Residents Take First Steps Toward Homeownership

Monday night was the first step for about a dozen people toward possibly purchasing a home that will be restored by Habitat for Humanity.

The potential homeowners attended an information session at Thornton Wilder Hall at the Miller Memorial Library to learn about the steps it takes to apply for and be chosen to purchase the home with a zero percent mortgage.

The town at 390 Gilbert Avenue to Habitat for Humanity, along with a third of an acre of the 32-acre piece of town-owned land, for $15,000. The rest of the property will remain open space forever, according to Habitat for Humanity officials.

"This house is very unique and we are very, very excited about this home -- they don't come along very often," said Don Delodge of Sleeping Giant Build, which partners with Habitat for Humanity in homes built in the Hamden/New Haven area. "Some of the aspects of this house are pristine."

The house, built in 1890, is a farmhouse that sits on the property known as the Macelli Farm. The town bought the land for open space and the Legislative Council voted earlier this year to give the house to Habitat for Humanity.

The house is about 2,000 square feet and includes four bedrooms and two bathrooms, according to Howard Smith of Habitat for Humanity. It also has a third floor attic that could later be remodeled and used as living space, he said.

It's expected to sell for $125,000, Smith said, and the mortgage payment will be between $900 and $1,000 a month, which includes principal, taxes and insurance. The mortgage interest rate remains at zero percent for the life of the mortgage, Smith said.

But the new owners won't have full equity in the house for the first 12 years, he said, in order to keep them from buying the house and "flipping" it for a profit. Each of the first 12 years, the owners gains more of their share of equity, reaching about 50 percent in year six and 100 percent after the 12th year.

"It's going to cost us more to acquire and renovate the house" than the $125,000, Smith said, but the volunteer work that goes into it makes it possible to sell for the discounted price. The value of the house when it's finished is expected to be around $165,000, he said.

"The home is in really good shape," said Habitat for Humanity director Bill Casey. "There's no rot or mold."

Applicants must meet income guidelines, which usually are 30 to 60 percent of the medium income, but may be higher for this house because the mortgage payment is expected to be higher than the typical Habitat mortgage, Smith said.

Applicants also must demonstrate a need for housing and have a decent credit score, Smith said. While perfect credit isn't required, very poor credit would be a disqualifying factor, he said.

Also required of the new homeowner is the investment of 400 hours of "sweat equity" in the renovation. The new homeowner must personally do 150 of those hours, Smith said, and others can do the remaining 250 hours for them.

"I can tll you it's hard work," Smith said, "but we're not going to put you in a position to get hurt. And it's a lot of fun and you meet a lot of neat people."

There is an army of about 1,000 volunteers who regularly give their time to Habitat projects, Smith said, including attorneys who provide closing services free of charge.

"It reminds me of when people used to get together to build homes," Smith said. "It doesn't happen much anymore but this is where your neighbor helps you."

One woman who attended the session, who gave her name only as Maria, said she is excited at the prospect of owning the house.

"I drove by it a few days ago and I just love it," she said. "And it's really going to be beautiful when it's done."

Owning a home has always been a dream, she said, but never thought it would happen.

"I don't make $100,000 a year," she said, "but I'm already paying $850 a month in rent and I'd much rather pay that for a house I own.

"I'm going to be doing a lot of praying for this," she said.