How Long Do Habitat for Humanity Homeowners Typically Stay in Their Homes?

Homeownership through Habitat for Humanity is often seen as a path to stable, affordable housing. However, many people are unsure about how long they might stay in their new homes. This article deciphers the common patterns and provide insight into this question.

Fundamentals of Habitat for Humanity Homeownership

Important to note, when a person 'receives' a Habitat for Humanity home, they are actually buying it. This purchase involves a mortgage, and the house is secured with a title similar to any other real estate investment. The homeowner is responsible for paying off the mortgage just as any other homeowner would.

Payment and Equity

In the initial years, homeowners typically do not gain vast equity in their Habitat for Humanity homes. Some affiliates, however, offer down payment assistance benefits that can be forgiven after a certain period, often 10 years, indicating a strategy to help homeowners build financial stability over time.

Owner Default and Home Sale

Due to various life circumstances, some homeowners might face financial challenges and have to default on their mortgages. Although the rate of such defaults has reportedly decreased since the pre-pandemic era, around 1-2% of mortgages default annually. For those who do face financial difficulties, Habitat for Humanity retains the right of first refusal to purchase the home.

Life Circumstances and Long-Term Commitment

Likely, most Habitat homeowner partners eventually pay off their mortgages, which normally takes between 20 to 30 years. Frequent life changes such as job moves, family needs, or health issues may also lead to homeowners moving out. However, given the community nature of Habitat projects, many homeowners aim to stay in their homes as long as possible.

Typical Duration of Stay in a Habitat for Humanity Home

Based on my experience over the past 15 years, the majority of Habitat for Humanity homeowners tend to keep their homes until they are paid off. Afterward, many pass the homes on to family members. Occasional job or family-related moves do occur, but the commitment to the home and community often leads to long-term residency.

Conclusion

The duration of residence in a Habitat for Humanity home varies based on individual circumstances and life events. The program's dedication to long-term stability and affordability contributes largely to the enduring nature of these homeownership arrangements, encouraging families to stay in their homes for many years, sometimes up to two decades or even longer.