FAQs

• No down payment required
• Affordable mortgage payments that are half of what a comparable house payment would be using traditional financing.
• Approximately 50% of the home price is financed with below market interest rates on a first mortgage.
• Approximately 50% of the home price is financed by Habitat with a 0% interest second mortgage with no repayment required for 10 years.
• A longer amortization period is available for the interest-bearing mortgage (25 years).
• Homeowners do not have to pay costly mortgage default insurance:
  • Example: To purchase a $300,000 home on the open market the home buyer will pay approximately $11,400 in default insurance. This cost is added to the mortgage and is subject to interest charges over the life of the mortgage. You will not have this extra cost with Habitat Homeownership.

• Where renting allows for zero equity growth, Habitat Homeownership allows homeowners to create equity each month that grows through time. Homeowners are eligible to share in market appreciation on the home; if the market value of the home increases, homeowners share in the increased equity. Like any other homeowner, they also share in market depreciation if the value of the home goes down.

• Homeowners who currently either do not have the required down payment or whose income is below the typical income required by traditional banks are the focus of Habitat Homeownership.
• Homeowners qualify for Habitat's mortgage based on several factors, including financial capacity (including credit), employment, and willingness to pay interest on the first mortgage.

The first step to buying a Habitat home is to apply.

• Each homeowner invests 500 hours volunteering for Habitat. These 500 hours are to be completed after they move into the home, and must be completed within 24 months. Homeowners then purchase their homes at fair market value from Habitat

Besides the monthly mortgage payment, homeowners are responsible and must budget for costs associated with legal fees for the mortgage transaction, appliances, home maintenance, insurance, property taxes, condo fees, and utilities.

Homeowners are responsible for regular taxes, insurance, maintenance and repairs in their homes. also responsible for damages in their home before selling back to habitat (same as any open-market mortgage)

If living in a condo, monthly condo fees are required to be paid to the Property Management Company.

Monthly fees will be charged and reconciled at the end by Habitat for exterior components that have not been repaired or maintained throughout ownership. 

There could be a few reasons why a prospective homeowner does not meet the requirements. Please remember to review our eligibility criteria to learn about the minimum requirements before filling out the eligibility questionnaire. Common reasons for not meeting the program requirements are:

• Debt to income ratio is too high, credit score is too low, and/or income is above or below the affordability limits.
• Less than 2 years of employment experience, and/or unstable employment (casual, term, or contract employment).
• Income is from self-employment.
• Income relies on social assistance programs.

Habitat sells homes to families at Fair Market Value as determined by an independent appraisal. Fair Market Value of a Habitat home will vary depending on the size, style and location of the home.

Yes. Our homeownership mortgages include an interest component. We partner with a reputable financial institution to provide a market rate on a bank mortgage of 50% of the home value, while the remaining 50% of the home value is financed by Habitat interest-free for 10 years. The first mortgage payment is half of what homeowners would pay in the open market on the same home.

• Habitat will verify employment, obtain housing and banking references, and check credit to make an assessment as to whether Habitat is an appropriate program for the applicant(s).
• Habitat wants all our homeowners to succeed. Credit checks ensure that families are ready to succeed as homeowners. Debt ratios and credit scores are standard measures of whether you can afford the home and how you manage loans/credit. The higher the credit score and lower the amount of debt, the better positioned you are for success.

Under Habitat’s current guidelines, these forms of income are not accepted for homeownership. Employment income is the only source of income eligible when qualifying for a Habitat mortgage.

No. Under Habitat’s current guidelines, this form of income does not qualify.

It is your responsibility as a homeowner to save for life’s unexpected events and emergencies so that you can pay your first mortgage payment every month.

• As a homeowner, you can make any changes to your house. But if you're going something major like renovating the basement, we encourage you to contact us so we can give you guidance, so you get the best return on your investment. 

• When you obtain a first mortgage through the financial institution, the mortgage is locked into a 5-year term. This means that your mortgage payments, including principal and interest (excluding taxes, insurance and condo fees), remain unchanged for the 5-year term.
• At the end of the 5 years, your lender will offer you a selection of rates and terms to choose from based on current market conditions. 

In the 9th year of homeownership, Habitat will contact the homeowner to discuss the next steps: repurchasing the home back or extend for a further 5 years. An additional fee for homeowners who negotiate to stay over ten years at management discretion of no more than 5% of the market value.

To prepare yourself, please contact a realtor to determine current market value so you can review your financial position and options.

Besides the monthly mortgage payment, homeowners are responsible and must budget for costs associated with legal fees for the mortgage transaction, appliances, home maintenance, insurance, property taxes, condo fees, and utilities.

Homeowners are responsible for regular taxes, insurance, maintenance and repairs in their homes. also responsible for damages in their home before selling back to habitat (same as any open-market mortgage)

If living in a condo, monthly condo fees are required to be paid to the Property Management Company.

Monthly fees will be charged and reconciled at the end by Habitat for exterior components that have not been repaired or maintained throughout ownership. 

• Market appreciation is dependent on the homeowner completing all of their required volunteer hours and financial courses.
• If you sell the home back to Habitat before your first mortgage term expires (5 years), you do not receive any of the increase in the value (home appreciation).
• If you sell the home back to Habitat between 5-8 years, you will receive 25%.
• If you sell the home back to Habitat between 8-9 years, you will receive 40%.
• If you sell the home back to Habitat after 9 years, you will receive 50%.
• There is no cap.

As a Habitat homeowner, you are not protected from market depreciation. Like any other homeowner, you are exposed to normal market conditions. 

Habitat homeowners who belong to a condominium development will pay monthly condo fees. These fees fund exterior maintenance/replacement (roofing, siding, windows, parking lots, etc), and may include snow removal and lawn maintenance depending on how the condo corporation is organized.

Possibly. Habitat considers donations of homes or land on a case-by-case basis. Please contact us to discuss the details.