We believe in a hand up, not a hand out
Houses are sold to approved families through a no-profit, no-interest loan which the family repays with affordable monthly payments. Volunteers provide most of the labor, and individual and corporate donors provide money and materials to build Habitat houses.
Partner families themselves invest hundreds of hours of labor – “sweat equity” – into building their homes and the homes of others. Their mortgage payments go into a revolving Fund for Humanity that is used to build or renovate more affordable houses.
By building affordable housing through the efforts of the Habitat families, faith organizations, and the community, we strive to build self-reliance and self-esteem for families, as well as a strong sense of community and faith in action for partners and volunteers.
How mortgages work to keep them affordable
Since volunteers and prospective homeowners provide most of the labor on a house project, and community partners donate a portion of the materials, the cost of building a Habitat house is much lower than that of a standard Washington County house. The house is sold to the approved homeowner at a standard Habitat pricing structure through a no-profit, no-interest 20-30 year loan.
Thanks to monetary and material donations, the house is completely paid for upfront by Habitat. Habitat then finances the loans to homeowners, who can pay the loan at an affordable monthly rate.
Each family makes a down payment of $400. Mortgage payments, including taxes and insurance, are usually between $550 and $650 per month. Homeowners’ monthly payments go into the construction fund to build other Habitat houses – so homeowners not only receive help, but also give it! Funds donated by generous organizations and individuals are not only used now, but are also an investment for future Habitat houses!
