Future Home Owners Responsibilities/Commitments
Partnership with Habitat
Everyone dreams of owning a home. Homeownership represents a commitment to certain values: steady income, creditworthiness, neighborhood membership and long-term responsibility. Achieving your dream of is important, but also is being prepared to live it. With this in mind, partnership with Habitat is an essential part of the criteria for a Habitat home. This means the commitment of you and your family to several things:
Absolutely accurate and complete homeowner application
Real effort in performance of sweat equity
Attendance in all Habitat homeowners education classes
In return, Habitat is committed to build, with you, a quality home for you and your family in a safe neighborhood. Together we hope to help you build a foundation for success in the future.
Sweat Equity
-Sweat Equity is the time and effort that you, your family and friends give to Habitat to help build houses. It takes the place of a large down payment.
- You will need to complete a minimum of 350 hours of sweat equity.
- Applicant and co-applicant must each earn at least 100 hours and a minimum of 45 hours per calendar quarter.
-Sweat Equity is earned by:
Work at the construction site, Wednesdays or Saturdays from 8:00 AM to 3:00 PM
Special arrangements can be made in unique circumstances and will be considered
on a case by case basis.
Classes you must attend which cover:
- Introduction to Habitat
- Basic Household Budgeting
- Understanding the Closing Process
- Basics of Homeownership (Maintenance)
-Accommodations will be made for applicants with special needs.
Mortgage Loan, Value and Escrow
As a prospective Habitat homeowner, the price of your home consists of the following costs:
Cost of Land
Pro-rated cost of property infrastructure for grading, utilities, sanitary & storm
sewers
Materials and subcontractors for home construction
Habitat homes are sold at 0% interest over a 20 year loan period. As an example a typical 20 year $60,000 home loan at 6% interest would cost a total of $103,166 over the life of the mortgage. As a Habitat homeowner you would save the difference, about $43,166. The homeowners sweat equity and volunteer labor allow Habitat to sell you a home at low cost.
In addition to the cost of the home, Habitat collects Escrow costs monthly for costs which are not fixed and will likely increase yearly. Escrow costs include:
Property taxes
Homeowners Insurance
Homeowners Association Dues