APPLICATION & HOMEOWNERSHIP

PROCESS INFORMATION SESSION

“At Habitat for Humanity Greater San Francisco, our mission is to build homes and sustain affordable homeownership opportunities for families in Marin, San Francisco, and San Mateo counties.

“

”

ABOUT HABITAT GREATER SAN FRANCISCO ▪ An affordable housing nonprofit

organization that is an affiliate of Habitat for Humanity International.

▪ More than 40 years ago, Millard and Linda Fuller founded Habitat for Humanity International. Today, Habitat for Humanity is the global leader in building affordable housing with affiliates in the United States and around the world.

▪ Since 1989, our affiliate has built 248 homes in San Francisco, Marin, and San Mateo Counties.

Applicants are evaluated on the following:

HOMEOWNERSHIP PROGRAM REQUIREMENTS

1. Ability to Pay a Mortgage

• History of regular income and good credit

• Ability to make monthly payments

2. Need for Housing

• 40% to 80% Area Median Income (AMI) = very low to low income households

3. Willingness to Partner with Habitat

• Must fulfill “Sweat Equity” (250 volunteer hours)

• Must comply with affordability restrictions

• Responsible for home maintenance

• Commitment to being a good neighbor

$300K - $333K

HOW DOES HGSF PRICE ITS HOMES?

▪Sales Price:Homes are priced to be affordable to very low to low income households spending no more than 30% of their income on housing expenses in their first year as Habitat homeowners.▪Down Payment:Homebuyers currently do not pay a down payment. ▪Mortgage Interest:Homebuyers do not pay interest on the loan. ▪Closing costs:Homebuyers may pay closing costs at the time of sale.

WE PROVIDE AFFORDABLE HOMES

A monthly housing payment that equals 30% of gross income:

Mortgage. Does not change over time. May include loans.

Property taxes. Subject to change annually.

Insurance. Subject to change annually.

HOA dues. Does not include assessments. Subject to change annually.

Mortgage does not increase over time; taxes, insurance and HOA dues subject to change

annually.

Let’s say your mortgage payment is $800. If you sell back after 10 years, you’d get back:$800 x 120 MONTHS = $96,000 IN EQUITY

AFFORDABILITY RESTRICTIONS▪ Must be sold to Habitat if within restriction period

o The restriction period can be up to 55 years

▪ Habitat pays back your equity when you sello Does not include: property tax, insurance, HOA dues, and special

assessments

▪ Cannot borrow against your home

▪ Inheritance conditionso Must meet our requirements to qualify

▪ Principal residenceo Cannot rent out house or rooms within the homeo Must live there for at least 10 months/year

SAN MATEO COUNTY AMI (2019)

Income

Category

3 person

Household

4 person

Household

5 person

Household

6 person

Household

7 person

Household

Very Low

(50%

AMI)

$72,550 $80,600 $87,050 $93,500 $99,950

Low

Income

(80%

AMI)

$116,250 $129,150 $139,500 $149,850 $160,150

SOURCES OF INCOME

▪ Employment

▪ Self-employment

▪ General & Public Assistance

▪ Social Security, SSI, SSDI

▪ Survivor/Death Benefits

▪ Veterans Benefit

▪ Aid to Families with Dependent Children (AFDC)

▪ Temporary Assistance for Needy Families (TANF)

▪ Disability

▪ Annuities

▪ Retirement and Pensions

▪ Child Support/Alimony

▪ Workers Compensation

▪ Insurance Policies

▪ Unemployment (only if employment is seasonal)

▪ Monetary Support (cannot accept cash gifts)

WHAT IS OUR RESALE PROGRAM?

When a Habitat Greater San Francisco homeowner decides to sell back their home, we have the right to repurchase the home to sell to another qualified homebuyer.

Habitat Homeowner

HHGSF

Qualified Household

sells to

resells to

Unlike newly constructed homes, which require 500 hours of sweat equity, we require only 250 hours for resales.

441 Second Lane, South San Francisco

This Habitat home features:

▪ 3 bedrooms

▪ 1 master bedroom on

▪ 2 bathrooms

▪ Multi-level (3 stories)

▪ 1750 sq. ft

▪ 2 car tandem garage

▪ Small backyard

a separate level

441 Second Lane, South San Francisco

3490 Rolison Road, Redwood City

This Habitat home features:

▪ 3 bedrooms

▪ 1.5 bathrooms

▪ Property has HOA

▪ Multi-level (2 stories)

▪ 1110 sq. ft

▪ 1 assigned parking

space

▪ Community Center

3490 Rolison Road, Redwood City

2470 Gloria Way, East Palo Alto

This Habitat home features:

▪ 2 bedrooms

▪ 1 bathroom

▪ Property has HOA

▪ Multi-level complex

▪ 931 sq. ft

▪ Garage

▪ Townhome

2470 Gloria Way, East Palo Alto

ARE YOU READY FOR HOMEOWNERSHIP?

HOMEOWNERSHIP BENEFITS

& CHALLENGES

BENEFITS:▪Privacy▪Usually a good investment▪More stable housing costs from year to year▪More flexibility▪Pride in ownership and strong community ties▪Equity buildup (savings)▪Build wealth over time

CHALLENGES:▪Long-term commitment▪Maintenance and repair costs▪Lack of flexibility ▪High up-front costs▪Increased costs such as property taxes and homeowners insurance▪Being unable to make mortgage payments, which could lead to foreclosure

MONEY, MONEY,

MONEY

As a homeowner, it will be your responsibility to manage your money more than ever. This includes budgeting and saving for all the costs that come with homeownership.

1Attend Application

Information Meeting

5. Homeowner

Selecting

Committee

home interview

2Submit Your

Application

3Lottery, 1st Income Qualification,

Credit, Background Review 4Interview &

Conditional

Approval by

Habitat Board

5Sweat Equity: Complete 250

volunteer hours with HGSF

62nd Income Qualification,

Credit, Background Review

7Escrow Closing

Process

8 Move into Your

New Home

Get started!Complete the online intake form

www.habitatgsf.org/homeowner

ship-application/

What does the lottery do?

The lottery sets the processing order. Your lottery number indicates

when your application will be reviewed for eligibility. For example,

if your lottery number is 1, your application will be reviewed first.

THE HOMEOWNERSHIP PROCESS

APPLICANT REQUIRMENTSWhat is an Applicant and Co-Applicant?The Applicant is the Titleholder, who is legally responsible for making the monthly housing payment on time.

Requirements that applicants must follow:▪ Be a first-time homebuyer

▪ An individual who has had no ownership in a principal residence for the last 3 years at the time of application. This includes your co-applicant.

▪ Be a legal permanent resident or citizen of the United States▪ Proof of residency is required when

submitting an application.

▪ Pass criminal, sex offender, and money-laundering background screening▪ Both Applicant and Co-Applicant must pass

this screening

APPLICANT REQUIRMENTS (continued…)

▪ Median credit score of 650

▪ History of reliable payments on credit report(s)

▪ Debt-to-Income Ratio below 45%

▪ No judgments on credit report(s)

▪ No outstanding credit collection(s) and/or charge-offs on credit report(s)

(Medical no more than $500 per occurrence or maximum $2000 for total occurrences)

▪ No Chapter 7 or Chapter 13 bankruptcy discharged/dismissed within last 2 years

HOME PURCHASE PROCESS

Application & Lottery

Qualification & Selection

250 Hours of Sweat Equity

Escrow Closing

APPLICATION CHECKLIST DEADLINE: DUE DECEMBER 6TH, 2019 BY 5PM

Please submit your application by:

▪By Mail:Habitat for Humanity Greater San FranciscoAttn: Homeowner Development Department500 Washington Street, Suite 250San Francisco, CA 94111

▪In-Person (by Appointment ONLY):(Mondays to Fridays, from 10am to 4pm)Address: 500 Washington Street, Suite 250San Francisco, CA 94111

APPLICATION CHECKLIST DEADLINE: DUE DECEMBER 6TH, 2019 BY 5PM

▪ Applications must be received by December 6th, 2019 by 5pm.

▪ Applications received after the deadline will not be accepted.

▪ Applications postmarked by deadline will not be accepted.

▪ We strongly encourage you to submit your application by certified mail or in-person by appointment.

▪ Habitat is not responsible for any errors due to mailing/shipment. Errors include, but are not limited to: a lost application, delays, damaged application, incomplete application, etc.

Thanks!Any questions?Reach out to Sam at: SHolman@habitatgsf.org