HOME PURCHASE
Building Bright Futures
Home Purchase Program
Since 1989 Habitat for Humanity of Montgomery and Delaware Counties has developed and sold newly constructed and rehabilitated homes to applicants who live or work in Montgomery or Delaware Counties and earn between 30% and 80% of the area median income as determined by the US Department of Housing and Urban Development. Through Habitat MontDelco Home Purchase Program, qualified homebuyers purchase homes under our affordable lending model, resulting in increased access to homeownership opportunities for historically disinvested communities. Every Habitat home is mortgaged at 0% interest for the full appraised value, while ensuring no Habitat homebuyer pays more than 30% of their income on housing (including property tax and homeowners insurance).
Opportunities
Please note that applications for homeownership are currently closed and will only re-open once our next housing opportunity becomes available.
If you would like to be notified when applications open next, submit a home purchase inquiry, by completing the form linked below.
What are Affordable Mortgages?
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Habitat MontDelco believes that homeownership should be affordable and attainable. We ensure affordability by providing 0% interest mortgages with an overall housing cost capped at 30% of the borrower’s gross annual income at the time of application.
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This means that mortgage principal, property taxes, and insurance are all folded into an affordable monthly payment for the buyer, capped at 30% of their gross income.
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Habitat is sensitive to how affordable home purchases can impact local property values. To stabilize local property values, Habitat MontDelco mortgages are typically structured in two parts:
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The first is 30-year 0% interest conventional mortgage loan, which is paid down each month.
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The second part is a “silent” mortgage which secures the difference in value between the first conventional mortgage and the appraised value of the home, ensuring two things:
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The sale of each Habitat home is recorded as a full appraised value sale thus stabilizing home values in the communities where we build.
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The homebuyer is never housing-cost burdened by a Habitat home.
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How Can I Qualify for Home Ownership?
General parameters for Home Purchase Program eligibility typically include, but are not limited to:
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You must have lived or worked in either Montgomery or Delaware County for at least one year prior to applying.
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You must be willing to contribute up to 400 Partnership Hours, based on family size, to be spent on the construction site and in educational workshops, among other activities.
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You must be able to provide Proof of Citizenship or Permanent US Residency (see additional details page for more info)
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You don’t have to be a first-time homebuyer, but if you already own a home at the time of application you may not qualify.
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You must have an annual household income between 30% to 80% of the AMI (Area Median Income) as determined by HUD.
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You must be willing to partner and agree to Habitat MontDelco Program terms including but not limited to Partnership Hours Policy, Media and Marketing Policy, Equity Share Agreement, Partnership Agreement Terms, etc.
Reference the chart below for Habitat’s income guidelines:
You must have demonstrable housing need, which can be defined as any of the following:
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Cost burden: Applicant(s) are paying more than 30% of their monthly gross income towards housing including rent payments and utilities.
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Homelessness or living with family or friends.
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Substandard housing conditions which impact the health and/or safety of the household members.
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Insufficient space or room configuration to accommodate the number of occupants in the residence at the time of application or who will be living in the residence in the “near” future.
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You must have an annual household income between 30% to 80% of the AMI (Area Median Income) as determined by HUD.
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Unsafe neighborhoods due to high violent crime rate, high non-violent crime rate (including illegal drug activity), or other commonly accepted measures of unsafe neighborhoods.
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Unsafe neighborhoods due to man-made or geo-climatic conditions such as flooding or earth movement.
Click here to view Habitat’s eligibility details:
Please note that eligibility parameters are subject to change, depending on the housing opportunity, funding requirements etc.
What Should I Expect if I am Approved?
If you are approved to purchase a Habitat home, here is what to be prepared for:
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A 6 -12 month timeline to build, depending on the number of units.
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An affordable housing payment that is limited to 30% of your gross income (including property taxes and insurance).
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Attendance of educational workshops on homeownership and home maintenance.
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The Partnership Requirement:
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This means volunteering on the construction site, in our ReStores or office, and through other organizations.
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Participation in Habitat media and marketing efforts.
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What is the Process for Home Purchase?
1. An email will be sent to everyone who registered for our newsletter and indicated an interest in homeownership. We will also review our Home Purchase Program inquiry list and notify anyone who communicated with our Homebuyer Services Manager
2. We will announce on our social media pages (Facebook, Instagram, and LinkedIn) and the HFHMDC website that the application cycle will open on a specified date. The announcement will include a schedule of informational sessions that all interested parties are strongly encouraged to attend. These sessions will occur before the application cycle begins.
3. The application cycle lasts between 2 and 4 weeks. Applications submitted by the stated deadline are reviewed for completeness and eligibility. During this period, applicants must submit their applications by mail or in person, along with all required documentation, by the deadline.
4. Applications submitted by the deadline are then reviewed for completeness and eligibility. Applicants may receive a request for additional documents from Habitat for any missing or incomplete information and must submit all required documents by the stated deadline.
5. Once applications are complete and eligible, they will be assessed to determine if the applicants can afford the home (i.e., their ability to repay). This means Habitat will review the financial situation of each applicant to determine their financial readiness. The review includes examining the income of the entire household and the individuals applying for the loan, assessing the balance between their debt and income, determining how much of their income will go toward housing, and closely reviewing their credit reports.
6. Applicants who are deemed "financially ready" will have their current home visited to verify if there is a demonstrable housing need (as defined by the eligibility requirements). If a need is confirmed, they will proceed to the next step: a blind review by a selection committee.
In the blind review, the Family Selection Committee will evaluate each application without knowing the identities of the applicants, as all personal information will be concealed.
7. After the committee makes its recommendations, the Habitat Board of Directors will make the final decision. Decision letters will be sent out, and a first meeting will be scheduled with the selected buyers.
Equal Housing Statement
Habitat for Humanity of Montgomery and Delaware Counties is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunities throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, sex, marital status, physical or mental disability, color, religion, national origin, ancestry, presence of children, source of income, sexual orientation, gender identity, age, and family responsibilities.
Ready to be a Habitat Homebuyer?
If you have any questions that are not answered here, please contact our Homebuyer Services Manager at
Programs@HabitatMontDelco.org or call 610-278-7710.