Own Your Own Home

Contact us or call the office at 208-883-8502. Palouse HFH typically opens its application period in late August, about 8 months before the home build is scheduled to start. If we are not taking applications at that time you call, staff can take your name and information to contact you when the application period opens. Please see the Executive Director for questions. Keep checking this page for more information on the application process.

A completed application form with all the supporting documents, including two months of bank statements and pay slips, and two years of taxes. The form asks for a summary of all income and expenses, and a statement outlining need. If the application meets the initial requirements of need, ability to pay, and willingness to partner, PHFH will pull a credit report, run a background check, and interview landlords and employers.

There are three main criteria to apply for a Habitat Home: ability to pay, need for housing, and willingness to partner with Habitat. To qualify you must have live currently in Whitman or Latah County; be living in inadequate housing (some examples: high rent, overcrowding, structural issues, high power bills); and be willing to fulfill partnership obligations, including working 300-400 hours of sweat equity helping to build your home.

Your income must fall within 30-60% of Area Median Income for Latah & Whitman Counties according to the Housing and Urban Development Administration (HUD).  The specific amounts change each year and vary depending on family size. See the chart below for this year's numbers.

Palouse HFH does not require specific credit scores or perfect credit history. However we cannot build with individuals or families who have filed bankruptcy within the past three years, have over $2000 in charge offs or would have over 43% in debt to income ratio with a Habitat home added to their expenses.

If your application meets the initial criteria, a selection committee member will review your credit history and check references, and assess your debt to income ratio. The total ratio of debts to income cannot be over 43%.

Examples of income Palouse HFH will consider when determining if your income meets our range: income from annual or seasonal employment, disability, child support, food stamps and other government assistance. Employment must be reasonably expected to continue for two years. However, when determining debt to income ratio, any income dedicated to a specific purpose, such as food stamps, cannot be considered.

No, there is no application fee.

Recent Palouse Habitat home payments are set based on 30% of the gross monthly pay of the homeowner.

Habitat requires that a future homeowner contribute $1000 towards closing costs, which can be saved in monthly payments during the home build.

Habitat offers an affordable, zero interest mortgage based on the homeowner's income.

Once the home is finished and the future homeowner has completed their obligations (including sweat equity hours, trainings, and $1000 saved towards closing costs), Habitat will prepare to sell the home to the future homeowner.

The home will be appraised by a certified professional to determine its value. The homeowner will receive a copy of the appraisal. The homeowner will secure homeowner’s insurance. Before the final closing date Habitat staff will meet with the future homeowner to ensure all elements are in place, to verify the mortgage amount, and to walk the homeowner through the paperwork associated with sale of the home. 

At closing (purchase of the home), the homeowner and Habitat staff will meet at a local escrow company. The escrow company will set up an account to manage the mortgage, property tax, and homeowner insurance payments in one monthly payment. The first year of insurance and taxes will be included in the escrow account.

Habitat has a two-tier mortgage. The 1st mortgage is set so that the monthly payment equals 30% of the household’s monthly gross income over a 30-year mortgage. Interest is 0% so long as the note is current.

For example, if the household earns $17,424 (30% of Area Median Income for a two-adult household in 2021), the monthly income is $1,452, and 30% of that amount is $435.60. This number would be the monthly mortgage payment. (Property taxes, homeowners insurance, and utilities would be an additional cost.) 

Multiplying $435.60 times 12 (months in year) and by 30 (years in the note), we arrive at $156,816 for the total first mortgage. Note, if the appraised value is less, that amount will be selected instead. 

A 2nd mortgage will cover the difference between the appraised value of the home and the 1st mortgage. For example, if the home’s appraised value is $250,000 and the 1st mortgage is $156,816, the 2nd mortgage would be $93,184. This is called the “Silent Second” meaning the homeowner does not make monthly payments on this mortgage. 

If the Habitat homeowner sells the home or if title is transferred in some other way (for example if the homeowner passes away and the home is transferred to heirs) the balance of the 1st and the entire 2nd mortgage must be paid to Habitat. 

When that happens, Palouse Habitat and the homeowner share 50/50 in any appreciated value (appreciated value is any increase over the initial total value of the home). If the home decreases in value, the homeowner is responsible for any amount due to Habitat.

All Habitat homeowners are required to spend 300-400 hours helping build their home. This is instead of having to save a down payment, and it is in line with Habitat's "hand up, not a hand out" philosophy. Habitat homes are built with volunteer labor donated by community members. It is appropriate for the homeowner to work alongside those volunteers.

The majority of those hours must be put in on the build site, but Habitat homeowners are also encouraged to volunteer at the store, or elsewhere within Habitat or the community. The volunteering can be done by those living in the home, as long as they are over age 16; a portion can be donated by friends, family, co-workers, etc.

In cases of disability, Habitat will work with the homeowner to design volunteer opportunities tailored to their abilities.

If you are interested, watch this page for more information.

You can call the office at 208-883-8502 or Contact Us and ask to be on the contact list for when the next search begins.

Please provide your full name, phone, email (if you have it), mailing address, and how you heard about becoming a Habitat homeowner.

Want to learn more? Visit our "About" page or contact the office for specific questions.