Family Selection Process

1. Eligibility Criteria

Applicants must meet the following eligibility criteria at time of application:

1. Total household income must be below 80% of area median income adjusted by family size.

2. Must demonstrate ability to contribute a minimum of 1% of mortgage amount.

3. Must complete the Pre-Purchase, Financial Management Classes and Home Maintenance Classes..

4. Total debt ratio may not exceed 41% of household gross monthly income.

5. Housing ratio must be between 25%-29% of household gross monthly income.

6. Liquid assets (as defined by MSHDA) must be below $10,000.

7. Non-housing debt must be below 15% of gross monthly income.  Exceptions to this are allowed on a case-by-case basis in unique situations.

8. No more than 2 late payments in last 12 months.

9. All collections must be paid immediately.  A waiting period of 6 months may apply, depending on the mortgage loan applicants choose.

10. Must have 3-4 lines of traditional or non-traditional credit history readily verifiable.

11. No bankruptcies within the past two years.

12. No accounts that are delinquent or have been "written-off".

13. No more than two rent payments paid 30 or more days late within the last 2 years.

14. No court-created or court-affirmed obligations or judgments caused by non-payment that is currently outstanding.

15. In cases of divorce, MSHDA guidelines will be followed (contact CNH for details).

16. Must be a Newaygo County resident for one year prior to applying to CNH.  Exceptions can be approved on a case-by-case basis.

17. Applicants do not have to be a first time homebuyer to apply for CNH assistance.

2.  Family Selection Committee

Each qualified applicant is required to be interviewed in their current home by two members of the Family Selection Committee(FSC).  The CNH Family Selection Committee is made up of volunteers representing the CNH Board of Directors, local human service agencies, and former CNH homebuyers.  FSC representatives interview each qualified applicant to determine if the family is truly capable of homeownership, eligible for CNH program assistance and what CNH services would best meet the needs of the applicant.  FSC representatives utilize a questionnaire to guide the interview.  The FSC meets at least monthly to review each case and make recommendations for CNH Homebuyer Assistance. 

3.  Family Profile

A Family Profile form is prepared by CNH staff for each applicant and is used by the Family Selection Committee to document their family selection decision for family assistance.

4.  Notification

Each applicant receives written notification of program acceptance or rejection.  A denial letter identifies the reason for denial and provides an appeal process if the applicant chooses to dispute the decision of the agency.  CNH is an equal opportunity organization.