Frequently Asked Questions

Who can apply for a Habitat home? 

Habitat works specifically with low and very low-income families.  A typical applicant family from Wilson County has a gross household income of approximately $18,000–32,000 per year.  We work with families of all races, religions and creeds.  The applicant(s) must have lived in Wilson County for at least 12 consecutive months prior to applying.

How is a family selected? 

A Family Selection Committee chooses each “partner family”.   The committee reviews the completed application, which includes verification of employment and income, an evaluation of expenses and debts, and a review of the applicant(s) credit report.  There are three principal requirements:

1. Need for adequate housing:  Your present home must be substandard, unsafe, unhealthy, or over-crowded.  Also, you must be unable to obtain a mortgage from a bank or other lending institution.
2. Ability to pay the mortgage:  You must have sufficient income to make monthly house payments and maintain a house, and you must have the ability to make monthly payments on time.  Before groundbreaking, Habitat will re-evaluate your ability to pay the mortgage.
3. Willingness to partner:  You must be honest in all of your dealings with Habitat, and you must be willing to work with our employees and volunteers to do all that is necessary to become a successful homeowner. 

Here are some of the things you must do:

1. Perform 500 hours of “sweat equity”.  This includes working without pay on other Habitat homes, and later on your own home.  Sweat equity can also be earned at our ReStore and through other pre-approved activities.  Special arrangements will be made for disabled homebuyers.
2. Attend various classes on home maintenance, home repair, budgeting, and other topics useful for successful homeownership.
3. Save approximately $1000.00 toward the amount due at closing for insurance, taxes, and closing costs.
4. Help Habitat with its efforts to recruit and thank volunteers.  This includes working side by side with volunteers from all races, religions, and walks of life.
5. Help Habitat with its fundraising activities. This includes going to public meetings and allowing Habitat to use information about your family in its press releases, printed information, and web site.
6. Sign a Release and Waiver releasing Habitat from all liability for injuries you or your children may sustain while doing sweat equity.
7. Keep in frequent contact with Habitat through a volunteer assigned to be your Support Advocate and notify us within one week of changes in address or phone number.
8. Be patient and flexible.  Becoming a Habitat homeowner is not a quick process.

After closing, pay the house payment every month, make any needed repairs, perform regular home maintenance, and be a good neighbor.

What other factors will the Family Selection Committee consider?

You must be old enough to sign mortgage documents, you must be a U.S. citizen or have permanent residency status, and you must meet our income guidelines.  No one in your household can be listed on a sexual offenders’ registry.  If you are married, your spouse must also apply. 

How long does it take to become a Habitat homeowner?  It depends on the build schedule and how fast Habitat can find sponsors to provide volunteers and financial support.  Usually, the application process takes about four months, preparing for the build takes about five to nine months, and construction takes about three months.  Sometimes, each step takes more time.

What does a Habitat home look like?

It is a simple, decent, wood-frame house with vinyl siding, a covered porch, insulated aluminum windows, and a driveway.  It meets Energy Star requirements.  Habitat uses all new, good quality construction materials.  The construction work is done by licensed subcontractors, many volunteers, and you -- all working together in partnership.

How much does the average family have to pay for a Habitat home?

It depends on the cost of the land, building materials, sub-contractors, permits, etc.  Habitat does not make a profit on the sale and does not charge interest, but every Habitat homeowner must make monthly mortgage payments for about 25 years.  The monthly payment (including escrow for taxes and homeowners insurance) for Habitat houses to be built in 2009 will probably be between $350 and $450.  The family enters into a zero-interest mortgage for the cost of the house.  As the payments are made, they are re-invested in building other homes.

Can the home be sold in the future?  The idea of Habitat is to build a permanent community.  Family selection is based on the premise that members of that community will wish to live in their homes permanently.  In addition to the first mortgage, the homeowner signs a second mortgage, which represents the difference between the Habitat cost and the market value of the home.  As payments are made on the first mortgage, payments are forgiven on the second mortgage.  If the house is sold, however, both mortgages are due, and Habitat will re-invest the proceeds in building other homes. The forgivable second mortgage is used to prevent a windfall profit from an early sale of the home.  The homeowner is not penalized, as their initial cost was significantly below the market value.

THANK YOU FOR YOUR INTEREST IN PARTNERING WITH HABITAT!