Habitat for Humanity of Douglas County

Homeownership FAQ

Q: How does Habitat work?
A: Through volunteer labor and donations of money and materials, Habitat builds simple, decent, affordable houses with the help of the homeowner (partner) families and volunteers. Habitat houses are sold to partner families at no profit, financed with affordable, no-interest loans. The homeowners’ monthly mortgage payments are used to support Habitat’s programs. 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.

Q: How many Habitat houses are available?
A: The board of directors has set the following house production goals:

Year/Number of Homes
2008: 4
2009: 4
2010: 5
2011: 5
2012: 5
2013: 6
2014: 6
2015: 6
2016: 7
2017: 7

Q: Does Habitat for Humanity give houses to poor people?
A: Houses are not given to anyone. Habitat for Humanity builds houses with those in need and then sells the houses to homeowner partners. Because of Habitat’s no-profit, no-interest loans, and because homes are built principally by volunteers and future homeowners, mortgage payments can be kept reasonable to those unable to obtain conventional financing. Habitat homeowners typically have incomes that are 30-50% of the median income in the area. They are required to invest 200 hours of “sweat equity.”

Q: Does Habitat for Humanity build homes on an equal opportunity basis?
A: Habitat for Humanity doesn’t build homes for anyone. Habitat builds homes with people in need without regard to race, religion, or gender. Three criteria drive the family selection process: Need, commitment to partner with Habitat, and an ability to repay a principle mortgage.

Q: Are Habitat for Humanity homeowners all on welfare?
A: Habitat for Humanity works in good faith with families who qualify as “very-low” and “low” income by the U.S. Department of Housing and Urban Development standards. While some do receive public assistance, the overwhelming majority of Habitat homeowners have a consistent employment history and continue to be employed.

Q: Do Habitat for Humanity homes lower neighborhood property values?
A: Studies of low-cost housing show that affordable housing has no adverse effect on other neighborhood property values. In fact, Habitat for Humanity believes its approach to affordable housing can greatly improve neighborhoods and communities by strengthening community spirit, increasing the tax base, and building better citizenship through the cooperative efforts involved in Habitat construction.

Q: Do Habitat for Humanity homes allow people to move from poverty to fancy new homes?
A: Any newly built home is going to provide a dramatic improvement in the living conditions for families that have been living in substandard housing. However, Habitat homes are not extravagant by any standard. Habitat’s philosophy is to build simple, decent, and safe affordable homes. All homes are either three or four bedrooms with one bathroom. Under design criteria approved by the Board of Directors, homes must be energy efficient and living space cannot exceed 1,092 square feet.

Q: Can Habitat homeowners sell their homes and make a large profit because of the original cost?
A: Habitat protects the equity in the home through restrictive mortgage documents and deed restrictions. Through these documents the dream of homeownership is made possible, while a windfall profit to the homeowner if resale becomes necessary is restricted. In essence, a Habitat homeowner does not realize the full equity of the home until the mortgage is paid off in a 20-25 year time period. Through these restrictions, Habitat is able to sustain affordability of our homes.