FAQ: Homeownership Program

1. How long do I need to be employed at my job in order to be eligible to apply for the program?
In order to be eligible for the MHFH Homeownership program you must be employed at your current Full-time or Part-time job at least one full year.  You are allowed to switch employers but stay within the same industry as long as you have been in the same industry a year or greater.

2. What sources of income can be used toward qualification?
MHFH will accept income from Full-time, Part-time wages, self-employed individuals who have filed Federal Tax returns with Schedule C for at least 2 years, Social Security, Disability, Child Support, Alimony, and Kinship Income.

3. What sources of income cannot be used toward qualification?
MHFH will not accept Food Stamps or W-2 as income.

4. Why do you need all of my personal documents, i.e. bank statements and paycheck stubs? 
MHFH is qualifying applicants for a mortgage.  We must verify your income, credit and assets.  During the application process you may be asked several times to provide updated documents.

5. What if I am married or separated from my spouse?
If an individual is married and seeking to apply for the MHFH Homeownership program both individuals must apply and meet the qualifications for the program.  If an individual is separated from their spouse but not legally divorced, they must wait until they are legally divorced in order to apply for the Homeownership program.

6. Where can I get a free copy of my credit report?
Annually you may request a free copy of your credit report from AnnualCreditReport.com or you can mail a letter to requesting a copy of your credit report to:
Annual Credit Report Request Service
PO Box 105283
Atlanta, GA 30348-5283

7. Who should I contact if I know I have more than $500 in collections on my credit report?
You should contact a HUD Approved Counseling agency for FREE credit counseling. Here is a list of HUD Approved Counseling Agencies.
Please beware of businesses that will promise to fix your credit score or credit report.  Any business that makes promises to fix your credit is a scam.

8. What is debt-to-income ratio?
MHFH uses debt-to-income ratios to calculate whether or not the potential applicant is in a financial position that would allow them to afford a mortgage payment.  MHFH guidelines require that applicants qualify according to set ratios.  MHFH is a front end ratio of 30% and back end ratio of 40%.  MHFH requires that an applicant’s front-end housing ratio isn’t greater than 30% of their gross monthly income and Debt-to-income ratio isn’t greater than 40%.

9. What if I filed for Chapter 7, 13 or any form of Bankruptcy?
Any applicant that has filed any form of Bankruptcy must wait two years after the discharge date to apply for the MHFH Homeownership program.   Please verify the date listed on your Bankruptcy discharge letter.

10. Can I rent my MHFH Home?
The MHFH Homeownership program is intended for owner-occupants.  MHFH does not allow its homeowners to rent their homes.  Any MHFH homeowner that is found to be renting their home will be foreclosed on.  Any applicant that applies for a MHFH homeownership program with the intent to rent their home will be deselected and barred from reapplying for the program.