Home Ownership
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THE HOMEOWNERSHIP PROCESS The following is an outline of the step-by-step process of becoming a Wilson Area Habitat Homeowner. Please note that prospective co-applicants must complete all of these steps along with the prospective applicant. (1) INITIAL CONSULTATION. In this meeting, the Wilson Area Habitat requirements, guidelines, and the family selection process will be reviewed for clarity and emphasis purposes.
(2) THE PRE-QUALIFYING PROCESS. A pre-qualifying information packet is provided to all who request it after the initial consultation. In order to move forward to step (3), the individual/family must complete the following: (a) You must be able to prove that you have been a resident or an employee in Wilson for at least 1 year. (b) Obtain a current credit report for both the prospective applicant and co-applicant. You must have this report with you when you attend the Budgeting Workshop. (c) Make an appointment for and attend a Budgeting Workshop. (d) Complete 10 hours of volunteer work to the Wilson Area Habitat. Please note: 1. Completion of any sweat equity time is not an indication that an individual will be eligible for a Habitat home. 2. Volunteer time at any stage of this process is not compensated even if the pre-qualifying information or the application is denied. (e) After you have completed the workshop and your volunteer time, you will need to fill in the needed information on the 2 forms included in the pre-qualifying packet. (f) You will then mail all of the completed paperwork and information to the Wilson Area Habitat office.
(3) THE APPLICATION PROCESS. The application must be completed in its entirety. All documents and/or copies that are requested on the Application Instruction Sheet must be returned to the Habitat office with the completed application before the evaluation process begins.
(4) THE VERIFICATION/EVALUATION PROCESS. Once your completed application has been received, the verification of the information you have provided begins. Families that are not city/county residents or workers, or can not demonstrate a real need for a Habitat home, or do not have the financial ability to repay the loan, or are not willing to partner with the Wilson Area Habitat will automatically be disqualified at this point. During this verification time, members of the Family Selection & Support Committee will set up an appointment for a home site visit. After verification and the home site visit, an evaluation of all the gathered information will be completed by the Family Selection & Support Committee and a recommendation will be made to the Board of Directors.
(5) BOARD ACCEPTANCE OR DENIAL. Based on the evaluation and recommendations of the Family Selection & Support Committee, the Board of Directors will either accept or deny the application. Applicants who are denied may re-apply after 90 days and are required to complete the entire process again. Applicants that are accepted will then begin the pre-closing process.
(6) PRE-CLOSING PROCESS. This part of the entire process usually takes the longest to complete. During this time, a Letter of Acceptance and a Letter of Intent are prepared and signed by the prospective homeowners and a Habitat representative. Both partners must also sign the Habitat/Homeowner Site Selection Agreement. Arrangements must be made to receive the down payment* and to complete the sweat equity requirements**. The Homeowner Detail Preference sheet must be completed to select paint, siding, vinyl, and carpet colors as well as other physical details. A Family Selection & Support Committee member will oversee this pre-closing process and will be your contact representative for Habitat.
*Down Payment Policy: The down payment is used to pay for the first year of homeowner’s insurance, city/county property taxes, and closing fees or expenses. Half ($500.00) of the $1,000.00 down payment is due 30 days before the set closing date. The remaining half ($500.00) is due at the time of closing. Optional payment plans are available if needed.
**Sweat Equity Policy: The amount of time that you volunteer to Habitat is
called sweat equity. Each approved applicant and family must be willing to
partner with Habitat under the following sweat equity policy.
Special Note: Of the total 400 hours, 200 hours must be completed by the immediate family and the remaining 200 hours can be completed by other family and friends.
(7) POST-CLOSING PROCESS. Once the closing process is complete, you will receive a mortgage coupon book at least fifteen (15) days prior to your first mortgage payment. All payments are due by the established due date of each month and are considered late after 10 days. Late payments assess a 5% or minimum $5.00 charge, whichever is larger. Requests for a Waiver of Late Charges must be made by the 10th day of the following month. Waivers will be approved or disapproved by the Board of Directors at the monthly meeting. Lastly, the homeowner must complete the sweat equity requirements within one (1) year of the anniversary date of their closing. Otherwise, the homeowner is required to begin making second mortgage payments in accordance with the signed mortgage documents. The first mortgage represents the selling price of the home and the second mortgage represents the difference between the value of the home and the selling price. Under normal circumstances, the second mortgage is forgiven over a period of time as long as the homeowner has fully satisfied the sweat equity requirements.
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