Application Orientation Lancaster County March 2010

1. Application OrientationLancaster CountyMarch 2010

2. What is Habitat for Humanity? Habitat for Humanity is a non-denominational Christian housing ministry dedicated to selling affordable houses to qualified applicant families. Photo by Kim MacDonald

3. You can buy a house! Habitat for Humanity provides: • An affordable house – Habitat for Humanity makes no profit. • An affordable mortgage - Habitat for Humanity charges 0% interest. • Solid, reliable program – building homes in Lancaster County since 1986.

4. Owning a home means… Joys • More success in school for kids, personal space and decorating choices! Responsibilities • Paying the mortgage on time, mowing the lawn, shoveling snow, changing light bulbs and the batteries in fire alarms, more bills to pay!

5. How does Habitat for Humanity select families? • Application Process includes: • Submit completed application and paperwork • Credit check • Home visit • Violent offender registry check

6. Ability to pay • Must have sustainable income • Debt must not be excessive • No liens or judgments • No back Child Support payments • Consistent payment history with rent • Ability to make applicable down payment and closing costs • 3 years since Bankruptcies/Foreclosures

7. Ability to payAmount of your debt How much money do you owe? • School loans • Car loans • Bank credit cards • Store credit cards or accounts • Utility bills • Medical bills

8. Ability to payResidency Requirements • Must live in Lancaster County for 1 year before applying • If employed, working with same company for at least 6 months • Must be a Permanent Resident or US Citizen • Entire household must live in this County

9. Ability to payIncome Eligibility Maximum Income per household 1 person $37,800 2 people $43,100 3 people $48,600 4 people $53,900 5 people $58,200 6 people $62,500

10. Current Projects South West Lancaster City 19 homes on Fairview Ave.

11. Current Project Income Guidelines Fairview Build • Taxes and Homeowner Ins. - $410 per month • Principal payment – $400 per month • Homeowner’s Association – $70 per month Minimum income is $33,000 for this project.

12. Current ProjectIncome Guidelines Ephrata Build • Duplex in larger mixed income neighborhood • Taxes and Homeowner Ins. - $300 per month • Principal payment – $400 per month • Homeowner’s Association – $20 per month Minimum income is $27,000 for this project.

13. Need for Housing criteria: • Overcrowded living conditions. • Substandard living conditions. • Paying more than 30% of monthly gross income for housing expenses. • Denied a traditional mortgage. • Currently living in public housing, or Sec 8.

14. Willingness to partner criteria • Returns application complete and on time • Returns phone calls promptly • Agrees to complete 500 hours of sweat equity • Agrees to save toward 1% down payment • Agrees to attend homeowner workshops • Creates safe environments for neighbors.

15. Partnership is a key part of Habitat for Humanity • Many individuals, groups, churches, companies and local organizations support and participate in Habitat for Humanity. • Homeowners are participants. • EVERYONE is considered a partner. Thousands of students partner with Habitat through Collegiate Challenge, an alternative Spring break program. Photo by Kim MacDonald

16. Homeowners’ sweat equity • Our affiliate requires families to complete 500 sweat-equity hours: • Construction • Workshops • Office mailings • Interviews • Minimum of 16 hours a month • Family members or friends can help with this requirement. Photos by Trevor Kobrin, Kim MacDonald and Neal Gallagher

17. Required workshops for homeowners • Match Savings Account with Tabor CS (budgeting and financial planning) • Home Maintenance • Zoning and Permits • Being a Good Neighbor • Understanding Your Settlement Paperwork

18. Steps of partnership for the homeowner • Complete the Application process (60-90 days). • Acceptance by Board of Directors. • Orientation for program. • Sweat equity hours are completed (6 mos – 2 yrs). • Home is built with your partnership. • Move In and Settlement on home. Average time frame – 1 to 2 years

19. Typical financial obligations to buy a Habitat for Humanity house Before home purchase: • Approximately 1% of sales price ~$1,500 After home purchase: • Monthly mortgage payments, includes principal, taxes, and insurance: • Principal amount for 20-30 years (~$400) • Taxes and insurance vary each year • Payments: ~ $700-1,000

20. House selling price Estimated costs for a home sold for $140,000: Over 20 years, this equals a monthly principal payment of $584 + taxes and insurance. Over 30 years, this equals a monthly principal payment of $389 + taxes and insurance

21. Please know that… • Some families apply 2 or 3 times before they become eligible. • We WANT to work with you. If you are not accepted the first time, please return to our office at a later date and apply again!

22. Any Questions? Do you understand the requirements and criteria for homeownership? Do you understand what Habitat for Humanity will offer?

23. How to apply Return application by April 30, 2010 Applications are available here or in our office at 443 Fairview Ave., Lancaster Contact: Deborah 717-392-8836 x 208

24. Wait to hear from us… Make sure we can reach you by telephone! If your contact information changes, please let us know.

25. Lancaster Area Habitat for Humanity Thank you for your time! 443 Fairview Ave. Lancaster, PA 17603 www.lancasterhabitat.org 717-392-8836 x 208