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II. Present housing is Inadequate or Overcrowded:

Inadequate means: Problems with the structure (roof leaks, floors sag, poor insulation, etc.); poor  water, electrical or sewer system; environment is hazardous to health (mold, mildew), or extreme overcrowding based on number of occupants, age and sex of occupants and square feet of actual living space.

III. Meet Income Requirements:

1. Applicants must meet the income guidelines stated below which reflect a maximum of 70% of the combined median income for Taney and Stone Counties and not less than 50% of the median income as established by HUD.

2. Mortgage payments must not jeopardize other financial obligations or living expenses.

3. Must make a down payment of $500.00 to be made in nine (9) monthly installments ( 8 @ $56.00 and 1 @ $52.00) This must be earned income by the family. Cannot be a gift or a loan from a third party.

4. Applicants must have a source of steady, legal income and show financial stability by having maintained the same job for a minimum of six (6) months before applying.

5. Applicants must be willing to disclose all financial information to MCHH.  Information will be kept confidential and will only be used in determining the applicant’s financial qualifications.  Debt to Income ratio will also be considered

MCHH builds a minimum of three-bedroom/ one bath homes of approximately 1050 square feet.  The size of a home is determined by the number of people who will be living in the home FULL TIME, and the sex and ages of children, if any.

IV. Must be willing to Partner by committing to:

1. Attend ten (10) weeks of Homeowner classes (One night a week for ten weeks.)

2. Make monthly payments, on time, to MCHH for the down payment on your home.

3. Put in Sweat Equity hours.  A single applicant family has an obligation to put in 400 hours and 2 applicant families of 450 hours.

a. The MCHH partners themselves must put in a minimum of 150 (single applicant) or 200                                     (multiple applicants) hours. Any hours not completed by Friends, Family or Group is the responsibility of the Partner Family

b. 150 hours may be donated by up to five friends or family members not occupying the                            house.  For example: you may choose to have your mother, father, sister and two friends                        help.

c. 100 hours may be donated by a group that you solicit such as your Sunday school class or church, a group of employees from work, etc.

Any hours not completed by friends/family must be completed by the MCHH Partner Family.

If the sweat equity obligation and/or down payment obligation has not been met by the time the home is ready for occupancy, the partner family will have fifteen (15) days to fulfill their obligation.  If the partner family has not fulfilled their obligation within that fifteen day time period, the house will be given to the next family on the list and the current partner family will be moved to the bottom of the waiting list.

IMPORTANT: *Applications from approved applicants that file for a divorce or legal separation before closing on their house will be subject to re-evaluation.  Approved Single applicants that marry before closing on a their home must reapply under married status.

*If an applicant moves, changes or loses their job they must notify the Homes of Hope office immediately.  The Family Selection committee will review the new dwelling and/or income status to determine whether the applicant is still eligible for the Partnership program.  The committee may, from time to time, contact the applicant’s current landlord or employer to ascertain if conditions under which applicant was approved is the same.

Failure to report any change in marital status, housing, job or income status within one week of occurrence will result in applicant(s) immediate release from the program. Prior to receiving a home, MCHH will run another credit check to ascertain whether the applicants are maintaining their debt commitments, as well as to check if the applicants are still able to pay the monthly mortgage. If the credit report is derogatory, MCHH reserves the option of refusal to close on the house. They may also choose to make another home visit.

If a family does not fulfill all of the requirements described in Section IV, they will be contacted by letter notifying them that they are being dropped from the program.  If a family is dropped from the program, they receive no compensation for any sweat equity hours completed.  Any down payment money will be refunded less $35.00 to cover administration and credit report costs.

V. Once the family meets the requirements described in Section IV and the home is completed, a date will be set to close on their home.  This is usually no more than two (2) months after the home is completed.  The family is responsible for obtaining homeowners insurance and supplying that information to the MCHH office.  MCHH warrantees the structure of the house for one year from date of purchase.  Any non-structure repairs (appliances, flooring, painting, broken windows, etc.) are the sole responsibility of the homeowner.

A MCHH mortgage is for a period of twenty (20) years.  Monthly payments average between $350.00 to $450.00  depending on the final cost of the house, insurance and taxes.  A portion of each payment goes to pay down the cost of the loan (Principal), and a  portion toward an escrow account from which taxes, homeowners insurance, trash pick up, association fees, if any, and other fees will be paid.  Principal payment will remain the same over the duration of your mortgage; however, your escrow payments may be increased due to a rise in taxes or insurance.  All MCHH Partners are expected to make all house payments on time.  A late fee of $15.00  will be added to any payment that is late over 10 (ten) days.  Continual late payments will result in a Late Fee increase of 20% of monthly Principal payment or in the acceleration of the Note on your home.  MCHH is not responsible for utility bills or maintenance on your home.

During your Homeowner Classes, you will be instructed on the equity gain of your home. You gain no equity on your home during the first five years.  If you move within in the first five years, or lose your home through foreclosure, you will be deemed to have no equity in your home.  After five years, you may sell the house and retain any profit after first paying off your MCHH mortgage.  This home is to be your primary residence. AT NO TIME are you allowed to rent your home to another party as long as MCHH holds the mortgage on your house. Doing so will result in immediate foreclosure.  Further, if your homeowner insurance is canceled and you cannot obtain new insurance, MCHH will foreclose on your home.

If you have any questions please contact the Mountain Country Homes of Hope office at 417-335-2015.