How Habitat works

A Hand Up. Habitat is not a hand-out but a “hand-up” program. Prospective Habitat homeowners are selected based on their level of need, their willingness to invest their own effort, often termed "sweat equity", to help build their own home and community, and their willingness to repay an affordable, no-profit loan. Working hand-in-hand with experienced staff and volunteers, these home partners contribute their efforts and build their own community together.

The Revolving Fund. Home partner families buy their homes through affordable, no-profit loans sourced from Habitat and its donors over a period of up to seven years. Monthly payments go into a revolving fund to be used to build future Habitat homes. This Revolving Fund for Humanity is the cornerstone of Habitat’s success--money is recycled or circulated back to fund the construction of more houses.  

Building Homes, Building Lives. Habitat adopts a model of incremental housing, which helps families renovate, repair or add on to their homes at a pace that is comfortable and affordable to the family. In addition, Habitat provides a series of financial education trainings and income generating programs aimed to increase community capacity.