Do Habitat families ever own their Habitat house?
Many people dream of owning their own home, but for many, that dream is a distant reality. Habitat for Humanity is on a mission to change that with the goal of helping low-income families purchase and build homes. While the majority of Habitat homes are purchased by those who do not have suitable housing, all Habitat families work towards owning their home. Here’s a look at the situation and the details regarding ownership of a Habitat home.
Housing prices continue to rise
The cost of housing is on the rise and there’s no sign of it stopping any time soon. This is especially true in major metropolitan areas, such as Dallas, where the demand for luxury properties is high and the supply of affordable homes is low.
In fact, according to Forbes, nearly half of the 43 million renter households in the U.S. are housing cost-burdened, meaning they spend more than 30% of their income on housing. The cost of home for many is simply too high, for renting and buying.
The need for affordable housing is enormous, and the long-term impact it has on homeowners and their families is unrivaled according to studies.
Habitat combats this growing need by collaborating with families to assist them in acquiring the access, skills, and financial education required to become successful homeowners.
Habitat’s role in affordable housing
Habitat for Humanity is designed to provide affordable housing and homeownership opportunities for those who may be unable to pursue the traditional route.
However, Habitat homes are not free
Families put in a lot of work to qualify for a Habitat home.
Although one of the primary qualifications is the need for better housing, homeowners are required to complete extensive homeownership courses to establish financial foundations which are designed to prepare them for the responsibility of homeownership. Additionally, Habitat families are required to participate in the building of their home through sweat equity which generally includes physical labor on the construction site where the home is being built.
Habitat families do have a mortgage. A loan officer walks them through the application and supporting documents to ensure they meet mortgage criteria and are financially prepared for the commitment. Monthly housing payments can vary family to family, but are traditionally set to 30% of the homeowners gross income.
Owning a Habitat home
There are a few times when the home is owned by Habitat itself outside of rare occasions when Habitat may own a home with the intention of donating it to a family in need. However, a majority of the time, the homes are set up with the goal of them being 100% owned by the homeowner once the mortgage is paid. Therefore, homeowners are entitled to sell their homes at any time.
Learn More About Habitat Families
To learn more about the Habitat home-building process, as well as how homeownership can help to stabilize families in need, please visit our website. We feature a wealth of information on what it takes to become a homeowner and the unique benefits that come with owning your own home. Additionally, we offer helpful resources like fact sheets that can assist you, or someone you know, in getting started on the journey to homeownership.