Saratoga Community Housing
 
Application Process for Potential Homeownership

Following are the basic steps involved in the Saratoga Community Housing (SCH) homebuyer application process. Please read and review these steps before determining if this type of homeownership opportunity is suited to your needs.  These guidelines are subject to change and may be updated from time to time to keep in compliance with the SCH homeownership program.  Eligibility will ultimately be determined by the SCH staff and subject to SCH Board approval.

• Attend a Saratoga Community Housing “Homeownership Orientation” 

 The SCH staff will review our mission and explain the Community Land Trust model. You will learn about SCH’s eligibility requirements, ground lease and resale formula. We will also review the homeownership application process step by step.

• Determine your eligibility and willingness for commitment

You may be eligible to purchase a SCH home if you meet the criteria listed under the “Eligibility Guidelines”.  SCH advises potential homeowners to read through the entire information packet provided at the Homeownership Orientation and review the Eligibility Guidelines. Then you must determine your willingness to complete all of the necessary steps. Please give consideration to the time involved in taking the homebuyer education classes (between 8 to 50 hours depending on the applicant’s needs) and the schedule of SCH fees.

• Schedule an Interview with SCH Staff and submit homeownership application

After attending a SCH Homeownership Orientation, schedule an interview with a SCH staff person to submit your completed application along with the SCH membership fee
(if you are not already a member), credit verification fee and the SCH application fee.   The order in which applications are completed will determine a household’s placement on any SCH waitlists (it’s a first come first served basis except as necessary to satisfy funding requirements and to comply with our MOU with Habitat for Humanity.) 

• Attend approved Homebuyer Education Classes

In order to complete your application, SCH requires a certificate of completion from the head(s) of applicant households, stating they have completed an SCH approved Homebuyer Education Program.  Check with SCH for a list of currently approved education programs in your area. Homebuyer education is mandatory and will give you the basic tools to move through the home buying process with knowledge and comfort. 

 

Saratoga Community Housing - Homeowner Eligibility Guidelines

Definitions:

Applicant(s) - Household applying for SCH housing. This includes all adults age 18 or older living in the home.  Households are not eligible applicants if any member of the household currently owns a home.

Income - Is calculated using all adults age 18 or older in the household (possible exemptions for students) and includes all wages: overtime and tips, interest and dividends, social security, annuities, pensions, unemployment, disability and severance compensation, alimony and child support, and most forms of public assistance.

Asset - Includes: savings, investments, land, recreational vehicles, or similar items.
Note: household possessions, cars, and Individual Retirement Accounts (IRA's) or Defined Retirement Accounts are not included in asset calculation.

Debt - Includes: any long-term obligations (with a repayment period of more than 6 months) such as automobile payments, child support, student loans and the minimum monthly payment for all credit card accounts.

Eligibility Requirements:

1. Minimum residency:  The applicants must currently live in and have lived in Island County Washington for at least one year.

2. Income: Applicants must have enough income to pay the monthly mortgage, taxes, and insurance. However your household income may not exceed 80% of the median income for Island County for your household size. In 2009 the maximum gross income by family size is shown in the table below. These figures are gross annual income, before taxes are withheld. Proof of income is required as part of the application to SCH.

                                                                                            
3. Credit Rating: Applicants must have a good credit rating showing no significant delinquencies in the past year and no bankruptcy in the past three years.

4. Debt: At the time of the mortgage application, the Applicant’s total Debt (including the costs of the house) should not exceed 40% of their income.

5. Employment or other income: Applicants must provide proof of steady employment or income for at least one year. Self-employed individuals must demonstrate proof of earnings with tax returns for the past two years. Self-employed individuals income is evaluated after business expenses are removed from the gross income.

6.  Assets: If the applicants have total assets valued at more than $7,500 ($10,000 for seniors age 65 or older), they may be required to use them towards purchasing the home.

7.  Closing Costs: Applicants must have access to sufficient funds to cover the initial closing costs of buying the home.

8.  Membership: Applicants must be members of SCH

9.  Education: Heads of Households must attend a SCH Homeownership Orientation and complete a Homebuyer Class approved by SCH.

10. Background Check:  All applicants must give authorization for a complete background review including a criminal background check.

Note: Even if you do not think you qualify, you should talk to a SCH staff person to determine if you may be eligible now or in the future.  Keep in mind, the road to any type of home ownership is challenging.  However, under the CLT homeownership model you have a partner in this process and we are here to help you become a successful homeowner.  We understand that every applicant is different and will move through the process at their own pace. Some homebuyers come to us ready to buy then it’s a very short process. Others may need more preparation to get ready for homeownership and it could take them a year, or two, or more to get ready.  You just have to get started and realize that the work you are doing now will pay off in the long run.