How does Habitat for Humanity prevent profiteering from the sale of houses?
Each homeowner family signs a sale and purchase agreement for the cost of their house. The sale is paid for with a Habitat for Humanity mortgage, which is the amount the homeowner is required to repay. Our interest in the house is protected by a legal charge, which progressively transfers the equity of the home to the family starting at year five of the mortgage. Habitat for Humanity’s commitment to gift the equity sum may be suspended or cancelled completely if there are serious breaches of the homeowner’s obligations under the mortgage.
