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Homeownership

Application FAQ

How Do I Qualify?

Habitat for Humanity does not give away homes. We partner with prospective homeowners, the community, corporate donors, and volunteers to offer low-income families a hand up, not a hand out. The selection process involves the assessment of all applicants, and evaluation of their compliance to basic established criteria.

Habitat for Humanity is open to people from all ethnic and religious backgrounds.

Applications are assessed according to three criteria:

  1. Need
    Does your current house fit your physical needs?
    Is the wiring/plumbing/ventilation adequate?
    Is it affordable?
  2. Ability to pay
    Do you have steady, reliable income?
    Do you have a good work history?
  3. Willingness to Partner with Habitat for Humanity
    Would you like to improve your family's current situation?
    How will you contribute "sweat equity"?
    Is helping in your community important to you?

Total family income (before deductions) must be lower than the poverty line.

What Will It Cost?

Saving a down payment and paying interest on a mortgage are prime reasons that homeownership is out of reach for many low income families. With a Habitat home, "Sweat Equity" - which has no actual monetary value - is a requirement indicating the commitment of our selected partner family to the Habitat philosophy. The family assists in the construction of their own home and those of others, earning Sweat Equity to total 500 hours. You and members of your immediate family who will be living in the house are eligible to contribute to Sweat Equity.

You can begin contributing Sweat Equity when you have been selected as a "Qualified Habitat Family" and have signed a partnership agreement with Habitat for Humanity of Northumberland. Partner families begin to accumulate sweat equity as soon as they become partners. This arrangement reduces cost, increases pride in ownership and fosters positive relationships in the community.

Habitat for Humanity allows homeowners to make monthly payments on a no-interest mortgage over an average of 20 years. The mortgage is geared to their income. Once the house is completed, an appraisal to assess the fair market value of the property is done. The local Habitat Affiliate will hold the First and Second Mortgages on the property. The first mortgage is about 75% to 80% of the property value. The second mortgage is for the remainder. The homeowner must pay the amount of the first mortgage within a certain period, usually 20 to 25 years. The second mortgage remains on the property and is repaid when the home is refinanced or sold by the partner family. Habitat for Humanitys retains first option to buy back the house should the homeowner decide to move.

The homeowner is responsible for performing proper maintenance on the house, both inside and outside. They are also responsible for housing costs such as insurance, taxes, gas, heat, hydro and water. Overall, no more than 25% of the family's annual income may be spent on the repayment of the Habitat mortgage.

What Will My New Home Be Like?

Habitat for Humanity builds simple and decent houses. New homes are constructed from scratch, or existing homes can be renovated, with additions if necessary. Here in Northumberland, our build is continuous, year round.

Habitat for Humanity Northumberland receives various national and local donations of building materials and services. As well, in order to save money, products or services may be standardized among houses. All construction will use generally accepted practices in the industry and will be in accordance with local and provincial building codes, ordinances and standards.

Houses typically have three or four bedrooms, a living room, kitchen/dining area and one bathroom. Neither garages nor carports are provided with a typical home. The size of house (finished area) will not exceed the following limits unless special circumstances warrant increases and an increase is approved by the Board of Directors.

Three bedroom - 1050 square feet
Four bedroom - 1150 square feet
Five bedroom - 1250 square feet

Habitat for Humanity of Northumberland will strive to build a sound house, incorporating the highest quality workmanship and deliver the completed house to the family.

Who Do I Contact?

If you would like to apply for a home, please call our office at 905-373-4663, or send us an email at info@habitatnorthumberland.ca.