Homeownership
Strong and stable homes build strong and stable communities.
Working in partnership with local families, Knoxville Habitat creates opportunities for homeownership.
Future homeowners are active participants in the homebuilding and home buying process. The foundation of our unique program is working in partnership with families seeking the strength, stability, and independence that homeownership provides. Knoxville Habitat homeowners build and buy their very own homes, creating brighter futures for themselves and their families.
How does it work?
Knoxville Habitat’s model creates a cycle of community investment putting home mortgage payments to work building more homes.
Identify
land for affordable housing communities, through donation or partnership.
Build
homes through homeowner “sweat equity” hours and volunteer labor.
Save
on expensive labor costs.
Sell
to qualified buyers at a price they can afford.
Invest
mortgage payments back into the program to build more Habitat homes.
How do I qualify?
Future Habitat homeowners must meet three core qualifications:
In Need of Housing
Promoting safe and affordable housing is at the heart of KHFH mission.
Prospective homeowners must demonstrate a need for housing, which could include but not limited to:
- Dealing with rental costs exceeding 30% of monthly household income
- Living in overcrowded conditions
- Facing unsafe or unhealthy living conditions
Willing to Partner with Knoxville Habitat
To qualify, each family is expected to invest a minimum of 300 hours in sweat equity. This partnership involves:
- Participating in the construction of your home
- Contributing to the construction of other homes or working at Habitat’s ReStore
- Attending weekly budgeting and other preparedness workshops
Financially Ready for Homeownership
To ensure sustainable homeownership, applicants must have the means to afford a mortgage.
Eligibility includes:
- Ability to afford a monthly mortgage payment that will not exceed 30% of the household’s gross income.
- Being at least 21 years of age
- Having a steady income falling between 45% and 80% of the Area Median Income (AMI) for Knox County
How do I apply?
Embarking on the path to homeownership is an exciting journey, and Knoxville Habitat for Humanity is dedicated to guiding you through every step. We understand that applying for a home can seem overwhelming, which is why we have streamlined the process to make it as clear and straightforward as possible.
Please Note: Completing 300 sweat equity hours is a critical part of our partnership expectations.
Failure to meet these hours can lead to deselection from the program. For detailed information on deselection criteria, please review our Deselection Policy
We can provide sweat equity opportunities for every ability and disability. If you have concerns about sweat equity please contact the Family Services staff.
The Knoxville Habitat for Humanity first-time homebuyer program takes approximately 12 to 18 months to complete, which varies based on sweat equity hours, lot availability, financial readiness, and adherence to the partnership agreement.
Here are answers to the questions we hear most.
How do I apply?
While we do not have the specific details for the next application process, you can expect that we will hold application information sessions. There will be a limited number of spots for applicants every round. You are expected to attend an info session. During the application process, you will be required to meet with Family Services staff. If you miss this meeting no call, no show, we will call the next potential applicant to take your spot.
How long is the application process?
Applications include lots of paperwork that must be verified and processed. Application processing will take at minimum 2 months so that our Family Services committee can review the applicant profile for program qualification and then our Board of Directors must vote to approve acceptance into the program. We will give you notifications by mail so please make sure your address on file is up to date.
Is there a minimum credit score?
Knoxville Habitat for Humanity does not currently require a minimum credit score. We will pull your credit as part of your application. We will be examining the credit report for bankruptcy history, judgements, and total debt load as those factors can be grounds for application denial. For more information please email the Director of Family services at choward@khfh.com
What counts as income?
Income can be wages, disability, social security, pensions, etc. If you have further questions about income please email the Director of Family Services at choward@khfh.com
What will my mortgage payment be?
Knoxville Habitat for Humanity calculates your mortgage payment based on your income at the time of closing. Knoxville Habitat for Humanity policy is for mortgage payments to be no more than 30% of household income. Your mortgage payment will include: homeowners insurance policy, property taxes, and any applicable HOA fees.
Does Habitat give away homes?
This is a common misconception. Habitat for Humanity sells our units to our family partners through a zero to low interest mortgage. Units are appraised by a rotation of outside third party appraisers. Units are sold at the appraised price. The mortgage is made affordable by utilizing a second, silent, forgivable mortgage.
Will a Habitat home affect surrounding property values?
Habitat for Humanity sells our units to our family partners through a zero to low interest mortgage. Units are appraised by a rotation of outside third party appraisers. The appraiser uses neighborhood comparables to establish an appropriate property value. Units are sold at the appraised price. The mortgage is made affordable by utilizing a second, silent, forgivable mortgage.
Where is Knoxville Habitat Building?
Habitat homes are located throughout Knox County.
We build homes and communities where we can acquire land that makes development affordable to future homeowners, most often through local government partnerships or grants. New homes are typically simple, contemporary single family or attached twin homes consisting of 3 bedrooms and 2 bathrooms.
We are currently building in the Strawberry Plains community.
Support Beyond Our Program
If our program isn’t the right fit, we’ll help you find one that is.At Knoxville Habitat for Humanity, we recognize that finding the right home buying assistance is crucial. If our First-Time Homebuyer program isn’t the perfect match for your needs, we don’t want you to feel discouraged. We are committed to helping everyone in our community achieve their dreams of homeownership. That’s why we maintain strong partnerships with a variety of local organizations dedicated to supporting potential homeowners. Whether you need different financial options or other types of home buying assistance, we encourage you to explore these alternative resources:
- Knoxville Leadership Foundation
- Website (link to https://klf.org/)
- 865-524-2774
- Knoxville Area Urban League
- Website (link to https://www.thekaul.org/)
- 865-524-5511
- Knox County Department of Community Development (KCDC)
- Website (link to https://www.kcdc.org/)
- 865-215-3980
- Home Source
- Website (link to https://www.homesourcetn.org/)
- 865-637-1679
- Family Promise
- Website (link to https://familypromise.org/what-we-do/programs-services/)
- 865-584-2822 (for immediate shelter)
- Knox County Housing Authority
- Website (link to https://knoxcountyhousing.org/)
- 865-637-7942