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Habitat for Humanity is a non-profit organization that provides assistance to low-income first-time homebuyers. If you meet their criteria, they will sell you a house at no profit and provide you with an interest-free mortgage. Their generosity is made possible with the help of numerous donors and volunteers who help build the house for you. However, the program does come with certain restrictions.

For one, you have to be on a low-income to qualify for a Habitat home. Note that Habitat for Humanity income guidelines tend to be more stringent than those of governmental first-time homebuyer programs. For example, in most areas, the maximum income for a two-member household is around $30,000 whereas some government programs have thresholds as high as $50,000 in certain areas. However, if you do qualify for a Habitat home, the savings will almost certainly be much greater than under any government program alone. In general, with Habit for Humanity, the cost of both the home and the loan to finance the purchase will be lower. In addition, you may still be able to take advantage of certain government tax credits and rebates on top of that.

As you might expect, the Habitat for Humanity program is extremely popular among first-time homebuyers on low incomes. Given the high demand and the limited supply of Habitat homes, the selection process is quite rigorous in order to ensure that only the most qualified candidates are accepted into the program. The process includes a review of your work history, credit history, family size, and economic need. You also have to show a willingness to become a full partner with Habitat for Humanity. You are expected to put several hundred hours of work, or “sweat equity”, into your own home or the home of another Habitat buyer within a year of signing the partnership agreement.

Habitat for Humanity has local chapters across the country. Each chapter has its own selection criteria and application process. Click here to find a local chapter near you. You can view additional details and download an application from the chapter website.

Photo Credit: First Baptist Church Nashville

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