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Housing microfinance: Newer method, traditional principles -- Habitat for Humanity Int'l 1

Housing microfinance: Newer method, traditional principles

Family selection:
Habitat’s housing microfinance efforts follow the same criteria for family selection as any Habitat program. Families are chosen based on their need, their willingness to partner and their ability to pay.

Sweat equity:

Same as always, houses are not built for anyone. Habitat always works with families. In this case, families take the initiative to apply for a housing loan and then use the funds to build or improve their own homes.

Construction assistance:

Families take the lead in creating their own housing solution, but Habitat frequently provides financial education and construction assistance to families and to partnering microfinance institutions.

No profit:

Same as ever, Habitat is strictly no-profit. The size and length of each housing loan, repayment plans and interest rates are set so as not to burden a family, but to ensure the program’s sustainability.

Revolving Fund for Humanity:

With Habitat-provided loans, the cycle continues: Families’ repayments go right back into the local fund to be used as housing assistance for other families.

Our mission:

Methods broaden, but the goal remains the same. Habitat was founded on the conviction that every man, woman and child should have a simple, decent place to live in dignity and safety. Housing microfinance is simply another path toward making that vision reality.