Homeownership with Habitat
Our homeownership program provides a unique opportunity for those who are in need of an affordable place to call home to take an active role in the construction of and eventual purchase of their own home. When South County Habitat for Humanity (SCHH) accepts an applicant into the homeownership program they become partners with SCHH and this partnership will remain for the duration of homeownership. Accepted applicants can anticipate the program will take about 18 to 24 months from acceptance to purchasing their home.
To learn more about the homeownership program review our Introduction to Homeownership Guide found here and explore the topics below.
Introduction to our Homeownership Program
Anyone 18+ is welcome to apply for our program. South County Habitat for Humanity is an equal opportunity, fair housing provider, with broad definitions for family.
The criteria for determining eligibility for a Habitat home are: 1) Need for Housing, 2) Ability to Pay the Mortgage, and 3) Willingness to Partner with South County Habitat for Humanity. Review information under the "Qualifications" tab to learn more.
The monthly mortgage payment cannot exceed 30% of your monthly income. Further, we use Federal income guidelines to determine financial eligibility. Your total household income must be at or below 80% of the HUD median income for the town where the home is located. This amount varies based on the number of people in your household. SCHH considers all sources of legitimate and verifiable income (employment, child support, Social Security, etc.) in determining your ability to pay the mortgage. Determining financial eligibility is a complicated issue; we can help you through the process.
For more information please review the "Qualification" tab.
We only accept application during open application rounds. We open applications once we have a project fully funded and 'shovel ready' (meaning the project is fully permitted and ready to go). Application rounds are typically open for a 30-day window. Incomplete applications or applications received outside of the application round will not be considered.
To be notified of application rounds or any homeownership opportunities be sure you are on our notification list by completing our interest form found here.
South County Habitat for Humanity is a faith-based organization, however, applicants do not need to be of a particular, or any, religious’ affiliation. We are an equal opportunity, fair housing provider and do not discriminate on the basis of race, gender, family status, disability, ethnicity, religion, or any other basis protected by state or Federal law in its selection process.
You will receive written notification of the status of your application within 30-days of submitting a complete application. Applications go through a rigorous review process including a financial review, credit check, 3rd party verification, and finally Board approval. This can be a lengthy process but we will update you along the way and you can always call the office at 401.213.6711 to check on the status of your application.
We do our best to keep you informed of where you application is in the process, however, you are always welcome to call or email us to check on the status if you are unsure. You can reach us at 401.213.6711 x305 or aliyya@southcountyhabitat.org.
Yes! Many of our families have been denied for a multitude of reasons (too little income, items in collections, poor credit, etc.) that they were able to rectify, then came back to apply later on and were accepted into our program. You can apply as many times as you would like.
Sweat Equity refers to the non-monetary investment future homebuyers contribute to the construction of their home or other SCHH projects. One-adult households are required to complete 200 hours while two-adult households are required to complete 400. All hours must be complete prior to closing on the home. The full Sweat Equity procedure is available upon request.
To learn about our current Sweat Equity Guidance click here.
Many factors contribute to the construction time required to complete a house so there is no definite timeline. We generally tell applicants the process will take 18-24 months before move-in. This time allows applicants to complete their requirements, and us to build or rehabilitate the unit.
How can I help build a house if I don’t know anything about construction? Our Habitat homeowners and volunteers have never built a house before. SCHH’s construction staff and skilled volunteers will teach everything you need to know for a safe, productive, educational, and fun day on site.
A rehab is an existing home that was initially sold by Habitat and then purchased back at a later date. South County Habitat for Humanity will renovate the home and prepare for a new family. Typically, rehab homes only require minor repairs and updating before a family can move in, once they have satisfied their program requirements.
If you are purchasing a new construction, you are expected to work on your own house as much as possible. If you are purchasing a rehab home, you are expected to work on the rehab, unless the renovations are complete, then you are expected to work on other sites. Since South County Habitat for Humanity is a partnership effort you may be working on other families’ houses at least until your sweat equity is completed.
*Accommodations will be made for those with limited mobility
In order to ensure long term affordability, South County habitat for Humanity retains ownership of the land, through a ground lease agreement. With this agreement, you have most of the typical rights and responsibilities of homeownership – such as mowing the lawn, planting a garden, keeping the yard neat and tidy and paying property taxes. Lot sizes vary greatly depending on availability.
Because of the ground lease there are some restrictions in order to maintain affordability, but you can do most anything allowed by applicable ordinances, laws and codes. However, any activity requiring a building permit will require our written permission.
Homeowner Advocates are SCHH volunteers who partner with future homebuyers on their journey to homeownership, serving as a liaison between the partner family and SCHH.
Monthly mortgage payments vary but will not exceed 30% of your monthly income. Mortgage payments include a principal payment, tax and insurance escrows, a ground lease fee, and a maintenance escrow fee.
Other fees may be collected that are specific to the property.
As an affiliate of Habitat for Humanity International, South County Habitat for Humanity is a private, non-profit organization that relies on donations from individuals, churches and businesses to fund home building projects. Habitat also receives financial support in the form of Federal, state and local grants as well as private and public foundations. The ReStore is also a major fundraising source.
In some cases, under the ground lease agreement, when you wish to sell your house you are required to sell the house back to South County Habitat for Humanity, and we will re-sell the home to another eligible family.
However, the process for the sale of homes varies from property to property, please call us at 401.213.6711 for more information or to discuss your situation.
ReStore is a non-profit home improvement store and donation center that sells new and gently used furniture, building materials, appliances and home accessories to the public at a fraction of the retail price. With help from local donors, shoppers and volunteers, proceeds from ReStore cover 100% of South County Habitat for Humanity's overhead expenses, allowing every dollar donated to go directly towards building affordable homes.
Learn more about the ReStore by visiting our ReStore page here.
Frequently Asked Questions
Qualification
Need: Applicant(s) must demonstrate a need for safe, affordable housing
Ability to Pay: Able to pay a low interest mortgage and earning at or below 80% of the Area Median Income, (view chart below).
Willingness to Partner: Applicant(s) agree to partner with Habitat including completing required hours of Sweat Equity, homebuyer education classes and other program requirements.
Based on HUD guidelines - subject to change
How to Apply
We are not currently accepting applications for the homeownership program.
To be notified when homeownership opportunities are available, complete our homeownership interest form found here.
South County Habitat for Humanity accepts applications on a periodic basis depending on opportunities available. During open application rounds you can submit your complete application along with supporting documentation electronically, via mail, or by dropping it off at our office in Charlestown.
Review our Introduction to Homeownership Guide found here for a more detailed look at the homeownership program and documents that will be required for applying.
Benefits of Habitat Homeownership
Affordability: The safety and security of owning your own home with an affordable mortgage and low utility and maintenance cost. Our homes are built to the highest energy efficiency ratings and designed to be easy and low-cost to maintain.
Education: All homebuyers participate in homebuyer education classes to prepare for the responsibilities of homeownership.
Partnership: Homebuyers are able to learn practical skills and develop meaningful relationships with the Habitat community while getting the unique opportunity to help work on their own home!
Trusted Partner: For more than 35 years, South County Habitat for Humanity has sold Habitat homes to 86 homebuyers.
Journey to Homeownership
1. Applications open
Applications for Habitat homes open as soon as a project is fully funded, prior to the start of construction or renovation.
2. Submit complete application
Most application rounds are open for a 30-day period, in that time you must submit your complete application and required documentation. If you have questions during the process contact the Habitat office for assistance, we are here to help! Incomplete applications will not be considered.
3. Financial review
Applications are reviewed for financial eligibility by qualified financial professionals. If we have questions regarding your application we may contact you for clarification.
4. Board presentation
Applications that are financially qualified are presented to the Board of Directors for final approval. This is an anonymous process, the Board is not provided with any identifying information, only necessary information relating to income and need for housing.
5. Orientation
Applicants that are approved for homeownership meet with their newly assigned Homeowner Advocate* and Habitat staff for an in-depth review of the Habitat program. At this time the future homebuyers sign a Partnership Agreement outlining the program requirements of both the buyer and SCHH.
*Homeowner Advocates are Habitat volunteers who volunteer their time partnering with future homebuyers on their journey to homeownership, serving as a liaison between the family and SCHH.
6. Begin program requirements
After orientation the family will begin completing their Sweat Equity* Requirements and taking required Homebuyer Education courses.
*Sweat Equity refers to the non-monetary investment future homebuyers contribute to the construction of their home or other SCHH projects. Sweat Equity is primarily completed on the construction sites, but may also involve volunteering in the SCHH ReStore, assisting with or attending events, completing homeownership workshops, and more.
7. Home Dedication and closing
After all Sweat Equity hours and other program requirements have been satisfied, it is time for the home dedication! This is an exciting event where all of the volunteers, donors, supporters, the future homebuyers, and their friends & family come together at the home to celebrate. This is a celebration of all the work put into the home as well as a way to welcome the partner family to their new home.
Soon after the dedication the future homebuyer will sign their loan agreements and move into their new home.
Where we Build
We build homes in every town within Washington County, Rhode Island.
In our 35 year history we have built 65 homes and repaired or made accessibility modifications on 47 more.
To the right is an interactive map of the permanent affordable homeownership units we have built.