Tips for Realtors®: What to Do When You See a Habitat Home on MLS

Guest blog by Jen LaCroix, Open Market Lending Manager, TCHFH Lending, Inc

Recently, I received a call from a Realtor. She saw a Twin Cities Habitat home listed on the multiple listing service (MLS) database, but she was representing someone not currently in our homeownership program. She asked a great question: Can a homebuyer not using our mortgage—or someone who has not been through our homebuyer program—purchase a Habitat home?

If you've wondered the same thing, I have good news. Yes! If a home is listed on the MLS, you can make an offer. But before you do, here are a few things to know first:

Habitat Rates and Requirements

Twin Cities Habitat provides reduced rates and affordability subsidies, thanks to several public funders. To comply with the requirements of those public funders and Community Development Financial Institutions Fund (CDFI) lending regulations, we must verify the income of anyone who purchases our houses. When you submit an offer, you will be asked to provide income documentation to ensure your buyer is below 80% of the area medium income (AMI). You can find an AMI chart here. Your client must be a first-time homebuyer who has lived in the seven-county metro area for at least one year.

Inspections

Most Habitat homes on the MLS have had recent renovations or updates. While hiring an inspector is never a bad idea, you can make an offer knowing Habitat homes have been tested for hazardous materials (lead, asbestos, and radon) and have been audited by an energy rater.

TruePath Mortgage

If your homebuyer qualifies to purchase the Habitat home, they are eligible for TruePath Mortgage. If they need additional down payment assistance or lender-paid closing costs, your client can move directly to our lending team to begin the loan application.

Working with a client, have questions, or wondering what's available on the MLS? Email me at jen.lacroix@tchabitat.org!