Homeownership Program
Habitat for Humanity is an equal housing lender, and does not discriminate based on race, creed, color, religion, national origin, sex, marital status, family status, age, or disability.
The first step to homeownership is to complete an application. After you submit your application, the Family Selection committee will review the application and if you meet the criteria we will schedule a home visit with you.
We serve families that fall into the 30-60% median income for Spencer County. A family with one adult must perform 200 hours of sweat equity, and a family with two adults is required to perform 400 hours of sweat equity. You will also be required to attend a budgeting class and a life skills class.
2026 Income Guidelines
If you have more than 10 people in your household, you will need to speak with a Habitat staff member about qualifying.
| # Of People in Family | Low Income | High Income |
|---|---|---|
| One | $22,800 | $52,100 |
| Two | $26,050 | $59,550 |
| Three | $29,300 | $67,000 |
| Four | $32,550 | $74,400 |
| Five | $35,150 | $80,400 |
| Six | $37,750 | $86,350 |
| Seven | $40,350 | $92,300 |
| Eight | $42,950 | $98,250 |
| Nine | $45,550 | $104,200 |
| Ten | $48,150 | $110,150 |
Requirements for Habitat for Humanity Homeownership
Habitat for Humanity provides a unique opportunity for families and individuals to build and buy their own homes. To qualify, applicants must meet specific criteria designed to ensure they are ready for the responsibilities of homeownership.
Demonstration of Need
The first requirement is showing that your current housing situation is inadequate. This may include:
- Substandard Conditions: Living in a home with structural issues, failing systems (heating, plumbing), or safety concerns.
- Overcrowded Housing: Living in a space that is too small for the number of people in the household.
- Cost Burden: Currently paying more than 30% to 50% of your total income toward rent.
- Inaccessibility: Living in a home that does not accommodate the physical needs of a family member with a disability.
Ability to Pay
Because Habitat is a homeownership program and not a giveaway, applicants must demonstrate the financial stability to pay an affordable monthly mortgage.
- Stable Income: Providing proof of steady income (usually through W-2s or tax returns) for at least two years.
- Income Limits: Total household income must typically fall between 30% and 60% of the Area Median Income (AMI) for your specific county.
- Manageable Debt: A reasonable debt-to-income ratio that shows you can take on a mortgage payment while meeting other financial obligations.
Willingness to Partner (Sweat Equity)
Partnership is at the heart of the Habitat mission. Applicants must be willing to invest their own time into the program.
- Volunteer Hours: Homeowners generally commit to 200–400 hours of “sweat equity.”
- Work Types: This includes physical labor on their own home or others’ homes, working at Habitat fundraisers, or attending required financial literacy and home maintenance classes.
- Community Ambassadorship: A willingness to represent Habitat for Humanity positively within the community.
Inclusion and Residency
Habitat is committed to building community through diverse and inclusive homeownership.
- Equal Housing Opportunity: All qualified applicants—including single people and families of all backgrounds—receive equal consideration.
- Residency Requirements: Applicants must typically live or work in the specific county (such as Spencer County) where they are applying for a home.
- Legal Residency: Proof of legal residency or citizenship is generally required by local affiliates.
Visit our blog to learn more about common misconceptions about Habitat for Humanity.
