How Does Habitat Work?
Habitat for Humanity of Central Iowa builds simple, decent houses that are sold to qualified families with income between 25-60% of the county median by family size. For example, in 2010 25-60% of median income for a four-person family in Story County is $18,500-$44,400. Please visit our applications page for more guidelines.
Most of the labor used to build Habitat homes is from volunteers. This volunteer labor is not included in the sale price of Habitat homes, so it decreases the price dramatically. Please visit out volunteer page for more information.
Zero-Interest, Zero-Profit Mortgages
Habitat for Humanity acts as a mortgage lender as well as a housing developer. Habitat raises all the resources needed to build a house allowing the organization to finance the sale of the home with a zero-interest mortgage, at no profit, so the monthly payments are affordable.
The sale price of a Habitat house includes:
- The value of all building materials and required skilled labor (e.g. licensed electrician), whether purchased or donated
- A value for the land and infrastructure (e.g. sewer and water hookups)
- An administrative fee of $4,000
Another important piece of Habitat’s homeownership opportunities is the involvement of the partner family (future homeowner). Habitat works with each family as partners. Partner families log 350 to 450 hours of sweat equity by doing construction on their home and taking classes in homebuyer education. Each partner family also has volunteer advocates that work with them through the Habitat process, as they get ready for the responsibility of homeownership.