How Habitat for Humanity Works

A local Fund for Humanity is established by each Habitat affiliate. This fund is created from gifts and no-interest loans and provides the capital needed to build, repair, and renovate houses. Building sites and houses are donated or sold to Habitat.

Home construction is a cooperative effort involving volunteer workers from the community who work side-by-side with recipients of the houses: responsible, low-income families who would not be able to afford a conventional mortgage.

Recipients must contribute 300 hours of sweat equity, which is work on their own home and/or other Habitat homes. When their home is completed, they can purchase it at cost from Habitat, usually with a 20-year mortgage. Their payments are then channeled back into the local fund to build and renovate more houses.