Debt Barrier Removal Program

The two main causes for denial of financing for households has been debt-to-income ratios and credit history. The purpose of the Debt Barrier Removal Program is to help correct credit challenges now to allow for wealth creation in a way that only Habitat’s homeownership model can address. We sell homes at cost which is historically well below appraised value. This gives Habitat room to absorb homebuyers’ prohibitive debts in the price of the home without affecting mortgage financing. Maximum repayment amount of $50,000.

How does it work?

Everyone who applies for a Habitat home is screened for the Debt Barrier Removal Program; it does not need to be applied for separately. Eligible applicants will be mortgage-ready (income, assets, credit, etc.) but have excessive debts that are hindering their ability to purchase a home.

If selected, Habitat will determine which debts to pay off to set you up for the most success when applying for your loan.

What debts qualify?

Any debts qualify as long as they affect your ability to get a home loan (except car loans). For example:

• Student Loans
• Back Child Support (must be current and paying as agreed at time of application)
• Tax Liens or other government judgments
• Credit Card Debt

Questions?

If you have questions about the Debt Barrier Removal Program, please email apply@habitatskc.org or call 206-866-7615.