Can Habitat homeowners sell their houses and make a large profit because of the original low cost?
A Habitat homeowner cannot profit unfairly from their home. Habitat for Humanity of Pinellas County has the right of first refusal if the homeowner needs to move during the period of time that they are paying the mortgage. We repurchase the home at an agreed-upon formula that is written into their mortgage when they purchase the home. We also write a silent second mortgage for the difference between the mortgage and the value of the home. This second mortgage is forgiven over the life of the mortgage. The silent second protects our donors and volunteers investments in our organization by reinforcing our right of first refusal and discouraging predatory lenders from trying to get a Habitat homeowner to refinance their 0% interest mortgage.
