Q: How does Habitat work?

A: Through volunteer labor and donations of money and materials, Habitat builds simple, decent, affordable houses with the help of the homeowner (partner) families and volunteers. Habitat houses are sold to partner families at no profit, financed with affordable, no-interest loans. The homeowners’ monthly mortgage payments are used to support Habitat’s programs. Habitat is not a giveaway program. In addition to a down payment and the monthly mortgage payments, homeowners invest hundreds of hours of their own labor — sweat equity – into building their Habitat house and the houses of others.

Q: How many Habitat houses are available?

A: West Orange Habitat currently builds about two homes per year.

Q: Does Habitat for Humanity give free houses to poor people?

A: Habitat for Humanity homes are a hand up, not a handout.  Houses are not given to anyone. Habitat for Humanity builds houses with those in need and then sells the houses to homeowner partners. Because of Habitat’s no-profit, no-interest loans, and because homes are built principally by volunteers and future homeowners, mortgage payments can be kept reasonable to those unable to obtain conventional financing. Habitat homeowners typically have incomes that are 30-50% of the median income in the area. They are required to invest hundreds of hours of “sweat equity” towards their home.

Q: How does a low income homeowner qualify for financing?

A: Habitat for Humanity sells the home and finances the loan at 0% over a period of 20-25 years. Banks or other lending institutions are not involved in the transaction.

Q: Does Habitat for Humanity build homes on an equal opportunity basis?

A: Habitat for Humanity builds homes for people in need without regard to race, religion, or gender. Three criteria drive the family selection process: Need, willingness to partner with Habitat, and an ability to repay a principle mortgage.

Q: What if I am physically unable to work on the construction of my home?

A: The required "sweat equity" hours can be performed by the homeowner as well as immediate family and friends.  Homeowners also receive credits towards their hours by attending educational workshops and even get credit for the good grades of their children.

Q: Are Habitat for Humanity homeowners all on welfare?

A: Habitat for Humanity works in good faith with families who qualify as “very-low” and “low” income by the U.S. Department of Housing and Urban Development standards. While some do receive public assistance, the overwhelming majority of Habitat homeowners have a consistent employment history and continue to be employed.

Q: Do Habitat for Humanity homes lower neighborhood property values?

A: Studies of low-cost housing show that affordable housing has no adverse effect on other neighborhood property values. In fact, Habitat for Humanity believes its approach to affordable housing can greatly improve neighborhoods and communities by strengthening community spirit, increasing the tax base, and building better citizenship through the cooperative efforts involved in Habitat construction.

Q: Do Habitat for Humanity homes allow people to move from poverty to fancy new homes?

A: Any newly built home is going to provide a dramatic improvement in the living conditions for families that have been living in substandard housing. However, Habitat homes are not extravagant by any standard. Habitat’s philosophy is to build simple, decent, and safe affordable homes. All homes are either two or three bedrooms with one or two bathrooms. Under design criteria approved by the Board of Directors, homes must include energy efficient features.

Q: Can Habitat homeowners sell their homes and make a large profit because of the original cost?
A: Habitat protects the equity in the home through restrictive mortgage documents and deed restrictions. Through these documents the dream of homeownership is made possible, while a windfall profit to the homeowner if resale becomes necessary is restricted. In essence, a Habitat homeowner does not realize the full equity of the home until the mortgage is paid off in a 20-25 year time period. Through these restrictions, Habitat is able to sustain affordability of our homes.