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Frequently Asked Questions
How Habitat for Humanity works:
- Every Habitat house built is paid for in two ways; First, through hundreds of hours
of "sweat equity" by the selected homeowner family; and second, through
their monthly mortgage payments.
- Habitat builds modest-size houses, about 1,200 square feet. The monthly no-profit,
no-interest mortgage payment is low - typically around $325 per month (includes
taxes and insurance) for an average 20 years. House payments revert back to
a "Fund for Humanity" so additional houses can be built.
- Applications are considered on the basis of need, ability to repay and willingness to partner
with Habitat. Habitat does not discriminate on the basis of race, color, creed,
or marital status.
- Habitat for Humanity is a non-profit housing ministry based on Christian principles.
We welcome those of any faith - or no faith - to join in the work of eliminating
poverty housing from Hancock County.
Who does Habitat serve?
Hancock County Habitat serves hard-working, low-income families who are currently living in sub-standard and/or overcrowded conditions, meet Habitat homeownership requirements and would no be served by traditional lending agencies. We target families who earn an income below the median income of our community.
What does Habitat do for our community?
The most visible benefit to Hancock County is the physical change that takes place in the neighborhoods where Habitat homes are built. Vacant lots are replaced by new homes where families live surrounded by well-kept yards. Less visible is the economic impact of a Habitat home. The new homeowner begins to pay real estate taxes on his/her ptoperty once they move in. For example, a vacant lot contributes as little as $25 yearly in taxes, while a Habitat home, depending on its value, can contribute as much as $3000.
Where does Habitat build?
Hancock Habitat builds only in Hancock County. We have built homes in Gouldsboro, Bucksport, Sullivan, Sedgewick, Bernard, Brooklin, Bar Harbor, Seal Harbor, Ellsworth, and Lamoine. Finding suitable building lots is growing increasingly more difficult in the Hancock County area and we are continually looking for affordable sites.
How does Habitat decide who gets a house?
Hancock County Habitat’s Family Selection Committee carefully screens applicants. Families are chosen on the basis of need, ability to pay an interest-free mortgage for 20 to 30 years and willingness to provide 400 hours of sweat equity. Additional requirements are listed in our Family Selection area of the website.
Are Habitat houses free?
No. Habitat is a "hand up", not a handout. As an investment in their homes, our partner families agree to provide 200 hours of sweat equity. This includes working on their own home or other Habitat homes and attending workshops on subjects like home and yard maintenance and budgeting. Each family has a mortgage that is repaid without interest over 20 to 30 years. Monthly payments, which include taxes, run on average $550 per month. Each house is appraised prior to closing, and the difference between the first mortgage and the appraised value becomes a silent second note, which is forgiven at the rate of 5% yearly after the first 20 years of payments. If the family stays in the home 10 years, this second note is never repaid in cash. The home is fully owned by the family at the end of the mortgage.
Do Habitat families have to make a down payment on their homes?
No cash down payment is required. Recipients contribute 200 hours of sweat equity in service to Hancock County.
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