Habitat homeowner information
Looking to become a Habitat for Humanity homeowner? Below are some common questions our applicants have.
If you do not find answers to your questions below, please call us at (501) 376-4434 or send a quick email.
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homeowner FAQs
The families go through a family selection process that seeks homeowners based on their level of need, their willingness to become partners in the program through performing "sweat equity" in the building of their home, and their ability to repay the zero percent interest loans. The length of the family selection process varies depending on the availability of homes. It may be more than a year from the beginning of the selection process until the family can move into their home. Habitat follows a nondiscriminatory policy in family selection. Neither race nor religion is a factor in choosing families who receive Habitat homes.
All applicants must attend a homeowner orientation session before applying for a home. These sessions help those interested in a Habitat home to truly understand the requirements, process and timeline of homeownership before spending time and energy on an application.
Please contact Manuela Catic, Homeowner Services Coordinator, at 501.251.6757 or manuela@habitatcentralar.org to find out when the next session will be.
Habitat acts as the lender for a 20- to 30-year 0% - interest mortgage. The monthly payments that the family pays to Habitat are then used to help build additional homes for more families.
Recent homes Habitat has built and sold cost between $125,000 to $145,000. Monthly mortgage payments are approximately 33% of the family’s monthly income. This includes the principal, house insurance, and property taxes.
No. However, you must be a permanent resident to qualify.
Through our partnership with families and individuals, we equip future home buyers with the strength and self-reliance they’ll need to be successful homeowners. Families who are accepted in the Habitat partnership will be required to complete 300 sweat equity hours.
Take a look below at a few of the ways this important investment of time is made:
Work sites - Being involved in the process of building or renovating Habitat homes - including your own
ReStore - Lending a hand at a Habitat ReStore to collect, organize and sell gently-used home building and decorating supplies
Habitat retains the "Right of First Refusal" to purchase back any home in the event that a homeowner needs to sell. Habitat buys the home back at a price that shares with the homeowner the appreciation in the value of the house.
qualification guidelines
To become Habitat Homeowners, all applicants must meet the following three (3) basic criteria:
Potential homeowners must show that they have a current need for improved housing. A need for shelter can be determined by many factors such as lack of space, overcrowded housing, rental costs that are over 50% of a family's monthly income, unsafe living conditions, dangerous environment, problems with major utilities, or other general structural problems.
Purchasing a home through Habitat requires a commitment of time and energy. Habitat strives to select homeowners who will be active participants in the construction process and positive representatives of Habitat in the community. "Sweat equity" is the future homeowner's contribution of labor in the construction of their home. All selected future homeowners are required to complete 300 sweat equity hours per adult in order to move into their new home. These hours can be completed by the family working on their own home, working on the construction sites of other homes, working at the Habitat ReStore, or other Habitat for Humanity of Central Arkansas projects.
A future homeowner must have a steady source of income and they must demonstrate financial responsibility. Family income must fall within established Habitat income guidelines for the past three years.
our process
Once your application has been submitted and approved, it takes up to a year to move into your new Central Arkansas Habitat home.
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Here is the process we follow with our homeowners:
Habitat for Humanity of Central Arkansas (HFHCA) hosts orientation sessions for prospective homebuyers before opening an application period. Attendance at one sessions is mandatory before applying for a home.
The orientation session allows those interested in a Habitat home to truly understand the requirements, process and timeline of homeownership before spending time and energy on an application.
Please contact Manuela Catic, Homeowner Services Coordinator, at 501.251.6757 or manuela@habitatcentralar.org to find out when the next orientation will be.
Everyone interested in purchasing a Central Arkansas Habitat home must fully complete the application forms. Spanish application forms are available. There is no application fee charged. Once we receive your application, there are three things we review before moving on to the next step:
Income – Required employment for one year or more with the current employer
Credit check – Show any outstanding debt
Background check – Criminal background is conducted on all adult applicants
You will need to submit several other documents at this meeting, such as tax returns, paycheck stubs, driver’s license, and proof of legal residency.
Each adult family member who will be on the mortgage and/or living in the home will be required to attend an ability-to-pay meeting where financial obligations will be explained.
The Homeowner Selection Committee meets once a month to review each family in the application process that has demonstrated need, the ability to pay, and the willingness to partner with Habitat for Humanity of Central Arkansas. ​ If the reviewed applicant family passes the Homeowner Selection Committee, they will proceed to review by the Board of Directors.
The Board of Directors of Habitat for Humanity of Central Arkansas reviews each applicant for final approval. The board makes the final decision on all applicants to our program.
Once final approval is received, the family is required to attend a sweat equity and construction meeting to discuss ways in which the family can work to achieve their 300 hours of sweat equity and discuss all the components of the home. ​ The new home buyer will need to select and discuss various aspects of the house pertaining to carpet, vinyl flooring, countertops, etc.
The home buyer, along with help from friends and family, will work to complete 300 hours of sweat equity. This can be completed by volunteering on the construction site, attending workshops, and volunteering in other Habitat programs. ​ The homebuyer education course helps future Habitat homeowners understand the homebuying process and how to develop a financial plan for the future. The class is available in-person and online. It comes with a certificate of completion that must be shown to HFH of Central Arkansas.
This serves as an update to all financial documents before closing.
The homebuyer and HFH of Central Arkansas staff work together to close on the house.
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