Homeownership Program

Making the dream of homeownership a reality in Lake and McHenry Counties.

Thank you for your interest in Lake-McHenry Habitat’s Homeownership Program! We believe that everyone deserves a safe, affordable place to call home—our homeownership program helps make this a reality for more people in our community.

Questions?

Scroll down to the FAQ section to get answers to some of the most common questions about enrolling in our homeownership program. If you still have questions, reach out to us at [email protected].

When applications are open, your completed application will be evaluated based on three main areas:

Need for Housing

Households must demonstrate a need for safe, stable, and affordable housing. This need maybe based on one or more of the following conditions:

• Gross household income below 80% of the Area Median Income (AMI) for Lake-McHenry County.
• Cost-burdened housing; paying more than 30% of gross monthly income on rent.
• Overcrowded living conditions; size is inadequate for the present or anticipated residents.
• Unsafe, unsanitary living conditions or located in a particularly unsafe area.

Willingness to Partner

To help ensure a successful homeownership journey, we ask applicants to actively engage with Habitat through the following actions:

• Submit all requested documentation and information promptly.
• Complete pre-purchase financial education.
• Engage in partnership hours–an opportunity to be hands-on in building your home, gaining valuable knowledge and skills.
• Maintain open, honest, and timely communication with Habitat.

Ability to Pay

To qualify financially for Habitat’s Homeownership Program, applicants must demonstrate the ability to pay an affordable mortgage through the following:

• Stable, consistent source of gross income that falls between 50-80% of the Lake-McHenry County Area Median Income (AMI) for your household size.
  • Income can come from various sources, including employment, government assistance, pensions or other sources if it is verifiable, reliable and expected to continue for three (3)years. For employment income; must demonstrate two years of consistent employment income with at least six months at the same employer.
• Satisfactory credit history with a credit score of 640 or higher.
• Able to save a minimum of $3,000 to contribute toward closing costs.
• No outstanding liens or judgments.
• At least two years since bankruptcy discharge, with a demonstrated positive payment history.
• Monthly debt payments must be no more than 11% of your gross monthly income.
  • Debt includes: credit cards, car loans, student loans, child support, alimony, etc.
  • Does NOT include rent or utility payments
• Applicant(s) must be U.S. Citizen or Permanent Resident.

Habitat for Humanity’s Homeownership program is a first-time homebuyer program. Individuals must have no ownership in a principle residence for the past three years.

Applications are currently CLOSED.  Please fill out the Homeownership Interest Form to be updated when they open again!