Do Habitat for Humanity owners get to sell their houses?

Question

If someone buys a house through Habitat for Humanity, are they allowed to sell it and buy one on the open market? Or do they have to sell it back to Habitat?

Answer 1

They sell them where I live and they are free to use the money as they see fit. Most do not buy a different house though, they go back to section 8 housing, but with new expensive cars.

Some of them get foreclosed on because they refuse to pay property tax, which I think is crazy. Anyone loosing a FREE house because they feel entitled not to pay the property tax needs a mental health professional, but that is just my opinion.

The houses in CA are not built on government land, they are build in regular neighborhoods, usually after tearing down an older home.

Answer 2

I am a Habitat for Humanity homeowner ... and also I am a licensed Realtor.

I would suggest that you check with your local Habitat for Humanity chapter.

I was told that if we wanted to sell the house during the first
3-5 years of ownership .... that we HAD to give Habitat the
first right to buy the house back .... and ALSO, that during
the first 3-5 years we could not make ALL of any profit from
selling the house. However, after (I think) it is 5-7 years ... then we could sell the house outright ... and keep any profit.

I have been in my Habitat Home for OVER 7 years.

The other thing is .... Some Habitat Home Owners have
mortgages with Habitat and some have Land Contracts.
Some of the other Home-owners have told me that if you
have a Land Contract (and NOT a mortgage) .... you can not
get a home equity loan. (Check that out too!)

Certainly once you sell your Habitat Home .... and you meet
the income/debt requirements to secure a mortgage .... You can purchase another house on the open market.

Hope this was helpful!

Answer 3

I am a homeowner of a Habitat for Humanity house... I pay 400 dollars a month mortgage, I pay homeowners insurance, I pay property taxes. I worked, and I mean worked for a year building this house and so did my family. We have put above and beyond the required about of sweat equity in this house. I have lived here for ten years. I feel like if I need or want to move and sell this house, I should be able to, keeping any profit attained. We have made improvements to this home that came from our pocket, no habitat's. We put in a new heating/cooling unit after 7 years here because the one habitat put in wasn't new and it wasn't working properly from the beginning and had to be repaired at least once a year. We also built a large deck on the back and a larger porch on front. Habitat gets ALL of their "investments" back out of these houses. They are donating nothing. But their volunteers are awesome and work hard. They deserve a pay check. This house was in no way, shape or form "free". Anyone who thinks they are.. go get one and find out.

Answer 4

Habitat for Humanity homes can be resold, depending on the rules and regulations of the local chapter through which the home was obtained originally. Many Habitat chapters place a second 'forgiveable deed of trust' on the property which the chapter will exercise (to regain any sale equity) should the property be sold before the original mortgage is fully retired.

Rules and regulations vary by local chapter. Habitat International does not regulate as such.

Answer 5

Habitat doesn't buy houses from previous owners.

However you have to be careful and understand the purpose of Habitat...they place people in homes that otherwise would not be able to afford a home at all.

They also keep a database of anyone who has ever purchased a home...if someone loses a home to foreclosure or sells it for a quick profit (b/c there is usually alot of equity in a Habitat home), they will NOT permit you to purchase another one through their organization...they will give that chance to someone else who has never had a home and didn't abuse the opportunity.

PS: I used to volunteer for Habitat, and the houses are not built on gov't land and they DO NOT require first-right to buy where you lose all of your equity and profit...I have no idea of where the other poster got that kind of information. It's just not true.

The other poster is most likely confusing it with HUD housing...which is NOT the same thing.

Habitat is a PROGRAM to purchase a home...and once you sign on the dotted line, you own your home with the SAME RIGHTS as anyone else with no restrictions.

Answer 6

Habitat for Humanity is a rip-off. Yes, the mortgage is affordable, but once you purchase a home and want to sale it, that’s where the problem lies. You have to pay them half of what you should be gaining as a profit being the home owner. This program has so many loop holes when you want to sell your house. Why should you have to give them half of the equity you’ve gain as the home owner??? I would advise anyone to purchase through a regular 1st time home owners program…..

Answer 7

local newspaper reported that Habitat for Humanity has first right to buy, and at guaranteed price related to the amount the owners paid, on all such houses in US.

Effectively, this means that the profit of the owner is capped and any added amounts go to Habitat for Humanity.


since the houses were built with donated labor and partly donated materials, frequently on government owned land, doesn't this make sense?

Answer 8

Habitat homes are not free. You pay mortgage like any home being bought. I know because I am a Habitat Home owner.

Answer 9

I am a HFH homeowner, I pay my taxes, I don’t get anything for free and I have worked my entire life, I am in College. HFH homeowners may sell their home on the open market if HFH refuses their first right to buy the home back.

Answer 10

If you don't pay mortgage interest like the rest of us the it is only fair that when you sell, you pay back some of the capital gain back to habitat.