Homeownership Program
Build a Stronger Future Through Affordable Homeownership
Greater Albuquerque Habitat for Humanity (GAHH) helps local families achieve the stability and security of owning a home. Through our Homeownership Program, qualified first-time homebuyers have the opportunity to purchase an affordable, entry-level home while becoming active partners in the Habitat mission.
Habitat homebuyers aren't given homes. They work alongside volunteers, complete homebuyer education, contribute sweat equity and purchase their homes with an affordable mortgage.
If you're ready to take the next step toward homeownership, review the information below to learn how the program works, who qualifies and what to expect during the application process.
Additional Homeownership Requirements
Greater Albuquerque Habitat for Humanity builds affordable entry-level homes for first-time homebuyers.
Applicants must have been living or working in Bernalillo County and/or Southern Sandoval County for the previous 12 months.
Every household member over the age of 18 must consent to a background check and sex-offender registry check.
All applicants and co-applicants must also consent to a credit check.
Meeting the basic qualifications does not guarantee acceptance into the program. Applications are reviewed as part of Habitat's homeowner selection process.
How the Habitat Homeownership Program Works
Greater Albuquerque Habitat for Humanity partners with individuals and families who need safe, stable and affordable housing and are ready to take on the responsibilities of homeownership.
Applicants are evaluated based on three primary areas:
A Need for Adequate Housing
Applicants must demonstrate a need for improved housing. This may include:
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- Living in housing that does not provide decent or safe living conditions based on Habitat's housing evaluation criteria.
- Living in overcrowded conditions.
- Paying excessive housing costs. Generally, a household should not have to spend more than 30% of its income on housing, excluding utilities.
An Ability to Pay
Habitat homeowners purchase their homes and are responsible for making regular mortgage payments.
Applicants must demonstrate the financial ability to take on an affordable mortgage and the ongoing expenses associated with owning a home.
General financial qualifications include:
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- Gross annual household income that does not exceed 80% of the Bernalillo County Area Median Income (AMI), with limits varying according to household size.
- A two-year history of stable income.
- Monthly long-term debt payments that generally do not exceed approximately 15% of household income.
- An acceptable credit history.
- Collections and judgments must be paid in full.
- Approximately $2,500 in savings for expenses such as the down payment, first-year homeowners insurance and applicable closing costs.
- All household members must be U.S. citizens or permanent residents.
A Willingness to Partner With Habitat
Habitat homeownership is a partnership.
Selected homebuyers must be willing to:
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- Complete 350 hours of Sweat Equity.
- Participate in the construction of their home and homes for other Habitat families.
- Complete required homebuyer education classes.
- Live in the neighborhood where Habitat is currently building.
- Follow applicable city and subdivision regulations.
- Participate in a Homeowners Association when applicable.
No previous construction experience is necessary to complete Sweat Equity. Habitat staff and volunteers will help guide homeowners throughout the process.
What Is Sweat Equity?
Sweat Equity is one of the most important parts of becoming a Habitat homeowner.
Selected families contribute 350 hours of Sweat Equity by participating in activities such as helping construct their own home, assisting with homes for other Habitat families and completing homebuyer education.
You don't need construction experience to participate.
Sweat Equity gives future homeowners an opportunity to become directly involved in the homebuilding process while learning valuable skills and building relationships with their future neighbors and the Habitat community.
Income Criteria
Greater Albuquerque Habitat for Humanity updates its Homeownership Program income requirements each year. The requirements are based on 50% to 80% of the Area Median Income (AMI) for Bernalillo County.
Eligibility is determined by total household income and household size.
Stable Sources of Income
Stable income may include:
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- Salary or hourly wages
- Self-employment income
- Bonuses
- Investment income
- Child support
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- Temporary Assistance for Needy Families (TANF)
Income must be consistent and expected to continue.
Employment History
Applicants must have a minimum employment history of 24 months.
- Full-time employment: At least 12 months at the current job.
- Part-time employment or self-employment: At least 24 months in the current position.
Income Guidelines by Household Size
| Family Size | Annual Gross Income (Before Taxes) |
| 1 | $35,150 - $56,250 |
| 2 | $40,200 - $64,250 |
| 3 | $45,200 - $72,300 |
| 4 | $50,200 - $80,300 |
| 5 | $54,250 - $86,750 |
| 6 | $58,250 - $93,150 |
| 7 | $62,250 - $99,600 |
| 8 | $66,300 - $106,000 |
Debt-to-Income Ratio
Your debt-to-income ratio, or DTI, compares your monthly debt payments with your monthly gross income. GAHH would like your DTI ratio to be around 13%–15%.
How to Calculate Your DTI
Divide your total monthly debt payments by your total monthly gross income.
For example, if your monthly gross income is $2,000 and you pay $400 each month toward loans, credit cards, medical bills and/or student loans, your debt-to-income ratio would be:
$400 ÷ $2,000 = 0.20, or 20%
What to Include as Debt
Include all monthly obligations for both the applicant and co-applicant, including:
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- Credit card payments
- Student loan payments
- Vehicle loan payments
- Medical debt payments
- Other loan payments
- Court-ordered obligations
- Child support and/or alimony payments
Do not include rent, utilities, groceries or other miscellaneous living expenses.
Deferred Student Loans
If your student loans are deferred, GAHH will estimate a monthly payment equal to 0.5% of the total deferred loan balance.
For example, if you owe $40,000 in deferred student loans, $200 will be counted toward your monthly debt:
$40,000 × 0.5% = $200 per month
Homeownership FAQ's
I'm interested in the Habitat Homeownership program, what should I do next?
Please visit our website to review the program requirements. If you meet all the criteria, complete the inquiry form. Once you have filled out the inquiry form, an application will be sent to you. More information will be provided in the application packet.
When the application cycle opens, you will be notified by email. At that time, you will need to submit your name and current mailing address through the application request form, and we will mail you an application packet to complete and return for consideration.
Your information states that you have expanded your program income guidelines. What does that mean?
Expanding our program income guidelines means that we are now able to serve a broader range of families. In addition to low-income households, families with moderate incomes may also qualify for the program, if you are a first-time homebuyer. This allows more people the opportunity to achieve safe, affordable homeownership while still ensuring the program remains sustainable and effective.
The upper limit of our homeowner income eligibility has increased from 50% to 80% of the Median Income in the Albuquerque area. Actual income limits vary depending on family size, and detailed qualification information is available on our website.
Where will these new homes be located, and are they currently under construction?
We are in the early planning stages for our next two neighborhoods. Both neighborhoods are currently in the design phase, collaborating with civil engineers, construction leadership, home designers, and the City of Albuquerque. Over the next several years, we expect to build a total of 20 homes in 4 separate neighborhoods.
Do Habitat families own their own home?
Yes, Habitat families do own their homes.
Habitat homeowners are like any other homebuyer. Families selected for a Habitat home must qualify for and be approved for a mortgage, with Greater Albuquerque Habitat for Humanity serving as the lender.
Homeowners are responsible for making their monthly mortgage payments on time, just like traditional homeowners. These payments are designed to be affordable.
Over time, homeowners build equity in their home, creating financial value and a foundation for the future. In addition, homeownership provides long-term stability, security, and a sense of pride that comes with having a place to call their own.
Why are your homes affordable?
Greater Albuquerque Habitat for Humanity homes are affordable because they are built with the help of volunteer labor and on land that is donated or offered at a reduced cost. In addition, homes are financed with an interest-free mortgage.
Homebuyers, also known as partner families, contribute “sweat equity” by completing 350 or more hours of labor toward building their home and supporting the program.
How long does it take to build a home?
The Habitat for Humanity homeownership process typically takes about 12 to 18 months from the time of application to move-in day. This timeline includes several important steps, such as application review and approval, homebuyer education, completion of required “sweat equity” hours, and the construction of the home.
Each phase is designed to prepare families for successful homeownership while ensuring the home is built to quality standards. Timelines may vary depending on factors such as construction schedules, weather conditions, and program requirements.
What are the requirements and benefits for Habitat homeowners once their home has been completed and they have moved in?
Habitat homeowners are just like any other homebuyer. They have a mortgage that requires a monthly payment due regularly. They pay property taxes and home insurance. They show pride in ownership by keeping their property well-maintained. They have neighbors who helped each other build their homes and a neighborhood bond to enjoy. They also know that every mortgage payment goes towards accumulating equity in their residence, while owning their home provides security and comfort for themselves and their family.
How does the Habitat Homeownership program work?
Our Habitat homeownership program partners with families to help build their homes, and in return, they receive an affordable mortgage. These loans are made more affordable because they are interest-free.
Selected families must complete homeowner education classes and contribute sweat equity by helping build their own home as well as the homes of others. The selection process is fair, transparent, and open to all who meet the program qualifications.
How to Apply
Before joining the notification list, please review the program qualifications, income criteria and applicant FAQs above.
Our application cycle is currently paused, but we are preparing to reopen applications soon. If you are interested in applying, please join our notification list, and we will contact you when the next application cycle opens.
Once the application cycle opens, you will be contacted by email. The email will ask whether you are still interested in moving forward. If you are, you will be directed to submit your name and current mailing address using the Application Request Form.
Please allow six to eight weeks to receive your application packet by USPS.
What Happens After You're Selected?
Becoming a Habitat homeowner is a process rather than a traditional home purchase.
After qualification and selection, future homeowners work with Greater Albuquerque Habitat for Humanity to complete the steps required before purchasing and moving into their home.
The process typically includes:
- Application review and approval
- Homebuyer education
- Completion of required Sweat Equity hours
- Home construction
- Mortgage qualification and closing
- Move-in and homeownership
The overall process typically takes approximately 12 to 18 months from application to move-in, although individual timelines may vary because of construction schedules, weather, program requirements and other factors.
Questions?
If you have additional questions and would like to speak to the Family Service Manager, please call Dawn at (505) 359-2435 or email [email protected]