Homeownership

How Does Habitat Homeownership Work?

Habitat offers homeownership to hardworking families who may otherwise be unable to purchase a home of their own. Habitat homeowners purchase their home directly from Habitat through a zero-interest, 20-year loan.

A typical mortgage payment, including taxes and homeowner's insurance, is only $450. Habitat homeowners build equity through owning their own home. All Habitat homeowners are required to invest 325 hours of sweat equity during the construction of their home and the homes of other Habitat families. In this way, neighbors meet neighbors long before they move in and develop firm and cooperative friendships. These trusted relationships are beneficial as families come together to make decisions that strengthen their communities through their homeowner associations. Homeowners' monthly mortgage payments are used to build more Habitat homes!

How Can I Qualify?

Applicants must have one of the following housing needs:

Substandard – structurally unsound or dilapidated housing; broken plumbing; faulty wiring; poor heating; leaking roof; etc.
Cost-Burdened – rental payments are 33% or more of your total income.
Overcrowded – adult and child share a bedroom; more than two children share a bedroom; two children of opposite sexes share a bedroom.

Applicants must be able to meet the following requirements:

Live or work in Orange County for at least one year
Demonstrate stable income for the past two years
Afford a monthly mortgage payment of $550-$600 and one-time closing costs of $1700.
Be unable to qualify for a conventional mortgage.
Earn 60% or less than the area median income.
Have no unpaid judgments nor have wages garnished for bankruptcy. Collections must be less than $1000.
Be willing to perform 325 hours of sweat equity, partnering with Habitat to help build your home and other Habitat homes.

Where Do I Begin?