Myths and Truths

Myth:Habitat for Humanity gives houses to poor people.

Truth: Houses are not given to anyone. Habitat for Humanity builds houses with those in need and then sells the houses to homeowner partners. Because of Habitat’s no-profit, no-interest loans, and because houses are built principally by volunteers, mortgage payments can be kept reasonably low to those unable to obtain conventional financing for a home. Habitat homeowners typically have incomes that are 30-50 percent of the median income in the area. They are required to invest an average 300-500 hours of sweat equity–time spent building their own home or other Habitat homes.


Myth: Habitat for Humanity builds houses only for minorities.

Truth: Habitat for Humanity doesn’t build houses for anyone. We build houses with people in need without regard to race. Three criteria drive the family selection process: need; ability to repay the no-profit, no-interest mortgage over a 15-30 year period; and a willingness to partner with Habitat for Humanity. The U.S. Fair Housing Act of 1968 prohibits denying anyone housing on the basis of race, sex, creed, marital status, color, or national origin. The covenant that all local affiliates sign with Habitat for Humanity International also specifies that Habitat for Humanity homeowner families are selected “according to criteria that do not discriminate on the basis of race, creed, or ethnic background.”


Myth: Habitat for Humanity homeowners are on welfare.

Truth: While some do receive public assistance, most homeowners work at low-wage jobs. Habitat for Humanity works in good faith with people who often are at risk in society, knowing that owning a home is not the answer to every problem, but can be an important step–often the first step–toward helping people break out of the cycle of poverty.


Myth: Habitat for Humanity homeowners sell their houses and make a large profit because of the original low cost.

Truth: Habitat for Humanity Founder and President Millard Fuller addresses this issue in A Simple, Decent Place to Live: The Building Realization of Habitat for Humanity (Word Publishing, 1995): “In the two decades of Habitat for Humanity…we have had no history of people selling their houses. Why? Because it’s so hard for these families to get the houses in the first place. It’s like an impossible dream come true. The fact that they can make a profit is not even an issue because they realize that if they sell it they won’t have a house anymore. And they wouldn’t be able to make payments the way the world would demand on a new one, since the bank or someone else attempting to make big profit would now be the lender.” Special second mortgages that are “paid off” by living in the house, as well as first buy-back option clauses that many affiliates put into their agreement with homeowners, also help alleviate concerns that some people may have regarding the resale of houses.

Myth: Habitat for Humanity builds only in cities (or) Habitat for Humanity builds only in rural areas.

Truth: Habitat for Humanity–through local affiliates–is at work in large cities and small; in suburbs and rural areas; in highly developed countries and in those with emerging economies. Because poverty housing is so widespread, Habitat’s work goes on 365 days a year in hundreds upon hundreds of locations throughout the United States and around the globe.