Homeowner Qualifications

About Habitat for Humanity of Greater Memphis

Habitat for Humanity of Greater Memphis is a nonprofit ecumenical Christian housing ministry dedicated to eliminating substandard housing in the city of Memphis and its surrounding areas. Habitat is committed to making decent housing a matter of conscience and action and building strong communities. The organization works to build simple, decent and affordable homes in partnership with low-income families, who are in need of adequate shelter. The homes are then sold to Habitat’s partner families, at no profit and with no interest charged. Families invest hundreds of hours of their own labor – sweat equity – into building their homes and the homes of others. Their mortgage payments go into the revolving Fund for Humanity, which is used to build more homes. Since its founding in 1983, Habitat has built more than 320 homes in Shelby and Fayette counties. Habitat for Humanity does not provide free housing. It is not a federal government program or a transitional housing provider.

Who qualifies for Habitat?

To qualify, applicants must:

• Be a first-time home buyer
• Live or work in Shelby County
• Reside in substandard housing and have an actual need
• Be unable to qualify for a conventional loan due to income level
• Have stable, verifiable income that is sufficient to support a monthly mortgage payment, in addition to other expenses
• Have fair or passable credit
• Be willing to partner with Habitat for Humanity
• Be able to pay a $1,000 down payment
• Meet the income guidelines listed below

Habitat for Humanity Income Guidelines:

Family Size	Gross Yearly Income
1-2	$12,050-$36,650
3-4	$15,450-$45,850
5-6	$18,550-$53,150
7-8	$21,300-$60,500

What must you do?

Prospective homeowner families must commit to:

• Performing 350 hours of “sweat equity” by working on their houses, other Habitat houses, and at other area non-profits. Eighty percent of the hours must be completed before construction begins on the family’s house.
• Making a two percent down payment – at least $1,000.
• Completing the 15-part “Financial Peace” course.
• Paying off any judgments or participate in a Habitat approved payment plan prior to the start of construction.
• Meeting quarterly for one year after move-in with Habitat’s Family Services staff to discuss their progress in adjusting to homeownership.
• Maintaining or decreasing their “debt to income” ratio while in the Habitat program.

Want to learn more?

• Attend a homeowner application orientation. Sessions are held at noon and 6 p.m. on the first Monday of each month at the Habitat office, located at 169 Scott Street, Memphis, TN 38112.  You must attend one of these sessions in order to receive an application and be considered for acceptance into the program.
• For more information, contact the Habitat Family Services Department at 901.761.4771