Tag: partner homebuyer
What Is Sweat Equity?
Here at Habitat for Humanity in Whatcom County we make reference to ‘sweat equity’ quite a bit. What are we talking about? Specifically, folks who become Partner Homebuyers must perform 500 hours of labor – sweat equity – as part of the home buying process. But sweat equity signifies more than just labor. It also represents cost reduction, pride of ownership, and community investment.
Sweat Equity Reduces Costs
In order to offer affordable housing, we must look for ways to keep construction costs down. Sweat equity is one of those ways. Sweat equity allows us to use less paid labor than would normally be necessary, thereby reducing the overall cost of the houses we build. Without sweat equity, Habitat for Humanity in Whatcom County wouldn’t be able to offer housing so affordably. As it is, a typical mortgage payment (before insurance and taxes) ranges from around $350 to $500 per month. With only $500 down and zero interest to pay, that’s remarkably affordable housing.
Sweat Equity Builds Pride
Justus Kempthorne, a business owner in New York State, says, “When you build something yourself, it has a heartbeat.” We agree. Sweat equity builds pride by creating a personal investment in both home and community. Our Partner Homebuyers literally sweat over their homes and the homes of other Partner Homebuyers. They partner (hence the term Partner Homebuyer) with Habitat for Humanity in Whatcom County, going to work for us in the store, at build sites, in our office, and/or at events. In doing so, they invest not just in their own home, but in their community as well, thereby creating a sense of pride and belonging that often pays dividends in the form of consistent home maintenance and community participation for years to come.
Sweat equity is a winning strategy that’s good for Habitat, our Partner Homebuyers, and our community.