Many people in Summit and Wasatch counties dream of homeownership but don’t know if it’s out of reach. Fortunately, Habitat for Humanity’s homeownership program is designed to help people make this dream a reality, provided they meet eligibility criteria.

To understand the Habitat for Humanity application process, you need to know the three Cs of how to qualify: credit, capacity, and capital. These factors help determine whether a household is ready to take on the responsibilities of homeownership. In this article, we’ll break down the affordable homeownership requirements and practical ways to improve your eligibility

Please note: This article is general guidance. Please consult a financial professional and Habitat for Humanity of Summit & Wasatch Counties for any program/project specific requirements.

Credit: What Score Do You Need?

Understanding your credit score is your first step. It tells lenders how reliable you are at paying back debts, based on your payment history, current debt, and the length of your credit history. Scores range from 300 to 850, and the higher your score, the better. For Habitat’s Homeownership Program, in which Habitat may serve as both builder and lender, it is recommended that you have a credit score of at least 620.

A lower credit score typically means higher mortgage payments, costing you more money over the life of the loan. To find out where you stand, get a copy of your credit report today (you’re entitled to a free report each year) to check for any errors and understand what’s impacting your score.

To raise your score, start these good habits:

1. Pay bills on time. Set up automatic payments to avoid late fees and missed payments. 
2. Keep your credit card balance below 30% of the available limit.
3. Avoid opening new credit card accounts unless necessary, as a new account can temporarily lower your score.
4. Don’t close your old accounts, since the length of your credit history factors into your score.

Capacity: Can You Afford the Payments?

Homeownership comes with a monthly mortgage payment, and it’s a significant recurring expense. Habitat evaluates whether that payment is affordable for your household by looking at your debt-to-income ratio (DTI), which compares how much you earn with how much you owe.

Your DTI is calculated by dividing your total monthly debt payments—such as car loans, student loans, and credit cards—by your gross monthly income (before taxes and deductions for things like taxes, social security, or health insurance). 

For example, if you pay $1,000 a month in debts and earn $5,000 in gross monthly income, your DTI is calculated as $1,000 ÷ $5,000, which equals 20%. In general, a lower DTI suggests a stronger capacity to afford a mortgage and meet affordable homeownership requirements.

Here are some ways to improve capacity:

1. Pay down any existing debts you can, especially high-interest credit cards.
2. Increase your income. Are you eligible for a raise or promotion? Could you add a side hustle?
3. Avoid taking on new debt if you can. 

Capital: How Much Money Will You Need Upfront?

Capital refers to the money you have available to cover upfront and ongoing homeownership costs. Closing costs typically include a down payment on the home along with fees for appraisals, inspections, and processing. You’ll also need your first month’s mortgage and insurance costs.

As with the previous two Cs, the more work you do today, the better position you’ll be in to have your Habitat for Humanity application accepted. 

To build up your capital:

1. Cut unnecessary expenses.
2. Set a strict budget. 
3. Take advantage of Habitat’s education programs to build strong money-management skills.

Taking the Next Step with the Habitat for Humanity Application Process

Strengthening yourself in the three Cs will put you in a better position to meet Habitat’s affordable homeownership requirements when you apply. The Habitat for Humanity application process is designed for families who are committed to working toward stability and investing in their future. Keep checking our website to find out when we’re accepting applications to our homeownership program.

If you’re ready to learn more about affordable homeownership requirements in Summit & Wasatch counties, register for our FREE class, Affordable Housing How-to.

Next session:
Tuesday, February 10, 2026
Blair Education Center, 900 Valley Drive in Park City
English Session - 5:30pm-6:30pm
Spanish Session - 6:30pm-7:30pm

Presentation done in partnership with Mountainlands Housing Resource Center and Park City Municipal.