Do I Qualify?
The qualifying factors below are meant to give you a general idea of your eligibility for the owner-builder program. However, since everyone’s situation is different, we highly recommend discussing these with an NNHC housing counselor to accurately determine eligibility. Even if you don’t qualify today, your counselor can help get you there.
1 – Income Limits
This program is currently offered to low and very-low income borrowers. Click here to see if your income is below the income limit for your household size.
2 – Housing Ratio
Your income must be sufficient to support the mortgage payment. Your housing ratio must be under 33%, meaning that your mortgage payment cannot be more than 33% of your monthly income. Your NNHC housing counselor will help you determine your ratio.
3 – Debt-to-Income Ratio
Your debt-to-income ratio must be under 41% of your income. This includes your estimated mortgage payment and is calculated at your appointment with your NNHC housing counselor. You will need to know your minimum monthly debt payment.
4 – Credit Score
In most cases, you will need a credit score of 640 or above.
5 – Payment Shock
Payment shock is the difference between your current housing payment and your estimated monthly mortgage payment. If you are not currently paying for housing, or your housing payment is low (ie. living with family), you will most likely have payment shock. Establishing a habit of saving will help reduce the payment shock.
6 – Stable and Reliable Income
Stable and reliable income is determined by the likelihood that your current income will continue. Depending on your type of employment, a two year history may be needed to determine this.