FAQs – Applicants

Q    Why aren’t more for-profit builders active in North Omaha?

A    Years of neglect of the housing stock, homes torn down by construction of the North Freeway and loss of the middle class are some of the factors that have resulted in a deteriorated housing stock, many empty lots and depressed property values.  These depressed property values make it impossible for most for-profit builders to earn a living on renovation and new construction in North Omaha.

Q    Doesn’t the work of Holy Name Housing duplicate efforts of other nonprofits like Habitat for Humanity?

A    It is important to understand the mission of nonprofits when looking at their work.  Holy Name Housing is focused on community development, creating livable, healthy neighborhoods.  Enabling low income working families to become homeowners is a strategy for creating these neighborhoods. HNHC tries to infuse capital into the neighborhoods by hiring small contractors to help with the work.  Habitat for Humanity is committed to providing a home for every American and they are able to serve the very low income family because of their use of a volunteer labor force. 

Q    Are low-income families able to take care of their houses? 

A    Sustainability of homeownership is an important goal for HNHC as well as for the new homeowners.  Pre-purchase counseling and classes focus on the importance of budgeting and home maintenance in protecting the buyers’ investment.  Our 25 -year experience indicates that not only do the majority of the new homeowners take care of their property but they also become involved in their community.

Q    How does the program work for a low income family who could not afford to buy a house on the private market?

A    Low income families must first qualify for a mortgage that is roughly 80% of the sales price of the home.  Many of our buyers are pre-qualified by Omaha 100, a local lending consortium who makes loans targeted to this population. Once pre-qualified by a lender, buyers are eligible for a 0% second mortgage that they do not need to pay on unless they transfer title to their property.  Fifty percent of these mortgages are forgiven if the buyer does not transfer title and lives in the property for10 years.

Q    What are the obstacles for low- income families who want to purchase a home through your program?

A    Credit problems, lack of knowledge of the home buying process, and difficulties in saving are among the obstacles HNHC has encountered in applicants for homeownership.  In order to give these applicants the knowledge and time necessary to address these problems, HNHC has constructed 84 homes in a Crown Program.  Tenants in this program rent new three bedroom homes for $535.00 a month and HNHC saves $50.00 of the rent to help tenants address obstacles to homeownership.  The Crown lease requires that tenants participate in individual counseling as well as classes that address the obstacles to homeownership. Funding through the low income tax credit program requires that the homes remain rental for 15 years but tenants ready for home ownership can purchase homes from HNHC, other nonprofits or the private market.