Habitat For Humanity of Peconic
Family Selection
Habitat for Humanity (HFH) builds houses in partnership with qualifying families, using as much donated material and labor as possible. HFH then sells the houses at no interest and no profit, making them affordable for low-income families. The monthly payments that are made go toward the construction of other Habitat houses.
Who qualifies for a Habitat house?
Habitat homeowners are carefully selected on the basis of their need for a house, their ability to become partners in its construction and their ability to repay the loan. HFH also considers problems with current housing (such as overcrowding, exorbitant rent and structural defects); and a family’s willingness to put in 500 hours sweat equity on their home. Families are encouraged to have friends and relatives assist them by working some of these hours.
How much does a Habitat house cost?
Payments vary depending on the home. But typically the monthly payment on a 20-year first mortgage would be about $1,000, which includes principal plus escrow for taxes and insurance. Payments will not exceed 35 percent of the family’s income. A 15-year second mortgage -- covering the difference between the cost of the house and its fair market value at time of construction -- is also taken out on the home. After a family is in its home for five years, each payment made on its first mortgage forgives one month’s payment on the second mortgage. That means that if all payments are made over the 20-year term of the first mortgage, the second mortgage is totally forgiven and the family owns its house free and clear.
If I qualify, how long does the process take?
It can take anywhere from six to 18 months, and possibly longer, before a family can actually move into its house.
What is a family’s responsibility to Habitat?
Selected families are required to meet with HFH representatives and/or counselors before moving in to learn homeownership and budgeting skills. After moving in they are expected to make monthly mortgage payments on time and keep the house and yard well maintained. Homeowners are totally responsible for their property and their monthly utility bills.
What else should I know?
Owners may not put liens on their property. If they decide to sell their house before the mortgage is paid off, HFH gets the first opportunity to buy it. If the house is sold before the first mortgage is satisfied, the second mortgage has to be paid off and any profit made on the sale has to be shared 50-50 with HFH.
What else may Habitat require of homeowners?
Because HFH raises much of its funds in the community, homeowners occasionally may be asked to participate in events that will help publicize its work. This might include fund-raisers, newspaper or TV coverage, and photographs. Whenever this is necessary, every effort will be made to see that the experience is comfortable for the family.
If you have additional questions...
contact HFH-Peconic By phone at 631-537-1981 By mail at P.O. Box 2006, Bridgehampton, N.Y. 11932-2006 or By e-mail at info@hfhpeconic.org