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conventional mortgage to purchase a home. Habitat for Humanity makes ownership <br />possible by offering a variety of loan products, some including zero percent interest <br />loans. <br />11. Repayment monies -going to Kittitas County or into the Revolving Fund for Humanity <br />Answer: We request that when a partner family loan closes or a partner family make <br />a house payment to Habitat for Humanity -that the funding stays with Habitat for <br />Humanity. This funding is what is used to start the next Habitat House. Every Habitat <br />house built provides funding for the next Habitat house. With affordable housing at a <br />crisis level, our goal is to increase capacity. To do this requires funding. The more <br />funds we can raise the more houses we can build. All Revolving Fund for Humanity <br />revenue goes straight into the next house. This money is not used for administrative <br />purposes but toward our program costs for construction. <br />12. Revolving Fund for Humanity vs funding to build additional homes <br />Answer: The Revolving Fund for Humanity is part of the fund to build additional <br />homes. Some of our partner families have a zero-interest loan which was financed by <br />Habitat for Humanity. These families pay a monthly mortgage to Habitat for <br />Humanity and their payments, which come in monthly installments are used to fund <br />the current house we are building. We have just started using 3rd party loans which <br />allows us to receive a portion of the purchase price of the house at the closing of the <br />house. The 3rd party loan proceeds come into Habitat when the homeowner loan <br />closes. This is new to Habitat and it is allowing us to build houses more quickly. We <br />are not waiting over a period of thirty years for small monthly increments. Most of <br />our 3rd party mortgages will require a silent second mortgage which will be financed <br />by Habitat for Humanity using a zero-interest loan. This second mortgage will not be <br />due until the first mortgage has been paid off (30 years). At that time, it will be <br />spread over a 10-year period and will not exceed 30% of the homeowner's income at <br />the time of their application. <br />13. Percentage of recipients who repay their obligation <br />Answer: Kittitas County Habitat for Humanity has built 17 houses since 1993. One <br />hundred percent of our homeowners are making payments on their homes and are <br />current on their mortgages. Only one homeowner has sold her home which she did <br />just prior to her death. She lived in her house for over 20 years, raised her three <br />children in her home who have all gone on to attend various universities. When she <br />sold her home, she had less than 5 years left on her mortgage. <br />6