Homebuying Process
& Eligibility

Affordable housing is a fundamental pillar of healthy, thriving communities. It ensures that all individuals and families have access to quality, safe, and stable places to live. When housing is affordable, residents can allocate resources to other essential needs such as education, healthcare, and employment opportunities which fosters personal wellbeing and economic stability.

Recognizing the need for affordable housing options, we focus on constructing brand new, high quality homes that are both affordable and move-in ready. The homes we build are "turn key" meaning that once the home is completed, families can move in immediately without the need for additional renovations or upgrades. Our Homeownership Program is designed to bridge the gap for families who are ready for homeownership, but would not be able to afford a home at market rate.

Understanding How the HOME, Inc.'s Homebuying Process Works

To be eligible:

Household's total gross income must be 80% AMI* or below
Must have a valid mortgage pre-approval at the time of application. (pre-qualification is not sufficient)
Depending on the property, applicant may need to meet the definition of a first-time homebuyer**, as defined by HUD.

*Area Median Income (AMI) 2025:

This number is based on the total number of people in your household and the total gross income of your household.

80% AMI

1 Person: $64,150.00

2 People: $73,300.00

3 People: $82,450.00

4 People: $91,600.00

5 People: $99,000.00

6 People: $106,300.00

7 People: $113,600.00

8 People: $120,950.00

**First-Time Homebuyer Definition:

An applicant is considered a first-time homebuyer if they have not had an ownership interest in a principal residence in the past three years. This definition also includes:

Individuals who have never owned a home.
Single parents who only owned a home jointly with a former spouse.
Displaced homemakers who previously owned only with a spouse.
Individuals who own or have owned a mobile home not permanently affixed to a foundation in accordance with local regulations.
Individuals whose only prior homeownership was a property that did not meet applicable building codes and could not be brought into compliance at reasonable cost.
Be a military member with discharge of other than dishonorable.

Selection: After the application window closes, our team will review all applications within five (5) days using an objective scoring system ensuring accuracy and fairness to assess a family’s financial and housing stability, ability to benefit from the program, and readiness for future homeownership.

If multiple families score and qualify equally, a randomized lottery may be used to select the final applicant.

The applicant selected through this process must sign a Purchase Agreement within five (5) business days after being notified of selection to confirm participation. If this is not completed, the next applicant will be contacted.

HOME Inc. employs a weighted, objective scoring system to evaluate applicants and ensure that homes are awarded based on both readiness and need. Scoring is based on the following criteria:

Applicants must have a valid mortgage pre-approval at the time of application.
Depending on the property, applicants may need to meet the definition of a first-time homebuyer.
Additional consideration is given to household size. Priority is given to applicants whose household size aligns with the number of bedrooms in the home, with at least one person per bedroom.
Applicants who have completed Homebuyer Education within the past three years will receive additional points.
Additional points are awarded to those who have successfully completed Pre-Purchase Counseling within the past three years.

**In the event that a selected applicant becomes ineligible, withdraws, or fails to meet purchase agreement requirements, HOME, Inc. will immediately contact the next eligible applicant based on the original scoring and lottery process. If there is no remaining eligible applicants are available, the application process for that home will be reopened to the public. In this event if the house is past the framing stage, then customization will not be an option.

All selected applicants will be required to sign a legally binding Purchase Agreement with HOME, Inc., facilitated by the Property Development Team.

As part of the Purchase Agreement process, applicants must:

Provide full income documentation for verification purposes.
Agree to participate in any required counseling sessions up to the point of closing.
Demonstrate that their projected monthly housing cost, including principal, interest, taxes, and insurance (PITI), does not exceed 30% of gross household income.

The agreement will clearly outline the conditions of purchase, including the possibility of disqualification. An official document will be included to formally terminate the agreement in cases of noncompliance or ineligibility, ensuring legal clarity and program integrity.

Selected buyers may be permitted to make certain pre-approved design selections, depending on family size and eligibility. In this event if the house is past the framing stage then the customization will not be an option.

Before closing, applicants will undergo a second income verification to ensure ongoing eligibility. Following the successful purchase of the home homeowners will be invited to attend a Post-Purchase Class to support long-term success in homeownership.

Application Period: Applications open about 30 days before construction begins on the new home. Applications can be found on our Available Homes page. Construction is expected to be completed within 6 to 9 months from groundbreaking.

Required application information includes:

The number of individuals residing in the household.
Proof of mortgage pre-approval from a lending institution (pre-qualification is not sufficient)
Documentation of total household income, prior to taxes.
Applicants must be prepared to provide documentation to support their first-time homebuyer status if requested.

How long is the application window open?

The application window for a home opens the day we break ground for construction and will be open for 30 days. See our Available Homes here!

I applied, does that mean I get to purchase this home?

Applying does not guarantee selection for the purchase of one of our homes.

Once the application window closes, our Property Development Team will review all applications within five (5) days using an objective scoring system ensuring accuracy and fairness to assess a family’s financial and housing stability, ability to benefit from the program, and readiness for future homeownership.

The team will select the highest scoring and most qualified applicant for the purchase of the home. If multiple families score and qualify equally, a randomized lottery may be used to select the final applicant.

Can I apply for more than one home?

Yes! You can apply to each home you are interested in. But please only apply to each home once. Submitting multiple applications for the same home can delay the review process.

I need to update my application, what do I do?

Please contact our team to update you application. Email propertydevelopment@homeincdsm.org or call 515-243-1277. Please do not submit another application. Submitting multiple applications for the same home can delay the review process.

Will the timing of my application affect my score?

No. All applications submitted within the 30 day window receive the same consideration with our objective scoring system to ensure fairness for all applicants.

How do I get a mortgage pre-approval?

You can go to any bank or lender to get a mortgage pre-approval.

Please contact us for the list of lenders we have worked with in the past who are familiar with our program.

Will a mortgage pre-qualification work instead of a pre-approval?

Unfortunately no, we require a mortgage pre-approval. An application without this will be denied and the applicant will need to reapply with a pre-approval.

Could I take a Homebuyer Education Class before applying to get those additional points?

Yes! We always encourage potential homebuyers to take Homebuyer Education to better prepare them for the homebuying process and homeownership! We offer in-person and online Homebuyer Education classes. Or you can take a class through another organization. You will need a certificate of completion to submit with your application.

If the application window is open and you plan to take a Homebuyer Education Class within those 30 days to earn more points and increase your chances to be selected - please wait to submit your application until after you complete the course. The application period lasts 30 days.

How will I know if I was selected or not?

Applicants who are selected will receive an email outlining their next steps. This will include scheduling an appointment to sign the Purchase Agreement.

Applicants who are not selected will be notified and provided with additional resources. These resources include information about upcoming Homebuyer Education classes, links to one-on-one counseling services, and guidance on preparing for future homeownership opportunities - whether through HOME, Inc. or other organizations.

What parts of the home can I customize?

The selected applicant for a home may be permitted to make certain pre-approved design choices from our catalog. Customization options include: interior and exterior paint colors, LVP color, carpet color, and countertop color. These choices will be made with our Property Development Team early in the process.

Post-Selection Buyer Support:

Selected applicants will receive a Homebuyer Resource Guide designed to support them throughout the construction and homebuying process. This packet will include guidance on maintaining financial eligibility, such as avoiding new lines of credit, large purchases, or co-signing loans. It will also contain home maintenance resources and a timeline for the next steps.

By setting clear expectations and offering educational support and counseling, HOME, Inc. ensures that every selected homebuyer is well-prepared not only to purchase their new home, but to sustain homeownership for the long term.

Homebuying Process & Eligibility

Understanding How the HOME, Inc.'s Homebuying Process Works

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Homebuying Process
& Eligibility