Welcome letter from CEO Ann Felton
Central Oklahoma Habitat for Humanity just celebrated its 25th year of making decent, affordable housing available to limited income families throughout central Oklahoma. Today, with the support of partners like you, we are continuing this important mission. Our 700th house is under construction and we plan to complete another 45 houses in 2013. These will be homes that many of our families have dreamed of but never thought they would actually experience for themselves. We have already broken ground and look forward to building in Faith Landing, our newest addition in southwest Oklahoma City which will eventually be home to 33 families. We continue to build in Hope Crossing and Las Rosas additions, Yukon and Blanchard. Thanks to your giving spirit more families than ever before are realizing their dreams of a better life through home ownership with Central Oklahoma Habitat!
Our homebuyers are so thrilled about finally realizing their dreams of a home of their own, because it will mean so much to their families for generations! If you have ever wondered about the full effect of your giving to Habitat you can watch a homeowner’s story and please let me share a very enlightening picture with you…
Consider the dollars-and-cents value of a Habitat home.
An online mortgage calculator tells us that a mortgage payment of $417 per month for the next 30 years will purchase a $70,000 home at today’s interest rates - ideal interest rates that would not be available without a 20% down payment. Check out the following comparison between Connie, a conventional homebuyer and Holly, our Habitat homebuyer:
Conventional $70,000 - requires $30,000 income to qualify
Habitat $70,000 - requires only $19,000 to qualify (Central OK Habitat’s minimum income requirement)
Conventional $541 / month ($417 principal + interest, $54 tax, $70 insurance) on a 30-year note
Please Note: Without a significant down payment, an additional fee for mortgage insurance would be added to the above payment and this fee could easily add $50.00 or more to the amount of the monthly house payment.
Habitat: $425 / month ($286 principal, $0 interest, $54 tax, $70 insurance, and $15 maintenance fee reserved for repairs) on a 20-year note
Total Amount Paid Over Life of Mortgage in Principal and Interest:
Conventional: $150,120 (more than twice the original loan amount) - $417 x 12 mo. x 30 years
Note: At the end of 10 years, the conventional 30 year, 6%, $70,000 mortgage would still have a balance owing of $58,580. At the end of 10 years the balance owed on the Habitat house would only be $35,680. The Habitat homeowner builds equity much faster.
Holly Habitat will pay off her house in about 20 years, after which she will owe about $1,500 a year at today’s prices for taxes and insurance. After 15-20 years, she will probably want to replace the heating/air conditioning system, the roof and perhaps the carpet along with other upgrades. Money formerly allocated to house payments will easily handle this.
Connie Conventional, on the other hand, will be paying $541 a month ($6,492 a year) for another 10 years to complete the purchase of her home. Perhaps she is still paying for replacement of the roof and/or heating/air conditioning system, perhaps it remains to be done.
During the life of the two loans, the Holly Habitat will have spent $80,000 less for her home than Connie Conventional. This will free up funds to spend on children, home improvements, education, vacations, retirement, etc. This $80,000 helps “levels the playing field” somewhat for limited income families. This $80,000 of “saved money” is not taxed - an additional benefit. It doesn’t show up on a record of earning, but it is, nevertheless, real.
Imagine that your involvement today, as a donor or volunteer, can be worth more than $80,000 in someone’s life, along with the benefits of home ownership. And your gift once given recycles over and over for years as each Habitat homeowner pays back the cost of their home at no interest.
Your involvement in the past has enabled us to build all these homes that have profoundly changed the lives of all the members of those families and have positively impacted their friends and relatives, neighbors and communities.
With your help, we can change many more lives, one house at a time!
Wishing you all God’s blessings!
Ann M. Felton
Chairman & CEO
Central Oklahoma Habitat for Humanity is a nonprofit, ecumenical Christian housing ministry working in partnership with God and the community to build simple, decent, affordable housing, and to provide hope for responsible, hard-working, limited income families living in substandard conditions.