Affordable Homeownership Eligibility Requirements
- Need for affordable housing
- Income level between 40-80% of Area Median Income for Montezuma County
- Credit score of 640 or higher
- Ability to contribute a $2000.00 down payment
- Commitment to contribute 250 sweat equity hours per adult to the construction of home, or other activities to support habitat Montezuma
- Homebuyer Education class completion
- 1 year history of residence in Montezuma County
- US Citizenship or qualified alien status
- Obtain a Certificate of Eligibility for a USDA Rural Development mortgage loan.
Supporting Documents Required
- Complete application
- 1 Consumer Credit Report from www.AnnualCreditReport.com
- 2 Credit scores from one of the 3 bureaus: Experian, Equifax, Trans Union
- Bank statements: Most recent 2 month, all accounts
- Pay stubs: Most recent 4 week for all jobs
- Unearned income: Most recent benefit statements for any unearned income such as SNAP, TANF SSI, disability, child support, alimony, etc.
- W2s or 1099: Most recent two years
- Federal Tax Returns: Most recent two years, all pages
- Friver’s license or other photo ID
- Social Security card (only needed if tax returns do not include page 8879 “e-file signature page.” Which contain the Tax ID number.
Further documentation may be required as Habitat Homes in Montezuma County are financed by USDA Rural Development mortgage loans. To qualify to partner with Habitat, applicants must qualify for this type of mortgage loan.
2025 Income Requirements
| AMI | 1 person | 2 people | 3 people | 4 people | |||||
|---|---|---|---|---|---|---|---|---|---|
| 80% | 57,120 | 65,280 | 73,440 | 81,600 | |||||
| 70% | 49,980 | 57,120 | 64,260 | 71,400 | |||||
| 60% | 42,840 | 48,960 | 55,080 | 61,200 | |||||
| 55% | 39,270 | 44,880 | 50,490 | 56,100 | |||||
| 50% | 35,700 | 40,800 | 45,900 | 51,000 | |||||
| 45% | 32,130 | 36,720 | 41,310 | 45,900 | |||||
| 40% | 28,560 | 32,640 | 36,720 | 40,800 | |||||
| 30% | 21,420 | 24,480 | 27,540 | 30,600 |
Frequently Asked Questions
Do you give away houses?
No, we work with future homeowners to identify affordable housing options and provide financial literacy training as necessary.
How are the income requirements determined?
Habitat Montezuma’s affordable homeownership program is for households earning between 30-80% of the area median income. The area median income is determined by the U.S. Department of Housing and Urban Development and is typically updated annually.
What will Habitat be looking for in my credit report?
We will be trying to determine whether you have the ability to afford a mortgage payment on top of your existing financial responsibilities. Specifically, we will be confirming no foreclosures or bankruptcies in the last three years.
Habitat’s program allows a maximum debt-to-income ratio of 43% and assumes your monthly housing costs to be 30%.
What do you mean by “no homeownership int he past 3 years”?
To qualify for our homeownership program, you must be a first-time homebuyer using HUD’s definition. Generally, a first-time homebuyer is someone who meets any of the following requirements:
An individual who has had no ownership in a residence during the 3-year period ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers). A single parent who has only owned with a former spouse while married. An individual who is a displaced homemaker and has only owned with a spouse. An individual who has only owned a residence not permanently affixed to a permanent foundation in accordance with applicable regulations. An individual who has only owned a property that was not in compliance with state, local, or model building codes and which cannot be brought into compliance for less than the cost of constructing a permanent structure.
What do you mean by “need for housing”?
Habitat’s program is intended to support improvements to a family’s housing situation. Some examples of “need for housing” may include:
- high cost burden for rent
- homelessness
- unsafe or unstable conditions
- inadequate space for size of family
What are sweat equity hours?
Sweat equity is the Habitat for Humanity term for partnering with us to help build your home and further Habitat’s mission. Each future homeowner is asked to complete 250 hours of sweat equity per adult. At least 100 of these hours must be related to construction/work at an active jobsite. Friends and family may volunteer their own time on your behalf for up to 175 of these hours.
