Myth Buster #1: Habitat Homeowners Are Given a Free Home
This myth is simply not true! Habitat families not only purchase their home, but they also work hard to become a homeowner. Kellen Renner-Thomas, Advancement Communications and Operations Manager at the Charlottesville Habitat, explains the purchasing process:
“Through partnership with Habitat, local families are able to purchase a zero-interest home. Additionally, Habitat ensures that a family’s monthly mortgage payment is never more than 30% of their gross income. In addition to the principle, the mortgage payment includes homeowner's association dues (if applicable), property taxes, and homeowner's insurance. Through the purchasing process, Habitat homes are appraised and sold to the family at the Fair Market Value. Habitat then uses grants and donations to cover the excess in cost above what the mortgage will cover. This process ensures that families over time will realize the appreciation of home equity while maintaining the market rate of the neighborhood. In addition to purchasing their home at an affordable rate, Habitat partner families complete financial and homeownership counseling and a minimum of 200 hours of volunteer sweat equity. The process in total takes an average of 18-24 months to complete.”
Please watch Hard Work Pays Off (video below) to hear Habitat homeowner, Christian Johnson's story and read Christian Johnson, pg. 4 (additional story) to learn how the Habitat homeownership process led Christian to gain more confidence, strength and independence.