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Homeownership

Lake-Geauga Habitat for Humanity believes that everyone should have a safe, affordable place to call home. When you partner with us, you don't just build a house, you build a better future with support, resources and opportunities available exclusively to the Habitat community. We've secured two lots in Painesville for our next two homeowners!

Eligibility Criteria

Eligible applicants must be U.S. citizens or permanent residents, meet criminal background check requirements, and have an ability to afford homeownership, a housing need, and a willingness to participate in the Habitat program as described further below. During each application period, additional criteria may apply.

Charné and her family | Homeowner #97 | Painesville, OH

Household Income Requirements

To qualify for Habitat homeownership, the total annual gross income of all individuals aged 18 or older who will be living in the home must fall within 45%–80% of the U.S. Department of Housing and Urban Development (HUD) Area Median Income for Lake and Geauga Counties. This limit is adjusted based on household size. 

What is gross income?
Gross income is the total amount of money earned before any taxes or other deductions are taken out of a paycheck. This is different from net pay, which is the amount received after deductions.

How to calculate gross income?

Income for all individuals who will be living in the household (over the age of 18) must be counted even if an individual’s name will not be on the mortgage. HUD Area Median Income for Lake and Geauga Counties as adjusted by household size.

 

To calculate the gross annual income, multiply the individual’s hourly rate times the number of regular hours worked each week times 52 weeks in a year.

 

For example, $20.00 an hour x 40 hours a week = $800.00 a week. $800 x 52 weeks = $41,600 gross annual salary.

To calculate gross monthly salary, divide the gross annual salary by 12 months. $41,600/12 = $3,466.66.

CALL 440-226-3000 x7 if you have any questions.

Financial Criteria (income, credit, savings)

Eligible applicants will demonstrate ability to afford the estimated monthly mortgage and household expenses by meeting the criteria below. Income history — Habitat requires steady income history for the last two years in the United States with at least six months of history for current employment or income sources. Self-employed individuals must have at least one full year’s tax filing showing self-employment income. Income limits — Minimum and maximum income guidelines, adjusted for household size, will be posted with the announcement of an open application period.  For income limits of any open or recent application periods, please see links below. These are subject to change, and having income within these guidelines does not guarantee eligibility. Park Preserve 2025 Credit — A minimum FICO credit score of 600 is required.  If an applicant has no score, they will have the opportunity prove credit worthiness through alternative sources of credit such as rent, utility, or other bill payments.  All applicants should demonstrate a positive recent rent and bill payment history.  Those paying little to no rent will be asked to provide evidence of readiness for a mortgage payment through savings or other positive financial management. Collections/Judgments — Collections and charge-off balances or other old debt balances on credit reports and any outstanding judgments must be less than $2000 at the time of application and must be capable of being resolved before the purchase of the home (approx. 6-9 months after application).  An additional $2000 of medical collections may be allowed if making payments on these. Bankruptcy — Bankruptcies must have been discharged or dismissed for two years at the time of application. Debt Ratio — The total of all monthly loan payments, including estimates for deferred student loans and the future mortgage, must not exceed 41%. Budget Impact — Habitat will evaluate an applicant's monthly net income to determine if it is sufficient for the future home expenses and the applicant's other expenses. We want our homeowners to be set up for success not stress! You can order a free copy of your credit report from www.annualcreditreport.com, or by calling 1-877-322-8228. Savings — Applicants must be able to save approximately $3,000 for closings costs within approximately 6-9 months from application.  Applicants will have the opportunity to participate in an optional matched savings program provided by Pinnacle Financial Partners who will contribute up to $1,000 towards applicant's closing costs if all program guidelines are met.

FY 2024 Income Requirements

Select the household size that best represents your current living situation, including all children and adults.

Each tab displays the gross annual income requirement for our homeownership program.

Gross income includes all earnings before taxes and deductions, such as wages, child support, alimony, Social Security benefits, pensions, disability payments, unemployment benefits, and other regular financial support.

Household Size: 1

Gross Annual Income: $30,650 - $54,450

Sweat Equity Requirement:

Household with 1 adult: 200 Hours

Learn more about Sweat Equity

Ability to Pay a Monthly Mortgage

Average monthly house payment – The average monthly house payment ranges between $900 - $1,500 but could be higher. This figure includes estimated property taxes and homeowner’s insurance which may increase from year to year. Your mortgage amount (principal) will remain the same throughout the life of the loan.

 

Housing and Debt-to-Income Ratios – Monthly house payments including property taxes and homeowner’s Insurance must be 30% or less than the applicant’s gross monthly income. The applicant’s monthly house payment plus their monthly debt divided by their monthly gross income must be 40% or less.

 

Income history – Habitat requires a steady income history for the last two years in the United States. Self-employed individuals must have at least one full year’s tax filing showing self-employment income. Qualifying income may include, but is not limited to child support, alimony, SSA, SSI, retirement and income from your employment.

Credit score – a minimum FICO score of 575 is required. If an applicant has no score, they will have the opportunity to prove credit worthiness through alternative sources of credit such as rent, utility, or other bill payments. All applicants should demonstrate a positive rent and bill payment history. Those paying little-to-no rent will be asked to provide evidence of readiness for a mortgage payment through savings or other positive financial management.

Collections/Charge-offs/Judgments – Collections and charge-off balances or older debt balances on credit reports and any outstanding judgments must be less than $2,000 at the time of application and must be resolved before the purchase of the home (approximately 7 months).

Bankruptcy – Bankruptcies must have been discharged or dismissed for at least three years at the time of application.

Budget Impact – Habitat will use the applicant’s monthly net income to determine if it is sufficient for future homeowner expenses and applicant’s other expenses. We want our homeowners to be set up for success, not stress!

Evictions/Foreclosures – No evictions or foreclosures within the past 24 months. Current on all utilities – For the last 3 months. 

Savings – Applicants must be able to save approximately $2,000 for closing costs and a $500 down payment. and other costs associated with setting up a new home (e.g., utility connections down payment.)

Housing Need

Applicants generally meet the housing need criteria when their household income is below the current household limits (announced prior to each application round). Higher priority may be given to applicants with additional housing concerns such as living in overcrowded conditions, temporary homes, or unsafe environments; needing accessibility for a household member with a disability; or paying rent higher than 30% of income. If qualified financially, applicants will receive a home visit to further evaluate their need. Applicants should not have owned a home in the last three years.

Willingness to Partner

Applicants must be willing to invest 200 hours in sweat equity if only one household member is over the age of 18 or 300 hours in sweat equity if more than one household member is over the age of 18. Sweat equity can be earned by building Habitat houses, working in the Habitat ReStore, taking mandatory financial management and home buying courses and helping with events. Willingness to Partner is also measured by immediate response to calls, emails, texts –especially requests for information (24 hours). If selected for one of the next two houses, applicants must be willing to live in Painesville. Please note: You must be comfortable with family and friends knowing that you are purchasing a Habitat home. Your partnership with Habitat can involve news coverage, social media coverage and information about you and your family. (Last names are not used.)

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Administrative Offices
34071 Vine St, Eastlake, OH 44095
440-226-3000

ReStore Lake County 
34225 Vine St, Eastlake, OH 44095
440-226-3212

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Lake-Geauga Habitat for Humanity is a 501c3 nonprofit organization with a Gold Seal of Transparency through Candid, EIN #34-1715023

Copyright 2024 Lake-Geauga Habitat for Humanity | All Rights Reserved

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