Habitat for Humanity of Lafayette Homeownership Program

Habitat for Humanity of Lafayette Homeownership Program is a first mortgage for homebuyers in Lafayette, Indiana, administered by Habitat for Humanity of Lafayette. Habitat for Humanity of Lafayette builds and rehabilitates homes for qualifying low- to moderate-income families across seven Indiana counties (Tippecanoe, Benton, Carroll, Clinton, Fountain, Warren, White). Qualified homebuyers complete sweat equity hours and financial education, then purchase their homes with an affordable, zero-interest Habitat-financed mortgage. Affordable zero-interest mortgage financed by Habitat; new construction or rehabilitated home sold at no profit; financial and homeownership education; ~1,100 sq ft home with Energy Star appliances. Funding comes from Habitat revolving mortgage fund; federal and private grants; donations.

Habitat for Humanity of Lafayette Homeownership Program is a first mortgage and is repaid under the terms set by Habitat for Humanity of Lafayette. Repayment is triggered by Habitat retains first right of refusal to repurchase if sold before mortgage paid off. The assistance is recorded in 1st position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Habitat for Humanity of Lafayette Homeownership Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Exceptions for displaced homemakers, single parents who owned only with a former spouse, and owners of non-code-compliant property. A homebuyer education course is required, through Habitat for Humanity of Lafayette in-house financial and homeownership workshops (required, count toward sweat equity). Residency requirement: Must have lived or worked in one of the seven service counties for at least 1 year. Citizenship or immigration status: US citizens and lawful permanent residents only. 20 sweat equity hours per month per adult (18+) including construction and education workshops. No bankruptcy within last 3 years. No eviction or foreclosure within last 3 years. Non-permanent residents not eligible. Cannot have owned a home in last 3 years. Total debt cannot exceed 40% of gross monthly income. No unpaid collections over $1,000 (medical excluded). Mortgage payment not to exceed 30% of monthly gross income. Loan term 15 years preferred, may extend to 20/25/30 for affordability.

Habitat for Humanity of Lafayette Homeownership Program limits household income to 80% of the area median income, which varies by county and household size. 40%-80% AMI for Tippecanoe County. 1-person $27,930-$55,800; 4-person $39,870-$79,700; 8-person $52,670-$105,250. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Habitat for Humanity of Lafayette Homeownership Program can be used for single_family. New construction is eligible. Manufactured homes are not eligible.

Habitat for Humanity of Lafayette Homeownership Program serves homebuyers purchasing in Lafayette, Indiana.

Applications for Habitat for Humanity of Lafayette Homeownership Program go through Habitat for Humanity of Lafayette, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.