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Building homes. Building hope.

How Habitat Homeownership Works

Monadnock Habitat for Humanity (MHFH) partners with local families to build and purchase safe, affordable homes.Partner Families buy their home through a zero-interest mortgage, typically over 30 years. Homes are kept affordable thanks to volunteer labor, donated materials and services, and ongoing community fundraising.

Partner Families are selected through a fair and nondiscriminatory process. MHFH does not discriminate based on race, color, religion, sex, sexual orientation, national origin, ancestry, age, physical or mental disability, or familial status.

To be eligible, applicants must:
  • Be a legal U.S. resident

Applicants must live or work in one of the following towns:
    Alstead, Chesterfield, Dublin, Fitzwilliam, Gilsum, Greenfield, Hancock, Harrisville, Hinsdale, Jaffrey, Keene, Marlborough, Nelson, New Ipswich, Peterborough, Richmond, Rindge, Roxbury, Sharon, Sullivan, Surry, Swanzey, Temple, Troy, Walpole, Westmoreland, and Winchester.

All applications are individually reviewed by MHFH’s volunteer Family Selection Committee using guidelines established by Habitat for Humanity International. These guidelines help inform decisions but are not absolute.

You may apply at any time. If pre-qualified, applicants are placed on a waitlist and considered when construction begins on the next home.

Housing Challenges We Consider

In the Habitat program, “need” means that your current housing situation is unsafe, unstable, or unaffordable. This may include one or more of the following:

  • Living in overcrowded conditions or unsafe environments
  • Staying with relatives or friends, or living in temporary housing
  • Needing accessibility features for a household member with a disability
  • Being unable to qualify for a conventional mortgage on a market-rate home

As part of the pre-qualification process, MHFH volunteers will conduct a home visit. Housing need is evaluated relative to other applicants as part of the overall selection process.

What It Means to Be a Partner Family

Becoming a Habitat Partner Family means being an active participant in the process. This commitment includes both time and learning.

Sweat Equity
Partner Families, along with friends and family, contribute at least 300 hours toward building the home and supporting Habitat’s work. Activities are matched to individual abilities and may include tasks such as:

  • Partner Families, along with friends and family, contribute at least 300 hours toward building the home and supporting Habitat’s work. Activities are matched to individual abilities and may include tasks such as:
  • Assisting skilled tradespeople by gathering tools or materials
  • Painting, clean-up, or carrying supplies
  • Helping with volunteer sign-ups or events

Participation in other MHFH volunteer activities and events also counts toward sweat equity hours.

Coaching & Financial Preparation

Partner Families commit to learning the skills needed for successful homeownership. Eligible applicants must:

  • Complete MHFH’s online Financial Literacy Training Program
  • Work with a Family Relations representative to create and maintain a 12-month household budget

This support is designed to help families feel confident, prepared, and set up for long-term success as homeowners.

Financial Guidelines

To qualify for a Habitat home, applicants must meet the following financial requirements:

Requirements

Income
Total household income must fall between 60% and 80% of the Area Median Family Income, as reported by the U.S. Department of Housing and Urban Development (HUD).

  • Family of 1: at least $44,940
  • Family of 2: at least $51,360
  • Family of 3: at least $57,780
  • Family of 4: at least $64,200
  • Family of 5: at least $69,336
  • Family of 6: at least $74,472

 

Affordability

  • Annual debt-to-income ratio must be no more than 40%
  • Estimated monthly mortgage payment (including principal, property taxes, and insurance) must not exceed 30% of total household income

Down Payment & Closing Costs

  • A $1,000 down payment is required if approved for an MHFH mortgage
  • Families must also save toward additional mortgage closing costs

Habitat Mortgage

When construction begins on a new home, pre-qualified families on the waitlist may be invited to apply for a Monadnock Habitat for Humanity (MHFH) mortgage.
If invited to apply, the household will be contacted by MHFH’s Licensed Mortgage Originator. Each adult household member will complete a background review, including:
      Identity verification | Credit check | Criminal Background check | Sex Offender Registry check | Income verification

Mortgage Structure

  • The mortgage principal is based on the total construction cost of the home, plus a 10% administrative fee
  • Volunteer labor, grants, and donated materials or services reduce the overall build cost
  • Mortgages are typically written for 30 years
  • Mortgages are interest-free


Monthly Payments

  • Monthly payments include principal, property taxes, and homeowners insurance
  • Habitat mortgages are serviced through a local bank, which escrows and pays property taxes and insurance on your behalf
  • Late fees may apply if payments are made after the grace period


Payment Changes & Default

  • Monthly payments may increase if property taxes or insurance costs rise
  • The amount applied to the principal will not change
  • Foreclosure may be pursued for payment defaults exceeding 90 days

Silent Mortgage
A second mortgage, called a silent mortgage, is placed on the home for the difference between the appraised value of the house and the amount of the primary mortgage. This mortgage is held by Monadnock Habitat for Humanity (MHFH).

  • No monthly payments are required on the silent mortgage


Profit Sharing
A Profit Sharing Agreement is also executed between MHFH and the Partner Family. This agreement applies to the profit from the sale of the home, defined as the difference between the selling price and the original appraised value.
Profits are shared on a sliding scale based on how long you have owned the home:

  • 0–10 years of ownership: MHFH receives 100% of the profits
  • 10–20 years of ownership: MHFH receives 60%, you receive 40%
  • 20–25 years of ownership: MHFH receives 10%, you receive 90%
  • Over 25 years of ownership: You receive 100% of the profits


This structure helps keep Habitat homes affordable for future families while still allowing homeowners to build equity over time.

Application Form

If you’ve reviewed the qualifications above and believe you meet the basic criteria, we encourage you to apply for the MHFH Homeownership Program.

Find Out if You Qualify

Once your application is submitted, the Family Selection Committee will review all completed forms and required documents to determine eligibility. Incomplete applications or missing materials may delay the review process.

Pre-qualification is typically determined within one month Applicants who are pre-qualified must then:

  • Complete the Financial Literacy Training Program
  • Work with an MHFH representative to develop a household budget

After these steps are completed, pre-qualified applicants are placed on the waitlist for consideration when construction begins on the next home.

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Contact

PO Box 21
Keene, NH 03431
603-357-8474

Monadnock Habitat for Humanity does not discriminate because of race, color, religion, sex, handicap, familial status, sexual orientation, age, gender identity, or national origin. © 2023 Monadnock Habitat for Humanity – All Rights Reserved. MHFH is a tax-exempt 501(c)(3) non-profit organization. Tax ID Number 02-0446677

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