Homeownership with Habitat Catawba Valley
Homeownership is more than just having a roof over your head, it’s a pathway to financial freedom, stability, and a better quality of life. At Habitat Catawba Valley, we strive to empower individuals and families to build brighter futures through affordable homeownership.
Why Choose Habitat?
Our affordable homeownership program offers:
- Improved quality of life through financial stability.
- The opportunity to build wealth through home value appreciation.
- Affordable mortgage payments tailored to fit your budget, averaging $700 per month in 2024.
- Below-market interest rates that make owning a home achievable.
How Habitat’s Program Works
Habitat Catawba Valley partners with qualified individuals and families who have a need for safe and stable housing. We build pre-planned, energy-efficient 2, 3, and 4-bedroom homes that are sold to partner families at no profit through an affordable loan.
- Mortgage payments will not exceed 30% of your monthly gross income and are recycled back into our building program to help more families.
- House payments are based on house size (determined by family size), mortgage length, and family income.
What it Takes to Qualify
Our program has three main qualifying factors:
- Need for Safe and Stable Housing
- Ability to Repay the Loan
- Willingness to Partner with Habitat Catawba Valley
How Habitat’s Program Works
Habitat Catawba Valley partners with qualified individuals and families who have a need for safe and stable housing. We build pre-planned, energy-efficient 2, 3, and 4-bedroom homes that are sold to partner families at no profit through an affordable loan.
- Mortgage payments will not exceed 30% of your monthly gross income and are recycled back into our building program to help more families.
- House payments are based on house size (determined by family size), mortgage length, and family income.
What it Takes to Qualify
Our program has three main qualifying factors:
- Need for Safe and Stable Housing
- Ability to Repay the Loan
- Willingness to Partner with Habitat Catawba Valley
Need for Safe and Stable Housing
At Habitat, we believe everyone deserves a safe, stable, and affordable place to live. Each year, we aim to help more families achieve this dream than ever before.
Ability to Repay the Loan
To ensure long-term success for our homeowners, we review:
- A Debt-to-Income (DTI) ratio below 40%, including your future mortgage payment.
- Monthly mortgage payments below 30% of your income.
- Stable income: 12-24 months of verifiable, steady income.
- A minimum income of $29,000 annually before taxes (for 2024).
Curious about where you stand? You can pull your free credit report annually at www.annualcreditreport.com to review your debts and identify any potential barriers to approval.
Willingness to Partner with Habitat Catawba Valley
We believe in building lasting relationships with our homeowners, offering advice and support when needed. This partnership begins during the application process:
- Complete 250 sweat equity hours (500 for co-applicants) before moving into your home.
- A down payment of just $700 is required at loan closing—the majority of your down payment comes from the hours you contribute.
Need for Safe and Stable Housing
At Habitat, we believe everyone deserves a safe, stable, and affordable place to live. Each year, we aim to help more families achieve this dream than ever before.
Ability to Repay the Loan
To ensure long-term success for our homeowners, we review:
- A Debt-to-Income (DTI) ratio below 40%, including your future mortgage payment.
- Monthly mortgage payments below 30% of your income.
- Stable income: 12-24 months of verifiable, steady income.
- A minimum income of $29,000 annually before taxes (for 2024).
Curious about where you stand? You can pull your free credit report annually at www.annualcreditreport.com to review your debts and identify any potential barriers to approval.
Willingness to Partner with Habitat Catawba Valley
We believe in building lasting relationships with our homeowners, offering advice and support when needed. This partnership begins during the application process:
- Complete 250 sweat equity hours (500 for co-applicants) before moving into your home.
- A down payment of just $700 is required at loan closing—the majority of your down payment comes from the hours you contribute.
Homeownership FAQs
What are sweat equity hours?
Sweat equity is the additional value of a home created as a direct result of hard work by the owner. Habitat for Humanity uses the term sweat equity to describe the amount of time a home buyer spends investing in their home, the home of another home buyer, or working to further Habitat’s mission in the community. It is not a form of payment, but an opportunity to work alongside volunteers who give their time to bring to life a family’s dream of owning a home.
Sweat equity can take many forms for partner households working with Habitat. It can mean construction work on their home or on the home for another household, cleaning up the build site, working in the Habitat ReStore, attending homeowner classes, assisting in administrative duties, or countless other ways of helping out.
How much does a Habitat house cost?
The average appraised value of a Habitat house is approximately $235,000.
If I qualify, how long does the process take?
The average time for a household to move into their home once accepted is 18-24 months, depending upon the time of year, building schedule and the household’s level of participation.
How much choice will I have about my house?
Homebuyers may choose to live in the area where Habitat is building or wait until Habitat builds somewhere else. The number of bedrooms in a Habitat house is determined by the needs of the household. Homebuyers are sometimes able to choose construction details of the house such as flooring, cabinets, countertops, and outside paint color.
How much choice will I have about my house?
Homebuyers may choose to live in the area where Habitat is building or wait until Habitat builds somewhere else. The number of bedrooms in a Habitat house is determined by the needs of the household. Homebuyers are sometimes able to choose construction details of the house such as flooring, cabinets, countertops, and outside paint color.
What will my house be like?
Habitat builds pre-planned, energy efficient homes with built-in deferred maintenance, intended to keep the costs of homeownership low. Habitat houses are likely to have vinyl flooring and include a new washer and dryer, as well as dishwasher, range, refrigerator, and microwave or range hood.
What is my responsibility?
After moving in, homeowners are expected to make monthly mortgage payments to their lender on time, to keep their house and yard well-maintained, and to be good neighbors. Mortgage payments include principal and escrow for taxes and insurance.
Why does Habitat need to publicize the homeownership process?
Habitat raises much of its funds via publicity throughout the community. Thus, homeowners will occasionally be asked, but will not be required, to participate in events that will help publicize the work of Habitat. Such events might include fundraisers, newspaper or TV coverage, and photographs, all of which are necessary to maintain support for our mission. Every effort is made to be respectful and to protect our homebuyers and their households from unwanted exposure.
Does Habitat stay involved with the homeowners once they have moved in?
Habitat stays in partnership with homeowners after closing and places a priority on working together towards successful homeownership.
What if a homeowner can’t pay their mortgage?
In the rare instance when a homeowner is unable to pay their mortgage or unwilling to cooperate with Habitat’s efforts to develop a mortgage repayment arrangement, Habitat must foreclose on the mortgage loan.
Where does Habitat get the money to build houses?
Habitat relies on homeowner mortgage payments, donations, and grant monies from individuals, churches, businesses, government agencies, and other organizations. Additional revenue comes from sales at the Habitat ReStore and from the sale of market-rate homes.
To make a financial gift, CLICK HERE
Take Your First Step Toward Homeownership
If you would like to be notified of the next application round for Habitat Catawba Valley’s homeownership program, complete the inquiry page below or call (828) 328-4663 x 104. Applications are only available during open application periods which typically occur in the first quarter of each year and additional times as needed. Once applications are received, they are reviewed by the Homeowner Selection Committee for acceptance into the homeownership program
Applicants are considered by a Homeowner Selection Committee, without discrimination of race, color, religion, gender identity, sexual orientation, handicap, familial status, national origin, or age; because all or part of income is derived from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act.
Homeownership Program Inquiry Form
Thank you for your interest in working with Habitat Catawba Valley to become a Homeowner or a Home Repairs recipient. We are not currently accepting applications. If you would like to be notified the next time we open our application process; please enter your information below to be added to our database. You will be notified the next time we are accepting applications to the program of your choice.
Please note: This is not a formal application but rather an inquiry into our homeownership program and should not be interpreted as a credit application.