How Habitat homes are financed
Habitat Partner Families purchase their homes with an interest-free mortgage, funded by the donors and the labor of Partner Families and volunteers.
The interest-free first mortgage is usually between $110,000 and $130,000
The homes are usually worth $180,000 to $270,000 and that total value is covered by deferred mortgages.
For example, a home worth $200,000, with a $130,000 interest-free first mortgage would also have a deferred interest-free mortgage for $70,000, which would not be due until the family resells the home
In addition, Habitat has appreciation sharing agreements with the Partner Families. The first time a Habitat homeowner resells a house outside the family, Habitat gets half of the appreciation in value.
These mechanisms are designed to help low-income partner families become homeowners and to protect the investment in affordable housing for generations. | 
