How Habitat Works

“We now live in a house that is warm and comfortable. Our health is improving.”
Dayansuren, Ulaanbaatar

“It feels good to hold the key to a house I now can call my own. Thank you, Habitat.” 
Tuvshinjargal, Ulaanbaatar

Habitat builds simple, decent and affordable homes. Habitat homes are sold to families at no profit and are financed with no-interest loans. Prior to construction, each family saves 33% of the cost of the house. Another third of the cost comes from Habitat for Humanity International, and the final third is raised within Mongolia from donors and from other homeowners' mortgage payments. Homeowners repay the cost of their home in small monthly installments (usually about $25 USD per month) over four to six years. The family saves for renovation 50%. These mortgage payments go in to the Revolving Fund for Humanity, which helps to finance more houses in the community.

How Are Houses Financed?

How Are Families Selected?

• Housing Need
• Ability to save 33% of house cost prior to construction
• Ability to repay the loan
• Ability to contribute at least 400 hours to house construction – “sweat equity”

Save-and-Build

• Families save 33% of the cost of the house prior to construction
• Saving reduces the cost of the loan
• Families save in groups of 10 to 12
• Then, those families help to build each others’ houses together

Save-and-Build also promotes and re-enforces:

• Participation by homeowners in planning & implementation
• Dignity & self-worth
• Process of empowerment
• Sense of ownership

Revolving Fund for Humanity

• Habitat makes a low-cost, no-interest loan to the homeowners
• The homeowners repay the loan
• The payments fund another person’s home

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