About the Habitat Homeownership Program

Habitat for Humanity’s Homeownership Program partners with individuals and families in need of safe, affordable housing to help them build and purchase a home. It is not a giveaway or a free house, as homeowners make monthly payments on a zero-interest mortgage and contribute “sweat equity” toward building their home and others. Applicants must meet specific selection criteria related to need, ability to pay, and willingness to partner, and not all who apply will be selected. Meeting the criteria does not guarantee acceptance, as Habitat carefully reviews each applicant to ensure the best fit for available opportunities.

Program Eligibility & Selection Criteria

At Habitat for Humanity, families are selected for the homeownership program based on three core criteria:

1. Need for Housing
Applicants must demonstrate a genuine need for safe, stable, and affordable housing. Common examples of qualifying need include:

• Unsafe or unhealthy living conditions (e.g., poor plumbing, heating, or structural issues)
• Overcrowding
• Unaffordable rent compared to income
• Temporary, transitional, or subsidized housing

2. Ability to Pay
Habitat homes are not free. Homebuyers must show the ability to afford a modest mortgage and demonstrate financial responsibility. This includes:

• A stable income within HUD guidelines (updated annually)
• A reasonable debt load
• A willingness to undergo a credit check
• The ability to save for a 1% down payment and closing costs

3. Willingness to Partner
Habitat is a partnership program. Selected families must actively participate by:

• Completing at least 250 hours of sweat equity per adult (age 18+)
  (This includes volunteering on build sites, in the office or ReStore, or other approved tasks.)
• Attending all required homeowner education workshops
• Staying in contact with Habitat staff throughout the process

HUD Year 2025 Maximum Income Guidelines

(To be eligible, your household income MUST fall within the ranges below.)

Please contact our Family Services Department at (309) 676-6729 x 3 or alyssa@habitatpeoria.org for questions.