Habitat for Humanity FAQs

I have a question about HopeBuilders – who can I ask?
How does Habitat for Humanity work?
Does Habitat for Humanity give houses away?
What does a Habitat for Humanity house cost?
What is Sweat Equity?
How are families selected for a Habitat for Humanity home?
How are the housing projects managed?
Do you have to be a Christian to qualify for a Habitat for Humanity house?
What is the revolving fund?
How does Habitat for Humanity prevent profiteering from the sale of houses?

I have a question about HopeBuilders – who can I ask?

You can contact us to ask your question direct:
Telephone 01295 264240 extension 200
Email enquiries@habitatforhumanity.org.uk
Postal address 46 West Bar Street, Banbury OX16 9RZ

BACK TO LIST

How does Habitat for Humanity work?

Through volunteer labour and donations of money and materials, we build and rehabilitate simple, decent houses with the help of homeowner (partner) families. Habitat for Humanity houses are sold to partner families for no profit – financed with affordable loans. The homeowners' monthly mortgage payments go into a revolving fund and are used to build still more Habitat for Humanity houses.

BACK TO LIST

Does Habitat for Humanity give houses away?

No. A Habitat for Humanity home is a hand up – not a handout. We build houses in partnership with families in need. The homeowner takes on a no-profit, interest free loan for the cost of the house. In addition to the monthly repayments, homeowners invest hundreds of hours of their own labour – sweat equity – into building their Habitat for Humanity house and the houses of others.

BACK TO LIST

What does a Habitat for Humanity house cost?

Throughout the world, the cost of houses varies from as little as £950 in some developing countries to about £37,500 in Poland. In London, the average house costs £100,000. Habitat for Humanity houses are affordable for low-income families because there is no profit included in the sale price and no interest charged on the mortgage. Mortgage lengths vary from seven to 30 years.

BACK TO LIST

What is Sweat Equity?

Homepartners put in hours of unpaid labour on Habitat for Humanity projects, as a requirement of their home ownership. Sweat equity reduces the monetary cost of the house and increases the personal stake of each family member in the home.

Sweat equity helps build a partnership between the homeowner family and the volunteers and staff. It is a key principle of Habitat for Humanity and is important in building partnerships across economic, racial and national divisions. The number of sweat-equity hours required of homeowners varies widely around the world, but is usually between 300 and 1000 hours. It is safest to say that hundreds of sweat-equity hours are required of homeowners.

BACK TO LIST

How are families selected for a Habitat for Humanity home?

Families in need of decent shelter apply to local Habitat for Humanity affiliates. The affiliate's selection committee chooses homepartners based on their need, their willingness to partner with HFH and their ability to make the low cost, non-profit mortgage repayments without putting them under further financial pressure.

Read homeowner stories on the main Habitat for Humanity website.

BACK TO LIST

How are the housing projects managed?

HFH works from the grass-roots level by engaging potential homeowners in decision-making at all stages. We guide local community groups to elect a management committee for the housing project and then provide training in the following areas:

Project management
Beneficiary (home-partner) selection
Construction and maintenance
Finance and budget management
Debt repayment
Health education
Community development
Good governance

The management committee chooses the home-partners regardless of race, religion or gender in line with HFHs' equal opportunities policy. Home-partners work with HFH and the management committee to determine:

The housing solution required (renovations, upgrading or new construction)
Whether it will be carried out in stages or in one operation
How they will repay the micro-credit loan, either by saving a certain amount first or by repaying over an agreed number of years.

Home-partners can therefore balance their housing solution to their incomes in order to make it decent, yet affordable. HFH staff, volunteers, the local management committee and beneficiaries all work together on the construction of safe, decent and affordable homes and the provision of sanitation and clean water.

BACK TO LIST

Do you have to be a Christian to qualify for a Habitat for Humanity house?

While Habitat for Humanity is a faith-based organisation, every affiliate follows a nondiscriminatory policy of family selection. Race and religion (or gender or nationality) are not factors in selecting families to become Habitat for Humanity homeowners.

BACK TO LIST

What is the revolving fund?

When the homes are complete, the homepartners make affordable mortgage payments to a Habitat for Humanity revolving fund. The money in the fund is then loaned out to other low-income families in order for them to own new homes.

BACK TO LIST

How does Habitat for Humanity prevent profiteering from the sale of houses?

Each homeowner family signs a sale and purchase agreement for the cost of their house. The sale is paid for with a Habitat for Humanity mortgage, which is the amount the homeowner is required to repay. Our interest in the house is protected by a legal charge, which progressively transfers the equity of the home to the family – starting at year five of the mortgage. Habitat for Humanity's commitment to gift the equity sum may be suspended or cancelled completely if there are serious breaches of the homeowner's obligations under the mortgage.

BACK TO LIST