Homeownership

Habitat Homeownership Frequently Asked Questions

How are partner families selected?

The affiliate’s family selection committee is responsible for setting criteria, reviewing applications and carefully selecting the families who qualify for a Habitat for Humanity home.

The committee uses a fair and impartial process.  Applications are available to people in need of simple, decent, affordable shelter, regardless of their religion, nationality, race, political opinion or gender.

The committee conducts interviews and home visits to identify families in greatest needs, without discrimination or favoritism.  The committee uses a clear method to determine which applications get first priority.

The board makes the final selection based upon the committee’s recommendations. 

What families qualify for a Habitat for Humanity house?

Three main criteria:

·        Need for decent housing (i.e., living in inadequate or substandard shelter).

·        Ability to make monthly mortgage payments, and inability to obtain a conventional mortgage.

·        Willingness to partner (which means the willingness to volunteer in the construction of their own home and willingness to pay back the cost of the house.)

Each affiliate has its own set of objective criteria to choose prospective homeowners.

Homeowner applicants must have income within a certain range as determined by the affiliate’s family selection committee.  It is important that the homeowner family can pay for the house without sacrificing other basic necessities.

·        The affiliate tries to help those families earning the lowest income of the limits set in their selection criteria.

·        The affiliate designs and builds simple and decent houses so that the homeowner families can afford them.

What is sweat equity?

Once a family is selected, it is required to contribute sweat equity (or labor) in the construction of its own home (or other supporting activities) and to help other families in building their houses.  The family members invest equity into their home as they actually pound nails, paint, hang drywall, etc.

A family must contribute sweat equity to reduce the cost of the house, increase the family’s sense of ownership and pride in the house, learn how to take care of its own house, and promote partnerships and sharing in the community.

There are many ways a family can fulfill sweat equity in addition to actually constructing its own house.

Examples include:

·        Providing food for volunteers at the construction site.

·        Carrying materials to the construction site.

·        Digging the foundation and pouring concrete.

·        Helping out in the affiliate office, warehouse, or bargain store.

·        Helping with fundraising events.

·        Attending affiliate events that raise awareness about and/or raise funds for Habitat for Humanity.

What house designs does Habitat for Humanity use?

The affiliate uses several different house plans which follow Habitat for Humanity International’s guidelines.  Some affiliates allow homeowners to make minor pre-approved changes.

The mortgage includes all costs of building the house. Habitat does not give money to the homeowner.

The affiliate uses appropriate technology to build simple, decent, affordable houses.  This means that the affiliate uses local knowledge to build houses with materials that are available locally and uses building methods that are easy to learn.

Where does the money from house payments go?

After the house is built, the homeowner family signs a contract.  The family agrees to pay back the cost of the house in regular payments.  House payments go back into the local affiliate’s Revolving Fund for Humanity and are used for the construction of more houses.

What do stewardship and tithing mean?

Stewardship is the careful management of all resources entrusted to us by God.  Each person involved with Habitat for Humanity has a special responsibility to use money and resources wisely.

The main source of Habitat for Humanity’s funds is donations given to us by churches, foundations and aid agencies, individuals, other organizations and businesses. 

Affiliates are expected to tithe, or send 10%, of their unrestricted cash contributions to another affiliate outside of their country.

How does Habitat for Humanity help build communities?

Habitat for Humanity International responds to people who invite and initiate interest in improving their housing conditions.  Affiliates seek partnerships with other groups and agencies to address the other needs in the community, such as income generation, healthy water, electricity, literacy, reforestation, etc.  Ideally, a local Habitat for Humanity affiliate will be just one aspect of overall community development.