well as the functions and benefits of HOAs, including rules, fees, and community impact.
SECU Insurance
SECU will talk about the various ways we can use insurance to protect our assets and financial future.
SECU Consumer Fraud and ID Theft
Learn how to protect yourself online.
SECU Estate Planning
This class introduces the fundamentals of estate planning, including wills, trusts, powers of attorney, and healthcare directives. Participants will learn how to create a comprehensive plan that ensures their wishes are honored and their assets are managed and distributed according to their preferences.
Home Maintenance
These classes provides practical knowledge and hands-on skills for maintaining and repairing common home systems. Topics include basic plumbing, electrical work, drywall repair, and flooring maintenance. Participants will learn how to handle minor repairs and upkeep to keep their homes in top condition.
Lawncare and Landscaping
Providing exterior home beautification tips and ways to be energy efficient and sharing practical and easy ways to make the living environment (inside and outside) safe and comfortable.
Working Sweat Equity on Habitat Home Sites
An introduction to the process of building your home and setting expectations for your role in the building process.
GreenTree Wellness Support
Self-care for the journey to home ownership.
Second Harvest Presents Cooking Matters
This course is designed for individuals looking to enhance their culinary skills while effectively managing their food budget. Participants will learn practical cooking techniques, nutritional guidelines, and strategies for stretching their grocery budget without sacrificing quality or taste.
Fire Safety with City of Winston-Salem
Home Fire Safety course provides essential knowledge and practical skills to prevent, prepare for, and respond to home fires. Topics include fire prevention, proper use of fire extinguishers, creating and practicing a fire escape plan, and maintaining smoke detectors.
Access City of Winston-Salem Services
Provides an introduction to the various services offered by the city, including public safety, waste management, public transportation, utilities, and recreational facilities. Participants will gain insights into how these services function and how to effectively utilize them to improve their quality of life.
City of Winston-Salem University
Interactive session about different city departments. Discover the roles of departments such as Fire, Sanitation, and Recycling, and learn how to interact with each one.