- The buyer of the house must be a citizen, a permanent resident of the U.S., or of legal immigration status.
- The buyer of the house must have lived or worked in the Cape Fear Region for at least 1 year.
- Our service areas are New Hanover, Pender, and Duplin Counties.
Cape Fear Habitat creates homeownership opportunities that allow families to realize their potential and accomplish their dreams. Habitat homeowners spend no more than 30% of their monthly income on housing, which provides stability, security, and the chance to build wealth and leave a legacy for the next generation.
qualifications
Residency
Need
There must be a demonstrated need for adequate housing, which include one or more of the following:
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- Displaced by a natural disaster, or otherwise impacted
- Housing expenses greater than 30% of income
- Unable to get a home loan from any other source
- Overcrowded or unsafe conditions
- Subsidized Housing
- Substandard housing or nonpermanent residence, homeless
Willingness to Partner
Turning in a Fully Complete Application:
This includes all required supporting documents. Please review the checklist to ensure that you are submitting a complete application.
Partnership Hours:
Help us build other homes and, eventually, your own! Partnership Hours are performed in various ways, but most significantly on the build sites. No construction experience is required! Other opportunities are available at our Restores, fundraisers, and community events. Work alongside volunteers 2-3 volunteer shifts per month, over a period of approximately 18 months.
Prior to closing, a family with 2 adults must work 400 Partnership Hours & a family with 1 adult must work 250 Partnership Hours. (100 of these hours must construction-related per adult). Friends and Family may help with a portion of your hours. Those with disabilities may have a custom Partnership Hours Plan designed, if necessary, with doctor’s input. We’ll find ways for you to be involved as much as possible that’s safe for you.
Homeownership Classes:
Attendance is mandatory for all classes prior to closing.
Monthly Payments Towards Closing Costs Prior to Closing:
By submitting affordable monthly payments towards closing costs while in our program, you will demonstrate your willingness to pay a monthly mortgage on time in the future. Realistic monthly goals will be discussed between the Future Homeowner and the Credit and Mortgage Counselor upon examination of monthly budget.
Monthly Financial Meetings:
By attending regular monthly meetings with the Credit & Mortgage Counselor prior to closing, you will demonstrate a commitment to strengthening your financial readiness for home ownership.
Willingness to Live Where We Have Land:
During the application process, we will discuss known locations that are not yet selected by future homeowners, giving you a sense of where we typically build. After your application is approved and you have demonstrated consistency in your partnership activities for a few months, you will be shown available land options. At that time, you will select a construction-ready property from our land inventory that meets your eligibility criteria, such as approved number of bedrooms, affordability, and loan type.
Representing Habitat:
Our partner families support the community as a representative of Habitat. You will also be asked to meet and talk with volunteers, donors, and other future homeowners.
Homeownership Responsibilities:
Habitat homeowners hold the same responsibilities as most any homeowner. You are expected to pay your mortgage on time, and you will be responsible for keeping your home maintained and repaired as needed. Monthly mortgage payments include principal payment, homeowner’s insurance premiums, property taxes, and other applicable items such as HOA dues, termite agreement, etc.
Mortgage Payments After Home Purchase:
Your monthly mortgage payment will be set to no more than 30% of your gross monthly income at closing. Your payments will go back into our Revolving Fund to build more homes in partnership with more families!
Required Background Checks:
A sexual offender, criminal background check, and a global terrorist background check will be conducted on all adults in the household 18 years and older, as well as the spouse of the applicant, if applicable.
Ability to Pay
INCOME:
See income ranges in the chart below. Income amounts including wages, Social Security, Social Security disability, child support (optional), other forms of reported income, and all debt will be considered. These numbers are effective April 26th, 2024, and change every year.
Need to increase your income? Contact our partner StepUp Wilmington who offers join training and placement, as well as career development.
DEBT:
We will look at your debts in relation to your income to make sure you have enough left over to pay a Habitat mortgage without being cost-burdened. This includes credit card payments, car loans, and any other loans or obligations.
CREDIT:
We are not looking for a particular credit score. We pull your credit to view your payment history. If you don’t have a Credit Report, you will be asked to submit utility bills to demonstrate your payment history.
application steps
Step 2: Cape Fear Habitat Reviews Application
Our Credit Counselor will review your application and supporting financial documentation. If you meet the qualifications, you will receive a letter indicating whether or not you may proceed to the next step.
Step 3: Meet with Credit Counselor
Step 4: Background Checks
A sexual offender, criminal background check, and a global terrorist background check will be conducted on all adults in the household 18 years and older, as well as any spouse of the applicant if applicable.
Step 5: Partnership Meeting with Director of Homeowner Services
Meet with the Director of Homeowner Services to discuss your need for a Habitat home, to ensure your understanding of what it means to partner with Habitat, and how you plan to fulfill our partnership requirements.
Step 6: Homeowner Selection Committee Interview
A member of the Homeowner Selection Committee and the Director of Homeowner Services will meet with you for a short interview. Then the committee will meet to review your case, and a determination will be made whether to recommend your family for selection into the homeownership program. The Board of Directors will vote to make the final decision.
Step 7: If Approved by the Board…
Your Habitat Partnership begins! The first step will be to meet with the Programs Coordinator for a Program Orientation and to sign a Letter of Intent. You will begin right away on working on your financial readiness for homeownership, partnership hours, and homeowner education.
questions
Program Questions
Are Cape Fear Habitat houses free?
No. Approved hard-working families purchase their homes from Cape Fear Habitat through an affordable mortgage.
Is there a down payment required?
No down payment is required, although currently closing costs are $3000. Monthly payments in an amount determined by you and the Consumer Credit Counselor towards closing costs and/or debt will demonstrate your willingness to enter into a loan agreement with Habitat.
How much is the Cape Fear Habitat monthly mortgage payment?
The monthly mortgage payment varies depending on the cost of each individual home and will not exceed 30% of the borrower’s (and co-borrower’s) gross monthly income.
What is included in a homeowner’s monthly mortgage payments?
- Principal payment (pays down the amount owed on the home loan)
- Homeowners Insurance Premiums
- Property Taxes
- HOA dues, if any, etc…
Do the houses include appliances?
Yes. All Cape Fear Habitat for Humanity houses include an appliance package that contains a new stove, hood, refrigerator, and washer/dryer.
How do homeowners complete their sweat equity hours?
Approved families will partner with Cape Fear Habitat in the construction of other homes as well as their own homes. No construction experience is necessary or expected prior to entering the program. Homeowners can also complete a portion of sweat equity hours by working in one of Cape Fear Habitat’s Restores, by participating in outreach events, or by assisting in the Administrative Office. Mandatory attendance at Homeownership Classes counts for a portion of Sweat Equity, as well.
How many sweat equity hours are required?
Minimum total hours:
- 2 Adult Family = 400 hours*
- 1 Adult Family = 250 hours*
* Some of these hours can be donated by friends and family
Each adult is required to maintain an at least an average of 16 hours of completed Sweat Equity each month.
Qualification Questions
What if I have bad credit or a bankruptcy?
We do not look solely at credit score. As long as your financial history shows consistency in paying bills on time or you can pay past due non-medical debts, the application will be considered. Prior Bankruptcies and/or Judgements are reviewed, however they will not automatically keep your application from being approved. We can work with you to help you identify ways to improve your credit so that your application can be considered.
Can I apply if there are no children in my household?
Yes. Cape Fear Habitat does not require homebuyers to have children in order to qualify.
Do homebuyers need to be members of a church?
No, we do not accept or decline applications based on church membership or religious affiliation.
What if I have something on my criminal record?
We will conduct a standardized criminal background assessment on each household member aged 18 or older, as well as a spouse of the applicant if applicable, to determine if the criminal background will disqualify the application.
Application Process Questions
How long is the waiting list for prospective homebuyers?
Currently, we do not have a waiting list for homeownership. The length of the application and build process will vary depending on each applicant’s financial readiness as well as the availability of properties. Also, required sweat equity hours must be complete before closing.
How long is the application process? When will I move into my home?
The application process usually takes between 1 to 2 months. Once the application is approved, the process from beginning sweat equity to occupancy usually takes between a year to a year and a half, depending on each applicant’s individual circumstances and the availability of properties, or it may be longer depending on other factors. This information will be reviewed with each approved Partner Family individually.
I know someone who I think will qualify for a home. What can I do?
Please direct your friends to this website or encourage them to call our office at 910-762-4744, ext. 114 to request an application be mailed to them.
What happens if my application is denied?
If applicants do not meet Cape Fear Habitat for Humanity’s criteria and are not accepted into the program, they will receive a letter with the reason and a referral to other resources, if appropriate.
We highly encourage those who are denied due to having too much debt or not enough income to request a face-to-face meeting with our Credit and Mortgage Counselor for personalized guidance on the specific steps that can be taken to eventually qualify. There is no limit to how many times an individual can apply for a Habitat home, so we encourage applicants to reapply when situations change.
