Homeownership FAQs

Are homes free?

No. Habitat homes are not giveaways; buyers pay an affordable monthly mortgage.

How are buyers selected?

Families are chosen based on their level of need, ability to repay an affordable mortgage (often 30% to 80% of the area's median income), and willingness to partner with Habitat.

How does Habitat for Humanity homeownership work?

Families in need of decent, affordable housing apply for homeownership with their local Habitat for Humanity.

Each local Habitat’s family selection committee selects homeowners based on three criteria:

The applicant’s level of need.

Their willingness to partner with Habitat.

Their ability to repay a mortgage through an affordable payment plan.

Habitat’s homebuyers invest hundreds of hours of their own labor, called sweat equity, working alongside volunteers and other Habitat homeowners, in addition to paying an affordable mortgage and receiving financial education.

Habitat for Humanity follows a nondiscriminatory policy of family selection. Neither race nor religion is a factor in choosing Habitat’s homeowners.

What is the first step of buying a Habitat home?

The first step is to review our qualifications and then fill out the online application for the home you are interested in once that application is open.

If there are no available homes that you would like to apply for, you can join our mailing list to be notified when new homes become available.

What is a resale home?

A resale home is a home that a Habitat homeowner has sold back to us. We do the necessary repairs on the home, then sell it to another income-qualified homebuyer. Resale homes can become available in many parts of our service area and are typically ready for move-in sooner than new construction.

What is Willingness to Partner?

Willingness to Partner is our homebuyers’ contribution to the building of their community and furthering of Habitat’s vision – a world where everyone has a decent place to live – through participation in volunteer opportunities.

These opportunities can be completed in a variety of ways. Examples include working at the Habitat construction sites or stores, helping with Habitat or partner events, participating in a speaking opportunity or video, or by working in our office.

What is a pre-approval letter?

A pre-approval letter is a document from a lender that specifies you have been approved for a mortgage of a certain amount. Getting a pre-approval letter is a requirement to purchase the home, but this does not need to be done until after applying with Habitat. Our team will let you know when you need to get a pre-approval letter.

What kind of homes does Habitat build?

Habitat builds a wide range of homes, including condominiums, duplexes, multiplexes, and DADUs. Home sizes range from studios to 4-bedroom homes. A stove, refrigerator, washer, dryer, and dishwasher are provided with all homes.

Do applicants get to pick the location or design of the home?

Habitat does not build custom homes. The location of the homes depends on where Habitat is able to acquire land.

Will a credit check be conducted?

Yes, if we determine an applicant is otherwise eligible for our program, Habitat will run a credit check. There is technically no minimum credit score required to qualify for our program, but you do need to have a credit history, have no active credit disputes, meet our debt-to-income ratio requirements, and show a history of on-time payments. For more information on our requirements, please go here.

How are applicants selected for homes?

If you are determined to be financially eligible based on your completed application, you will have a meeting with our selection team. This meeting will give you the opportunity to learn more about our program, and Habitat the opportunity to learn more about you. Final selection will be based on the extent to which applicants demonstrate the following:

• Ability to pay – Applicants must demonstrate that they can afford the home’s mortgage payment without being cost-burdened. For more information on Ability to Pay, please see our qualifications.
• Connection to community – Utilizing resources in the development neighborhood, living or working in the development neighborhood, or having family that has previously lived or currently lives in the development neighborhood.
• Willingness to partner – Homebuyers contribute to the building of their community and the furthering of Habitat’s vision, a world where everyone has a decent place to live, through participation in volunteer opportunities. Applicants can demonstrate additional willingness to partner by attending an info or application session hosted by Habitat staff, and by demonstrating timely communication with Habitat staff during the application process.

If approved, how long will it take before I purchase my Habitat Home?

For new construction, we do our best to select homebuyers when the homes are approximately 6 months from being move-in ready. Due to the unpredictability of the construction industry, we can’t guarantee that it will be exactly 6 months, but we keep homebuyers updated on the timeline as we move through the construction process.

For resale homes, it depends on the repairs that are needed, but they are usually ready within weeks or months.

Will I be able to sell my house?

Yes, but there are resale restrictions on all of our properties. If a Habitat homeowner wishes to sell the home to another homebuyer, that homebuyer must be income-qualified according to Habitat’s qualifications. Otherwise, the Habitat homeowner can always sell the home back to Habitat.

The type of resale restrictions can vary, so we recommend that all Habitat homeowners contact our Homeowner Services team at (540) 891-4401 if they want to sell their Habitat home.