Many Think Habitat for Humanity Is Bad — Here’s What You Need to Know

Rayna Skiver - Author

Feb. 27 2023, Published 2:37 p.m. ET

Why Habitat for Humanity Is Bad
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You’ve probably heard of Habitat for Humanity: a popular nonprofit organization that aims to provide housing for people. And if you haven’t heard of it, its description sounds pretty good, right?

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Of course, there are a lot of great things about the organization, but having the full picture is important. In addition to what makes the organization good, we also might want to know why Habitat for Humanity is bad.

What makes Habitat for Humanity bad?

Habitat for Humanity Cons
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If you’ve only heard about Habitat for Humanity in passing, you’re probably under the assumption that the houses they build for people are free — but that assumption would be wrong.

In fact, not only are people purchasing these homes, but they’re also doing physical labor to get them as well. Habitat for Humanity calls this “sweat equity,” which is a required part of the program — participants must gain hundreds of hours of volunteer work by helping build homes.

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This can be a problem because this work is usually done before participants know the cost or mortgage terms, according to 10 Tampa Bay. If these specific details leave potential homeowners unsatisfied, there’s not much that can be done in terms of changing their decision — especially after they’ve put in hours of work that cannot be taken back.

Another criticism comes from the organization’s lack of cooperation. Some people have discussed the fact that their mortgage has increased dramatically due to changes in property taxes, insurance, or other factors, 10 Tampa Bay explained.

When trying to work out a solution to the problem, some people faced difficulties. In one situation, a program participant was struggling to pay their ever-increasing mortgage payment despite working two jobs.

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Habitat for Humanity cut her monthly payment in half — a seemingly helpful gesture — but the participant didn’t understand that she would have to pay the missing lump sum at the end of the year, according to 10 Tampa Bay.

The organization is typically viewed as one that helps people in times of need, but it didn’t seem very helpful in this situation.

Habitat for Humanity isn’t all bad though.

Habitat for Humanity Pros
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There are definitely a lot of different things that the nonprofit should work on and improve. But despite its faults, many have still benefited from the organization.

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Achieving homeownership is no easy task, but Habitat for Humanity can make the process a little bit easier for those in need. For example, there’s no required down payment and no interest on the mortgage, Habitat for Humanity Southern Alberta explained.

And for many people, being able to avoid the challenge of saving up thousands of dollars is very appealing. Habitat for Humanity alleviates some of the barriers that are commonly encountered when buying and owning a home.

Having a stable place to call home can make a big difference in a person’s life — and the nonprofit shared exactly how.

According to research, homeownership can lead to a family having better health, both physically and mentally. It can also be the reason why children have greater educational accomplishments. Those are no small feats.

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Habitat for Humanity also has “ReStores,” which are secondhand stores that sell used home improvement goods at a low price. Items like dishes, furniture, doors, appliances, tools, tiles, and more can be found inside the store.

All of the money made from ReStores helps fund housing projects, according to their website.

The stores can also serve as great community resources, as they can make necessary home items more accessible for low-income families. If something breaks, having an affordable replacement option can be a total lifesaver.

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