How is this a Hand up, not a Hand out?

Habitat houses are sold to families, not given to them free of charge. In addition, families help to build their own home.

By building homes at low cost, requiring very little or no down payment, and not charging interest on the mortgage, Habitat for Humanity is able to provide an opportunity, or a "hand up", for families that would not otherwise qualify for a conventional mortgage to buy a home.

How does this program benefit families and communities?

Over time, a families' equity in their home increases. Habitat families also often see an improvement in their financial situation since the percentage of their income being spent on housing remains at 30%. Prior to purchasing a Habitat home many of these families are spending more than 50% of their income on rent.
A safe, healthy living environment contributes to the positive growth and development of children. Habitat has recorded many examples of children within Habitat families becoming healthier, completing a post-secondary education and establishing successful careers.
Communities benefit as former renters become homeowners who contribute to the tax base. Habitat build projects also offer an opportunity for community members, of all walks of life, to come together and work side by side in a meaningful way.
As the poverty cycle is broken, and a family's financial situation improves, their dependence on local social services is decreased. In addition, pride of ownership leads to a renewed sense of confidence, and along with their stable, long-term housing arrangement, they become long-term contributors to the community and the local economy.

How are Homes built?

Through volunteer labour, efficient management and tax-deductible donations of money and materials, Habitat builds simple, decent houses with the help of the homeowner. Habitat houses follow standardized design criteria that maintain the "simple and decent" archetype.

Most Habitat projects are single dwellings or semi-detached homes, but Habitat for Humanity is expanding its build projects to include restoration and refurbishments, condominiums and town home style projects.

How does Habitat acquire land?

Acquiring affordable land has been one of Habitat for Humanity's greatest challenges. Habitat seeks the assistance of governments at all levels in acquiring suitable donated or cost-reduced land. Habitat also relies on individual donors for land donations. In many cases affiliates must purchase land.

What do Families contribute?

In addition to mortgage payments, each homeowner invests hundreds of hours of their time to assist in the building of their home.  In return, Habitat homeowners are given the unique opportunity to buy a home through an interest-free mortgage. In this way they gain substantial equity they would not have if renting. They also acquire a safe, affordable place to live and the pride of ownership.

Who Qualifies?

The three criteria to qualify for a Habitat home are
1) need for affordable housing
2) ability to repay a Habitat mortgage
3) willingness to partner with Habitat.

Need for affordable housing is defined by a family income that is below the government-set Low Income Cut-Off (poverty line) for their particular region, and existing living conditions that are inadequate in terms of structure, cost, safety or size. The ratio of shelter expense to total income is also factored.

Ability to repay a Habitat mortgage requires that the family has a stable income sufficient to cover the monthly mortgage payments and other expenses that come with home ownership.
Homeowners must demonstrate a willingness to partner with Habitat by contributing 500 hours of volunteer labor ("sweat equity") towards the building of their home.

How are Families Chosen?

Families are chosen on the basis of the above criteria. Family selection occurs at the local affiliate by way of an application process.  The Family Selection Committee, composed of all volunteers, meets with qualified applicants and determines their eligibility for the next available home.