Content=How Home Ownership Works

A Hand Up, Not A Hand Out

Home Ownership - A hand up, not a hand out.

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Habitat houses are purchased by the homeowner families. Three factors make the houses affordable to low-income people worldwide:
  • Houses are sold at no profit, with no interest charged on the mortgage
  • Homeowners and volunteers build the houses under trained supervision
  • Individuals, corporations, faith groups and others provide financial support
    • Homeowner families are chosen according to their need; their ability to repay the no-profit, no-interest mortgage; and their willingness to work in partnership with Habitat. Habitat for Humanity does not discriminate according to race, religion or ethnic group.

    Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit, financed with affordable, no-interest loans. The homeowners' monthly mortgage payments are used to build still more Habitat houses.

    Habitat is not a giveaway program. In addition to a down payment and the monthly mortgage payments, homeowners invest hundreds of hours of their own labor -- sweat equity -- into building their Habitat house and the houses of others.

    What does a Habitat house cost?

    Throughout the world, the cost of houses varies from as little as $800 in some developing countries to an average of $46,600 in the United States.

    Habitat houses are affordable for low-income families because there is no profit included in the sale price and no interest charged on the mortgage. Mortgage length varies from seven to 30 years.