Sunday, 21 February 2010

My Habitat Home: Can I Rent My Home Out?

As a home owner through Habitat for Humanity I can not rent my home out while I still have a mortgage out on my home.  When my mortgage is paid off in 25 years then that's fine.  While that mortgage is still there the answer is no, not going to happen.  Your home can be foreclosed on for that reason.

Can Habitat do that legally?  Absolutely.  At the end of the journey you go to the lawyers office and this is one of the things that is talked about.

Habitat built the house for you and no one else. To use the house in an opportunistic manner takes your right to the house away.  I know that to some that may not seem right.  Habitat builds for needy families living in substandard conditions, not for renters.

You are in a binding contract with Habitat to remain in that home until it is paid for.  However, if something happens like the home owner passes away the house become an heir ship if there is no will.  If you have a will it goes to who ever is on your will.  Keep in mind how much you still owe on it and if the care and upkeep of the home can be realistically met.


Shirley said...
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Anonymous said...

If a situation forces a much needed move and you are a habitat family can the house be traded for another habitat home in the area you need to move? Or will the home become a total loss for the family getting the home? However can a habitat family be absorbed with another habitat family in another city?

Shirley said...

Unfortunately, you must live in your home or resell it to Habitat. If you are invested in it and almost done paying it off, it should have risen in value in which case Habitat would not be interested in purchase and you can put it on the market. You can't trade a house for another.

Anonymous said...

If a home is paid off, then can it be rented? And is there a max that can be charged in rent?

Shirley said...

If it is paid off, yes absolutely you can rent it out. The going rate for a rental would be up to you. I, personally, would research the pricing for a rental in the neighborhood and go from there. Potentially, you could purchase another piece of property and have your renters pay for your new property. However, upkeep of the property is vital here. It's worth more in good shape than if you let things fall apart around you.