1. How do I know what Income Category I am in?

Income Category Limits are determined by HUD or the Department of Housing and Urban Development(Federal) and HCD or California Department of Housing and Urban Development(State/Ca) and are area or county specific by household size. Please see the published category limits HERE. Please note: The total household income shown is the maximum for the range of that category. Now that you have the Income Category sheet, find the grid for the county of the home you are considering. Then find the column that has the total number of people in your household. Next, go down the column until you find the amount your total household income falls BELOW. The category to the left of that amount is the Income Category for your household. Now knowing your category, you want to find the oppoertunties or homes that are in the same category.

2. What are the "Initial file Documents"?

The Initial File Documents are the 5 items from the Document Checklist that are needed to be submitted by the File Submission Deadline for the inital review. It is the submission of these documents, combined with your lottery Ranking that will determine the order of review. For this reason, it is suggested to gather and submit these documents as soon or soon after yuo enter a Drawing. Do NOT wait until the File Submission Deadline. These documents are as follows...

• HouseKeys Program Apllication
• Latest Tax Returns
• Loan Pre-Approval
• Last 30 Days of Paystubs
• Proof of Down Payment Funds

3. Are there any program restrictions?

Yes. For each of the programs, there is an application guide and participation guide that details the restrictions. If you purchase an affordable home (e.g. Below Market Rate or BMR home) there is a resale restriction agreement that you sign that places limits on how you refinance the home, sell it, or transfer to your heirs.

4. Are there any units available for applicants with disabilities?

We don't currently have any units specificically built for applicants with disabilities. A quick note: there are programs that provide grant funding to qualified homeowners to help pay for the cost of making changes to the home that would make it American Disabilities Act (ADA) compliant. Any changes would require permission from the municipality running the program.

5. Are FAQ Sessions be Recorded?

Yes

6. Can a Single Person apply for this Program?

Yes. A single person can apply for the program. There are minimum household size requirements for certain opportunities. You also should keep in mind that we do have one bedroom units from time to time.

7. Is the Program Orientation Class Mandatory?

Yes. Each individual who plans on being on title for a home purchase or whose name will be on the lease document must attend a live orientation, if it's available. If an online option is provided, each individual must take the online class and pass a quiz. Due to COVID-19 restrictions, HouseKeys and the municipalities have had to adjust orientation requirements and allow all applicants to complete the requirement remotely or through the website.

8. How does the Below Market Rate (BMR) Program Aid with the Purchase Process?

Affordable Housing Programs price homes for rent or sale based on affordability calculations created using the annual local median incomes. The goal of these programs is to provide affordable housing without relying on market conditions. HouseKeys facilitates program administration on behalf of local government agencies (municipalities). We also assist applicants to navigate the application process and connect them with lender partners who have commited to following the program rules and providing service to applicants.

9. Is the income eligibility based on projected income or averaged income?

For the Program Eligibility, the income will be projected going forward 12 months. This is to ensure that the total household income (gross income before taxes are taken out) is below the income limit for the available housing opportunity. When determining if an applicant can afford the housing payment, the program underwriter will calculate the averaged income over the previous 24 months.

10. What are the steps to purchase a home?

First, check out this Applicant Roadmap. The Key Steps to Purchasing a Unit Include:

• Visiting the website for the program
• Signing Up for an account at https://www.myhousekeys.com
• Obtaining an Application I.D.
• Entering an Opportunity Drawing for a Home You Are Interested In
• Applicants in the Opportunity Drawing will be randomly ranked using a Lottery System

Please note: If an Applicant obtains an Application I.D. and receives a notification about Opportunities or Opportunity Drawings, that does not mean they have a completed Application. The HouseKeys process delays the full review of the application packet until a lottery process is completed and applicants are listed in the Opportunity Drawing in the order that will determine when their file will be processed. When the applicant's file is requested, they will be expected to have an application packet ready. Application Packets are available on each of the municipal program websites.

11. How does the Lottery work?

The Lottery is the random process that assigns a ranking number to Applicants who enter their Application I.D. into an Opportunity Drawing. When the Lottery is performed, all Applicants in the Opportunity Drawing receive a ranking number. This determines the "Initial Ranking". Applicants who meet Preference or Priority requirements are listed first and their randomly assigned number is the "tie breaker" when multiple applicants have the same Preference or Priority status. The combined list that shows Preference/Priority Holders listed with Non-Preference/Priority Holders is called the "Final Ranking" and this is the list used to request files and process buyers or renters for housing Opportunities. Please Note: a "Preference" or "Priority" is a status created by the local government agency (municipality) that targets applicants who meet specific criteria (e.g. teachers, veterans, residents, government agency employees, etc.).

12. How are Household Members and Household Sizes Determined?

At HouseKeys, we realize that there is no standard household. The U.S. Census defines "household" as including all the persons who occupy a housing unit as their usual place of residence. As a Program Administrator, HouseKeys is responsible for reviewing application packets and determining who will be living in the available home and using the verified number of household members to determine the maximum income limit. It's important that the applicant is honest and can provide documentation that confirms that the individuals planning on occupying the home will be living together for the term of the agreement as most restriction agreements require owners to occupy the home as their primary residence year-round.

13. What if I have inconsistent or seasonal income (e.g. construction), will I still be eligible?

It is important to note that income is projected based on what the underwriter determines the applicant will earn over the next 12 months. Applicants with seasonal income, bonuses, commissions, recent raises, all have income scenarios which must be evaluated using additional documentation. Any applicant with a unique income scenario, should be prepared to explain the previous 2 years of income history and how they plan on earning income over the next 12 months. The underwriter may not agree, but it this explanation helps to understand the rationale behind how income is earned

14. Can you tell me more about the HUD-Approved Group Education or “8-hour class” for first time homebuyers?

The Department of Housing and Urban Development (HUD) has Approved Counseling Agencies throughout the United States and maintain a list on the HUD Website. These Agencies provide individual counseling and group education. Though the class may be provided with different time increments, it is popularly known as the “8-Hour Class”. Before taking a class, confirm that you are working with a HUD Approved Counseling Agency. They should be able to provide paperwork confirming this or it may be posted on their website. HouseKeys honors the certificates issued to attendees for up to 2 years. Double check the Application Guide to confirm. Since this is a federal program, you can take a class anywhere in the U.S. We recommend taking one in California if applying for California programs. This is not the same as the Orientation Class that HouseKeys requires prospective applicants to take to learn about the application process for a specific municipality (e.g. City of Morgan Hill Affordable Homeownership Program).

15. If someone is not ready when their Application I.D. is selected for a Lottery (Drawing), are they eligible for future drawings?

Yes. It is important to note that your Application I.D. is meant to be used repeatedly to enter Opportunity Drawings and be eligible for the Lottery Process that takes place. If you are not ready, you can opt-out and re-enter another Opportunity Drawing when you are ready.

16. What if my family situation changes after I apply?

We understand that family situations can change over the course of time. This is not a problem and does not disqualify you once you are approved, enter an Opportunity Drawing, are selected for a Lottery, and go through the underwriting process to obtain a home. That said, it is very important that what you submit on your application is true and correct. If it is discovered that you withheld information during the Application Process, this could be determined to be fraud, and the municipality (City, Town, etc.) would be within their right to force the sale of the home or the termination of lease.

17. What if my income increases beyond the income limits in the future, will I lose my ownership eligibility?

No. Once you are approved as an eligible buyer for a home, that eligibility certification is good, and your income can change afterwards. Just as with your household size, everything must be true and correct to not be suspected of fraud. If your application was honestly submitted and you provided all the information, then your income can increase without causing any issues with your homeownership status.

18. If I have a previous pre-qualification letter in place with my lender, and my credit score changes, can I still purchase using the old pre-qualification letter?

No. Your credit score must be valid within 30 days of submission to the program underwriter. When you enter an Opportunity Drawing, the Lottery is held, and your application is selected, the Underwriter will likely request updated lender documents. This will likely reveal any changes in credit score. If the program has a credit score minimum, then this could disqualify your application. Keep in mind, there are some programs that have a low credit score requirement or no credit score requirement at all.

19. Can I wait to apply for a loan until after I am selected by Lottery?

We do not recommend waiting. If you are selected, you will be expected to provide all documentation within 3 days. This does not give you enough time to seek a lender pre-qualification letter. By the time you see the Opportunity Drawing announcement, you will want to get lender approval so that once the Lottery is held, you are ready to go. If you are not ready, we will have to move on to the next Applicant who is.

20. Are there any benefits for First-Time Home Buyers?

First-Time Home Buyer status is typically a standard requirement for Below Market Rate or Affordable Homeownership Programs. There are programs (E.g. City of Hayward’s SoHay Project by Taylor Morrison) where there is no first-time homebuyer requirement, but this could be a unique program or project.

21. How does one go about selling a restricted unit before the restriction ends?

Selling a restricted home is very different from selling a non-restricted home. There is a process that involves calculating the base price, accounting for any approved and eligible improvements that were made to the home, and accounting for repairs. This process differs from agreement to agreement, but the process can take 4 to 8 months due to all the steps involved – including the requirement to re-sell the home to another eligible buyer. Market conditions are also very important. If the Fair Market Value of the home is low, buyers may not be interested in buying the home from you. In markets that are high, the affordable price looks more attractive. Even though you are purchasing an affordable home, there are still market factors that impact the speed of the sale.

22. How do I validate attending a BMR Orientation?

When you attend an in-person orientation, there is a registration process, you attend the meeting, and you sign in before the meeting starts. This is the validation process. During the online process, you will complete a quiz and your quiz confirmation will serve as your validation. Please note that each person on title must complete the orientation class.

23. If my spouse/partner does not work, should they be on the loan and title?

Due to the nature of the program, a spouse or partner will be required to sign the restriction agreement and be on title in most affordable homeownership programs. We do not currently have many rule books that speak to what the mortgage loan requirements are, as this does not immediately affect the status of the home.

24. Do you have any recommendations on how to select the best loan officer?

We do not endorse any loan officer. We are working on a rating system that will be based on input from applicants and buyers. We encourage our lending partners to be: 1) responsive, 2) knowledgeable of the program rules, 3) knowledgeable of financing programs for first-time homebuyers, and 4) compliant with program rules. We are constantly working on ways to evaluate our partners. We welcome feedback.

25. When is the best time to work with a loan officer?

You cannot be too early when it comes to working with a loan officer. The conversation that you have with a loan officer is very different from any other you have had with other financial professionals. You want to gain an understanding for your score, your required down payment, the maximum payment you qualify for, the maximum payment that makes sense for your budget, and to have a game plan to fix any areas of our application that can be pointed out early. You want to also keep in mind that you need time to get the documentation together that the lender and HouseKeys may ask for. The loan officer can be very helpful in helping you prepare for upcoming Opportunity Drawings and to be ready when the Lottery is held.

26. How do I start the process? What is the first step?

The first step would be to visit the MyHouseKeys Website and set up an account. You can request an Application I.D. for the program you are interested in. See this Applicant Roadmap for a visual explanation. You can find program forms for any specific municipality (city or town that makes the program rules) by visiting the HouseKeys Muni Page. HouseKeys creates a website for each of its municipalities and it contains all the information, program documents, and guides for that specific program. Each program has different rules, so it is important that you visit the program pages to get familiar with each program.

27. How long does the process take? How fast can I move in after accepting a home?

The process to purchase an affordable unit can take a long time. There are non-program issues like the new construction timelines. These timelines can easily be delayed ranging from 6 to 18 months. Once we schedule an Opportunity Drawing, we try to announce it at least 2 weeks in advance of the deadline. Once the deadline passes, we hold the “Lottery” (the random process used to select applicants) and then it typically takes 30 days for the HouseKeys team to get through the first batch of buyers. Once a buyer is chosen, signs the purchase contracts, and obtains financing – the escrow can take 6 months before it is completed. We also have properties that are re-sold from current owners to eligible buyers. This process can be shorter and typically ranges from 2 months to 3 months once the buyer is selected.

28. What paperwork is involved?

There is typically a 3-Part Application Packet that you will start with. Part 1 provides the initial action items to help you navigate the process. Part 2 is where you provide Applicant and Household Information (e.g. members, employment info, income totals, asset totals (the items you own), liabilities (the people you owe), and demographic information. Part 3 includes the certifications. These are the items that you confirm and agree to (E.g. you understand that you will sign a restriction agreement with a term of 45 years). In addition to the Application Packet, there is a Documentation Checklist where you will provide supporting documents that confirm what you have stated in the forms. These items include paystubs, tax returns, bank statements, lender documents, etc. Lastly, there are Exhibits that are used to help you explain additional facts about your file (explain deposits, confirm whether someone who is 18 or older does not earn income). HouseKeys does not review any files until an Applicant has been selected through the Lottery Process that takes place inside of an Opportunity Drawing containing one or more housing Opportunities.

29. I have set up my profile (account) on MyHouseKeys, now what?

Once you set up a profile in the system, that puts you on the list as a Household. You will start to receive emails about available housing opportunities. Make sure to “Request an Application I.D.” for the Program that you are interested in. You can start to fill out the forms that are detailed in question 26 and reach out to one of the loan officers on our approved lender list. You will not start submitting documents until an Opportunity Drawing is opened, a Lottery is held, and you are selected as a buyer.

30. Can I apply for a City Program even though I do not live in that City?

Yes. The concept behind the MyHouseKeys platform is to create a marketplace where an applicant can create one account and apply in multiple cities. Keep in mind that there are specific requirements and documents that you must complete for any one program you are interested in. HouseKeys tried to encourage each Municipality to follow the same protocols, but they all have different rules and housing opportunities.

31. Are there bi-lingual sessions held in different languages (e.g. Spanish)?

Yes. HouseKeys has Spanish-Speaking staff and is in the process of creating materials and orientation classes in Spanish. We are working on additional languages as well. Please stay tuned for the updates regarding these materials and we will send an email blast to all our account holders once this information is available.

32. If you didn't find an answer to your question...

Please sign up for a live FAQ session on a Friday or Saturday HERE.