Buyers must demonstrate a need
grants to corporate donations to volunteer labor, Reed said. Eligible home buyers must demonstrate a need for improved housing, be willing to contribute 250 hours of “sweat equity” apiece and be able to pay a mortgage totaling no more than 30 percent of their gross household income.
Family income must range between 50 percent and 80 percent of the area median income, or $92,400 for a family of four.
Habitat carries zero-interest mortgages for all the homes it sells, and when homeowners pay back the loans, the funds are used to pay for new housing projects.
Homeownership allows families to stabilize their finances and build wealth, enhancing their lives and the communities where they live. In San Diego, surging home prices have made it difficult for newcomers to break into the market, Reed said.
“We don’t want homeownership to become the isolated privilege of folks at the highest income brackets,” Reed said.
Jessica and Zachary Smith, both 38, knew from the time they were married
six years ago that owning a home was a major goal. They saved for a down payment, paid off debt and maintained a good credit score so they would be ready when the time came. But they watched with dismay as home prices climbed, pushing their dream further away.
The couple both have good jobs, Zachary as a project manager with a charter school company and she as a recreational leader with the city of San Marcos. So, when they learned about the Habitat project from a local news report, they decided to apply despite the daunting amount of paperwork required.
“This organization brought some light of hope for a home,” Jessica said.
It took several months for the application process to play out, but the couple recently learned their application had been approved by the Habitat board, the final step.
The timing is fortuitous, as the couple, who have a 4year-old son and are expecting a second child, needed more room and they were facing a hefty rent hike on their San Marcos apartment.
“If it wasn’t for this program, it would take a lot more time” for the couple to buy a home, said Zachary.
“Putting down roots in an awesome community where we can grow our family is so important for us. And being able to leave a financial legacy for our children,” Jessica said.