Habitat affiliates help homeowners build equity by keeping the cost of homeownership affordable for low-income families so that homeowners can begin to accrue equity immediately. Habitat is committed to ensuring mortgage payments consume no more than 30% of a homeowner’s income and meets this goal by offering financial packages composed of low- or zero-interest loans and forgivable loans.
Homeownership can transform lives. It creates long-lasting and life-changing impact on families and communities, from providing a source of wealth and asset-building to influencing health and educational outcomes and contributing to positive community development. The first step in bringing homeownership to more families, however, is to understand who currently has access to homeownership and what factors play a role. Click below to learn more.
Improving affordable homeownership leads to numerous outcomes that extend beyond the house, such as greater economic stability, access to quality education, increased civic and social engagement, better health, and a reduced environmental footprint. Families can prosper with greater access to decent, affordable housing. Click below to learn more.
Overall, homeownership promotes wealth building by acting as a forced savings mechanism and through home value appreciation. Homeowners make monthly payments that increase their equity in their homes by paying down the principal balance of their mortgage. Home value appreciation also helps homeowners build wealth by enabling them to realize greater proceeds if they sell the home or borrow against the additional equity. In addition, owning a home promotes intergenerational homeownership and wealth building. Children of homeowners transition to homeownership earlier — lengthening the period over which they can accumulate wealth — and have homeownership rates 25 percentage points higher than the rate of children of renters. Click below to learn more.
Habitat for Humanity makes tremendous impact on the lives of homeowners. Our work impacts health, environmental and educational outcomes; civic and social engagement; the financial stability of Habitat families; and local economies.