Contrary to common belief, Habitat for Humanity does not “give” homes away. Homes are built with volunteer labor and donations in order to provide the homebuyer with an affordable, 0% interest mortgage. In order to purchase a Habitat home, each family must perform 250 hours of sweat equity per adult in the household, plus 100 hours per 16 and 17-year old. All Partner Families are required to continue working Sweat Equity until their own home is completed.
The criterion for participation in the Habitat program is threefold: need for housing (evidenced by overcrowding, substandard conditions, high rent, or unsafe neighborhood), ability to repay the zero interest mortgage, and willingness to partner. Qualified applicants must earn between 30 and 60% of the area’s average median income. Habitat Cabarrus has moved nearly 150 families out of substandard housing and in doing so; homeowners have amassed over four million dollars in wealth in the form of home equity.
Homes are financed in a fashion to ensure equity and affordability for the homebuyer:
- 1st Mortgage with 0% interest and is payable over 30 years.
- 2nd Forgivable Mortgage with a 0% interest. After the homebuyer has been in the home for 3 years, 10% of the 2nd mortgage is forgiven per year for each of the next ten years. Following 13 years, the 2nd mortgage is completely forgiven, thus giving the family a substantial amount of guaranteed equity in their home.
- Revenue from mortgage payments is recycled back in to operations to build more homes. Current homeowners pay it forward so that other families can work to get a new home.
Habitat Cabarrus builds approximately 6 homes per year. The affiliate has completed two subdivisions in Cabarrus County and is currently working on the completion of Magnolia Crossing; a 44-lot subdivision, located off McGill Avenue in downtown Concord. Additionally, Habitat Cabarrus is supporting the Logan Community in Concord, and the Carver Community in Kannapolis through our Neighborhood Revitalization efforts.
Still in the trial stages, Habitat Cabarrus is working on a new Tiny Home project designed specifically for people with incomes in the 20-30% range of the area median income.
*Mortgage rates refer to average estimate of a Habitat home price. Values may vary for each home buyer.
The first step to applying is to attend an information session. The next information sessions will be scheduled in early 2018.