Monadnock Habitat for Humanity Homeownership Program

What is Monadnock Habitat for Humanity Homeownership Program?

Monadnock Habitat for Humanity Homeownership Program is a silent second mortgage for homebuyers in Keene, New Hampshire, administered by Monadnock Habitat for Humanity.

• Monadnock Habitat for Humanity partners with income-eligible families in southwestern NH to build and purchase affordable homes. Families buy through a zero-interest first mortgage (typically 30 years) held by MHFH, with a non-amortizing silent second for the difference between appraised value and first-mortgage principal. Selection is need-based; families contribute sweat equity (300 hours two-parent, 250 single-parent), complete financial literacy training, and maintain a 12-month budget.
• Zero-interest mortgage.
• Only $1,000 down payment.
• No prepayment penalty.
• Silent second requires no monthly payments.
• PITI capped at ~30% of household income.
• Financial literacy training included.
• Funding comes from Volunteer labor, donated materials and services, grants, community fundraising.

Do you have to pay it back?

Monadnock Habitat for Humanity Homeownership Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by sale or transfer.
• The assistance is recorded in second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Monadnock Habitat for Humanity Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Monadnock Habitat for Humanity Homeownership Program sets its income limit as follows: Total household income between 60% and 80% of HUD Area Median Family Income (FAQ states 50%-80% AMI). Published minimum income thresholds: Family of 1 >=$44,940; 2 $51,360; 3 $57,780; 4 $64,200; 5 $69,336; 6 $74,472. A 2020 table lists 50% AMI minimums and 80% AMI maximums (e.g., Family of 4: $63,950 min / $96,250 max).

• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Monadnock Habitat for Humanity Homeownership Program caps the purchase price as follows: No fixed maximum; mortgage principal equals total construction cost plus a 10% administrative fee, reduced by volunteer labor, grants, and donated materials.

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Monadnock Habitat for Humanity Homeownership Program serves buyers purchasing in Keene, New Hampshire.

• The program targets specific areas: Southwestern New Hampshire / Monadnock region; 27 specified towns including Keene, Peterborough, Jaffrey, Swanzey, Winchester.

How do you apply?

Applications for Monadnock Habitat for Humanity Homeownership Program go through Monadnock Habitat for Humanity, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Monadnock Habitat for Humanity (online Financial Literacy Training and required homeownership/financial classes); applicants develop and maintain a 12-month budget with a Family Relations rep..

2. 2

   Contact Monadnock Habitat for Humanity to reserve funds

   Funds are reserved through waitlist, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.