STEPS TO BECOME A HOMEOWNER
STEP 1
AMI Lower Than 80%
To qualify for our subsidized homes, your household income must be less than 80% of the Area Median Income (AMI) for your county.
The AMI is updated annually by HUD, and in Central Oregon, it has increased by about 3-4% per year over the last two decades. The most recent AMI figures are listed below, but keep in mind that they may change by the time you’re ready to purchase.
Additionally, we can work with buyers who have a Section 8 housing voucher for home purchases. Please reach out to your voucher provider to confirm if your voucher is eligible.
STEP 2
Homebuyer Education
Complete the Homebuyer Education and Financial Fitness workshops. We partner with NeighborImpact, but courses through other HUD-certified instructors are also acceptable.
NeighborImpact also offers individual homebuyer coaching and matched savings programs to help you prepare for homeownership.
You can move to the next step without the course, but you will need to complete it before closing on your home.
STEP 3
Closing Cost
You must be able to cover closing costs, which range from $7,000 to $14,000. While assistance may be available, a minimum contribution of $1,200 is required to cover your earnest money and some upfront expenses.
If you have assets, you might be required to contribute some or all assets valued over $20,000 toward the home purchase. These assets include savings, land, mobile homes, recreational vehicles, boats, and similar items. Household possessions, non-luxury vehicles, tools, retirement funds, and pensions are not considered assets for this purpose.
STEP 4
Other Requirements
In addition to the above steps to become a homeowner, you should also meet the following:
- Contribute some or all assets over $20,000 in value to the home purchase. Assets include savings, land, mobile homes, recreational vehicles, boats, etc. Assets do not include household possessions, non-luxury cars, tools, retirement funds, or pensions.
- Cannot own any other real estate. If other real estate is owned, it must be sold before a Thistle & Nest purchase.
- No bankruptcy in the past 4 years.
- No foreclosure in the past 5 years.
- Non-housing DTI (gross income) ratio is less than 5-10%.
- Show 1 year of consistent household income.
- Meet Criminal Record Policy requirements
STEP 5
Get Pre-Qualified
Contact a lender and request a loan pre-approval or pre-qualification letter.
Lending Recommedations
If you don’t meet some of these recommendations, talk to your lender about it:
- Minimum credit score 680
- Show past 2-years of income
- Show 2-3 months of reserves at closing
- Maximum bad debt limit 5% (revolving credit, not including auto loans)
- Be a First-time homebuyer by HUD definition–has not owned a home in the past 3 years. Not being a First-Time homebuyer does not prevent you from applying.
List of Lenders
STEP 6
Complete the Eligibility Form
To join our waitlist, complete the eligibility form for the county where you’d like to live. You’ll need to submit your pre-approval letter as part of your application.
If you don’t require a mortgage for your purchase, please contact us directly at info@thistleandnest.org for further assistance.
We are here to
help you find your new home!
