Think you might be eligible to buy a Methow Housing Trust home?
Here are some simple eligibility guidelines:
Methow Valley Resident
You must be a resident and you must have lived or worked in the Methow Valley for at least 12 months, or have a written commitment from a Methow Valley employer. In order to qualify for a mortgage, you will need to demonstrate that you can earn a living while living in the Methow Valley.
Most MHT houses will be sold to buyers who have a gross household income that does not exceed 100% of Area Median Income (AMI). To give you a sense for if you might qualify, the following table shows the approximate income limits based on HUD income figures for Okanogan County in 2019.
At the time you purchase your MHT home, personal assets may not exceed 80% of Area Median Income. If you are of retirement age or have assets in excess of MHT’s asset limit, you may still be eligible for a limited number of MHT homes.
Able to Qualify for an Approved Mortgage
You need to be able to qualify for an approved mortgage to purchase your home, or have adequate assets to purchase it outright. This includes:
Adequate income – You must be able to document adequate, steady income so that your collective housing cost (mortgage, taxes, insurance, HOA fees) does not exceed 35% of your gross monthly income.
Adequate credit – Generally you will be able to get a loan to purchase your home if your credit score is at least 640. If your credit score is lower than 640 or you do not have a score, it may still possible to purchase a home if you can document at least forms of non-reported credit, such as utility bills, landlord references, etc.
Minimum debt – Your total debt payments, including your future house payment, may not exceed 45% of your gross monthly income, depending on your mortgage. MHT staff can help you calculate this. Generally speaking, monthly debt obligations of more than $250 per month, in addition to your house payment, make it difficult to qualify.