Homeownership

No! Habitat partners with families to provide affordable mortgages. Homebuyers can expect to pay no more than 30% of their income towards their housing costs.

Habitat for Humanity of Metro Louisville offers a variety of different housing solutions. Habitat houses are sold to Habitat Homebuyers at fair market cost with an affordable first mortgage between $95,550 and 165,900 in 2023. Prices vary, but you will know more prior to signing any contract. Habitat homes are sold to our homebuyer families for no profit and are financed with an affordable mortgage. The cost of the homes may be different depending on the size of the house, taxes, and insurance. Closing costs are $2,000, which are payable on an installment basis during your time in the program.  There are no hidden fees or surprise charges.

Monthly mortgage payments vary depending on the length of the mortgage, but will not be more than 30% of a homeowner’s monthly income. Monthly mortgage payments include an escrow for homeowner’s insurance and taxes.

Applications are considered based on three main criteria:

1. Demonstrated Need, such as overcrowded conditions, unsafe housing, and financial burden of more than 30% of income spent on housing.
2. Ability to Pay a reasonable mortgage. Total cost of housing (mortgage, taxes, and insurance) cannot exceed 30% of all household income.
3. Willingness to Partner. Homebuyers must attend all workshops and scheduled meetings, complete 400 hours of sweat equity, and pay $2,000 in closing costs.

Applications are typically offered once or twice each year. Once you submit your completed application, you can expect the approval process to take at least 90 – 120 days. You will be contacted throughout the process to update you on the status of your application. Prompt attention to any requests for information is very important.

Habitat is a nonprofit organization that provides three distinct services in the homeownership process: home construction, mortgage financing and mortgage servicing. These services would normally be given by for-profit real estate businesses. Additionally, Habitat staff members serve as housing mentors, here to support our homeowners in learning the ins and outs of homeownership, getting through challenging times and celebrating successes.

By providing all of these services, Habitat is able to offer its homeowners a substantial amount of savings. We are able to open the door to homeownership for those who would not be able to buy a home through more traditional means.

Since Habitat builds homes with affordability in mind, Habitat homeowners have more limited choices about their homes than someone buying from a traditional homebuilder. While Habitat homeowners are able to choose things like the exterior paint color of the home, the homeowner will have limited choices about things such as the location of the home or the number of bedrooms and bathrooms inside the home.