What Is The Habitat Model?
An affordable home with an affordable mortgage builds strong and stable families. Strong and stable families build strong and stable communities.
Housatonic Habitat homeowners are building lives where the ratio of what they spend on housing is less than the regional model. They spend less...live in a better home...and can stay in their homes for decades. It's a model that is simple yet successful.
Homes are sold at costs that are well below market value. The typical construction cost of a Habitat home is approximately one-third less than the current market value. Think of it as the construction benefit.
Since Habitat underwrites a 0% mortgage for 30 years, there is a financial benefit, too. This benefit exceeds the cost of the home. It is the combination of buying a house below market value combined with the financial benefit that results in a total cost savings that is nearly three times the initial cost of the home. That financial benefit from an interest-free mortgage translates into a financial savings of $200,000 to $300,000 over the life of the 30 year mortgage alone.
In addition, the financial benefit contributes to low and stable mortgage payments which means that many Habitat homeowners now spend far less than they did as renters.