FAQs
Partners such as volunteers, donors, and sponsors are imperative in our work to eliminate substandard housing in our community. Donors, sponsors and in-kind services/materials provide the funds to buy needed land, materials, and tools. Volunteers provide labor, which helps us keep costs down – and hopes up.
Skagit Habitat relies on donations from individuals, corporations, foundations, the faith community, and some government funding, all to help defray the high cost infrastructure, land, and building materials. Mortgage payments are used to support our home building efforts as well as proceeds from the Skagit Habitat Store. We do not rely on any one source of revenue.
Skagit Habitat for Humanity provides a unique opportunity for hardworking individuals and families to help build and buy their own homes.
Skagit County residents who apply work through the application process with our Program Manager. If eligible, applicants are then evaluated by our Homebuyer Selection Committee. Before final selection is confirmed by the Board of Directors, applicants must be pre-approved for a loan from their lender of choice. Once approved by the Board of Directors and accepted into the program, families will complete required classes and begin working their sweat equity.
We build houses with people in need, without prejudice. The three criteria that drive the qualification process are need, ability to pay, and willingness to partner with Skagit Habitat. Habitat for Humanity International, the U.S. Fair Housing Act of 1968 and the Federal Equal Credit Opportunity Act (ECOA) prohibits creditors from discrimination in the sale of housing on the basis of race, color, religion, national origin, sex, familial status, age (provided the applicant has the ability to enter into a binding contract) or disability.
No. While our mission is inspired by Christian teachings, all who desire to be a part of our work are welcome as volunteers, supporters and future homebuyers. Anyone who believes that everyone deserves a safe, permanent, affordable place to live is welcome to partner with us regardless of race, color, religion, national origin, sex, age, disability, gender or political views.
Skagit Habitat understands that there are many types of families, and all are welcome to apply to our program.
We build in Skagit County only.
At Habitat for Humanity, sweat equity is a new homeowner investing in their home or one for another family. It’s not a form of payment, but an opportunity to work alongside volunteers who give their time to bring to life a family’s dream of owning a home. It is a term for partnering with us to help build your home and further Habitat’s mission.
Sweat equity is the ownership interest that is created as a direct result of hard work by the owner(s), ‘contribution to a project or enterprise in the form of effort and toil’ … It is a mode of building equity for cash – strapped future homeowners, since they are unable to contribute a down payment for a conventional loan.
Skagit Habitat homes are sold at Fair Market Value. The actual dollar amount varies depending on the specific project. Monthly mortgage payments vary depending upon the cost of the home and length of the mortgage. Payments will not be more than 33% of a homeowner’s gross monthly income for mortgage and land lease fees if applicable. Monthly mortgage payments consist of the mortgage loan amount (principal & interest if applicable) and escrow payments (property taxes, homeowner’s insurance and flood insurance if applicable) on the first mortgage. This helps to ensure that you are able to continue making payments on your home while having enough remaining income to provide a healthy, stable life for you and your family. Habitat also requires a pre-payment to be made prior to the mortgage closing to be applied towards the initial escrow.
Homebuyer mortgages are held through the bank of the Homebuyer’s choice. All mortgages are set at 33% of the Homebuyer’s gross monthly income, keeping their mortgage permanently affordable.
Income includes any money coming to the household that is reportable to the IRS – from any source, whether or not it can be taxed. Examples include wages, self employment/freelance income, SSI/SSDI, VA/Disability, and/or retirement. Food stamps DO NOT count as income.
From the submission of an application through the finalization of the home purchase, income and credit is reviewed periodically. Any charges in either report could impact program eligibility.
Skagit Habitat requires that you receive enough monthly income to be able to afford a Habitat home. Affordability is determined through income such as work, SSI or other sources. Your mortgage payment cannot exceed 33% of your total monthly income.
A credit score (FICO® scores) is a number that is between 350-850, based on your likelihood of repaying a creditor on time. Your credit score is used by lenders to determine your credit risk and interest rate for your home loan. Although it is not required, it is recommended to have a score higher than 620.
From the submission of an application through the finalization of the home purchase, income and credit are reviewed periodically. Any changes in either report could impact program eligibility, and the ability to secure a home loan.
We all have some debt such as an auto loan, credit cards, or a student loan. All of these may negatively affect your credit score. Skagit Habitat will obtain a credit history in order to review any accumulated debt and how you have handled payments in the past. It may be determined that your debt load will impede your ability to take on more debt-a mortgage. It is best to keep your debt-to-income ratio below 36%.
Good credit means that you pay all your bills on time each month and you don’t have excessive debt. Your credit is your responsibility and maintaining good credit is one of the most important things you can do for your financial health. Having good credit means that you have a good credit report. A credit report is a record of the personal financial transactions that make up your credit history, such as credit cards, car loans, personal loans and negative items such as collections from utility or telephone companies.
How does your credit history look? You can check yours by getting your credit report. You are able to get a free credit report once a year from each of the three reporting agencies: Equifax, Experian, and TransUnion. To obtain a copy of your free credit report click on the following link: www.annualcreditreport.com
The Homeowner Selection Committee considers the whole picture of an applicant and looks for applicants who are ready to accept the responsibility of homeownership. At the same time, we do not want to sell an applicant a home that she or he cannot afford. We are unable to partner with applicants who have active, unpaid judgments or liens. Excessive debts and/or very recent unresolved collections may also disqualify an applicant.
Applicants who have filed for bankruptcy in the past should show a good credit history since the bankruptcy, and bankruptcies must have been discharged at least five years prior to the application for housing. Certain requirements may be waived in cases of personal or natural disaster.
Having student debt does not automatically disqualify you from our Homeownership Program. The amount of student debt, your current income, and the other debt that you may have will be evaluated during the application process to determine your debt-to-income ratio.
Skagit Habitat obtains background checks and sexual offender checks on all adult household members. People will sign release forms included as a part of their application. A criminal history does not automatically disqualify an applicant; any issues that come up in a background check will be dealt with on an individual basis.
Homeownership is a huge responsibility. Habitat’s goal is to help you become not just a homeowner but a successful homeowner. If homeownership is your ultimate goal, but you’re not quite financially ready to apply, seek tools that can help and/or a credit counselor.
If you plan to apply for Habitat’s Homeownership Program during the next application round, you can prepare by collecting your financial documents. Get a recent copy of your credit report and check to make sure the information is correct. You can get one free copy of your credit report each year at www.annualcreditreport.com. If you have outstanding negative credit items, you may want to develop a plan to address them with a a credit counselor.
Only individuals who are currently living in the household can be considered when determining household size and the number of bedrooms the applicant qualifies for. A child is only considered in regards to household size if the applicant has at least 50% custody of that child. We do occasionally make exceptions and definitely want to make sure that household members are not discounted when inappropriate. If a person is pregnant during the application process, the unborn child will be counted towards household size. Please be sure to explain any household size situations in your application.
No. If you are legally married, Skagit Habitat requires that both spouses be part of the application and apply as co-applicants.
These homes are not a custom built home. Skagit Habitat will choose the design of the house in accordance with the size of the lot and the family selected. If a homebuyer requires structural modification for a handicapped family member, this is determined prior to architectural design. No change in design will be considered. Homeowners may choose, when donations are not available, the interior and exterior color, lighting, flooring and countertops based on budgets.
Skagit Habitat will match your family to a development and home based on the information you provide and the locations in which we are building.
Skagit Habitat retains ownership of the land while our Homebuyers purchase the home itself. This long-term, renewable Land Lease Agreement helps keep the homes permanently affordable by reducing the upfront purchase priceSSSNNnNo. Skagit Habitat retains ownership of the land while our Homebuyers purchase the home itself. This long-term, 99-year renewable Land Lease Agreement helps keep the homes permanently affordable.
Absolutely! The homebuyer will be the legal owner of the home and will have a mortgage obligation.
Yes. The homeowner will still adhere to any bylaws in place by the land lease agreement and applicable City/County codes.
Skagit Habitat sells homes to people who are looking for long-term ownership, but you may sell your home, with a First Right of Refusal to Skagit Habitat. Most of our partners continue to live in their homes for long periods of time. To help make sure that we are selling to households that need a home to live in and not investors, our partners sign long-term resale restriction agreements. Generally, during the term of the agreement, you can only sell the home if you first offer to sell the home to Skagit Habitat (and sometimes a city or county that provided funding to build your home) and you can only sell it at an amount so that it remains affordable to qualified buyers. Please call us for more details.
Our requirements are that you do not own a home anywhere else. This applies even if you are a partial owner or co-signer, even if you do not live in that other home. You may still qualify if you owned a home 3 years or more ago. You do not have to be a first time home buyer to qualify.
No. The legal documents for your Skagit Habitat home restrict the use of the property as a rental. All Habitat homes must be owner occupied, meaning you, the owner, MUST live in your house. We will check this annually.
If selected, you will be required to complete a portion of your sweat equity hours at the construction site. No prior construction experience is required, as Skagit Habitat’s staff will provide on-site supervision and training.
Each applicant must complete a total of 150 hours of sweat equity. For a two-applicant household (ex. married couple), a total of 300 hours of sweat equity must be completed.
150 Sweat Equity Hours:
- 50 Personal Hours (ex. Skagit Habitat Store, special Skagit Habitat events)
- 50 Construction Hours (on their own or another future Homebuyers’ home.)
- 50 Friends/Family Hours (hours contributed by other family members who will be living in the home; family members who will not live in the house; and/or by friends and other volunteers.)
There are many factors that can impact how long the process of building a Habitat homeowner can take. We will keep you informed of where you are in the process along the way. Depending on when you were selected, other homes may be in process prior to your home. Once the construction of your home begins, it can be 9 to 12 months, though there are a number of variables that contribute to how long it takes to complete a home.
After your application is processed and accepted, it can take up to 2 years before you move in. The construction process is complex with many variables including funding sources, the construction schedule, building requirements and numbers of volunteers. Move-in dates are also determined by the loan and sale process, which involves steps for you, your lender, DPA jurisdiction, title and escrow, and Skagit Habitat staff to complete.
