First Bank partners with Habitat for Humanity to promote housing affordability

“Greater tax generation, creation of jobs, opportunities for economic development, increased job retention and productivity, and the ability to address inequality — all are among the economic benefits of increased access to quality, affordable housing.”
– Habitat for Humanity

What does housing-affordability mean?

While many factors impact what affordable means to each buyer, housing policymakers generally use the 30% rule that states no more than 30% of your income should be spent on housing. In areas where the average home prices and rental rates exceed the 30% rule for the average citizen’s income, housing is deemed unaffordable and residents are considered to be housing cost-burdened. Nationwide, U.S. Census Bureau data shows that 40% of renters meet the definition of cost-burdened. Additionally, an October 2023 report from Redfin suggests that homebuyers must now earn a $115,000 annual salary to afford the median-priced U.S. home – that’s up more than 50% since the start of the COVID-19 pandemic.

First Bank’s commitment to affordable housing

As a First Bank client, you’ve made the decision to invest in your community. Our designation as a community bank means that we will always prioritize investing in the communities where we do business. Unlike banks who operate nationally or globally, First Bank is committed to the Carolinas. Banking with First Bank allows you to keep your hard-earned money within your community – where it can do the most good for your neighbors. Our First Bank Power of Good corporate citizenship program has made the following investments in affordable housing:

First Bank and Habitat for Humanity

First Bank is proud to support Habitat for Humanity and their mission towards affordable housing for all. We admire Habitat’s multifaceted approach to housing affordability and their commitment to giving their homeowners the skills to be a successful homeowner.

In a broad sense, Habitat for Humanity works through an application system that reviews the applicant’s level of need, their willingness to partner with Habitat, and their ability to repay a mortgage through an affordable payment plan. Applicants who are accepted into their homeownership program are required to receive financial education and invest hundreds of hours of their own labor (true sweat equity) while their home is under construction. Once their home is complete, Habitat homeowners pay an affordable mortgage and have the skills necessary to manage their budget as well as maintain their home.

First Bank partners with Habitat for Humanity in three primary ways: mortgage loans, financial literacy, sweat equity.

“Thank you for your dedicated partnership with Habitat of Humanity of the NC Sandhills in serving local families with affordable home ownership opportunities… We enjoy working with organizations that share our vision of a world with which everyone has a safe and affordable place to call home – and your team is helping to make this possible in our little corner of the world and beyond.”

– Amie Fraley, Executive Director, Habitat for Humanity of the NC Sandhills

Donating Time Towards Sweat Equity

Sweat equity is non-monetary and gained through investing hard work. As a homeowner, sweat equity is achieved by handling renovations or repairs yourself rather than hiring someone to do them for you. The increase in value from your time plus the money you save by not hiring someone else to do the job for you creates equity. All Habitat homeowners must invest hundreds of hours in sweat equity alongside other volunteers. First Bank associates participate in numerous build days throughout the year as teambuilding events and individual endeavors.