Ability to Pay: Debt and Credit

Not only is the Ability to Pay determined by income, a Habitat application also requires a look at the applicant’s debt and credit.

Please see below for more information on the debt and credit obligations.

Applicants must meet debt-to-income ratios

Program Applicant’s current debt and income will be evaluated to determine eligibility.

  • A Habitat mortgage payment cannot be more than 30% of your gross monthly income.

  • After purchasing a Habitat home, the total of your monthly debt payments (including the mortgage payment) cannot exceed 43% of your gross monthly income.

How is your income determined?

The required median credit score is 620. This is determined from a tri-merge credit report.

  • Applicants without credit scores: two credit references are required with no more than thirty days delinquent on two or more regular monthly payments.
  • Applicants cannot have any “non-medical” charge offs/collections on any credit report.
  • Applicants cannot have any bankruptcies or foreclosures in the past year and must be in good standing.

To purchase a home with Habitat for Humanity you must meet the debt-to-income requirements and have a minimum credit score of 620. Do you wish to continue?