First Bank partners with Habitat for Humanity to promote housing affordability

There’s no place like home for the holidays.

The benefits of homeownership reach far beyond the financial investment and earned equity. Owning a home means long-term security and stability for individuals, families, and economies to thrive. This holiday season, we’re reflecting on our Power of Good commitment to Housing Affordability and our partnership with Habitat for Humanity.

“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.

Housing affordability snapshot on the Carolinas

As population growth continues to rise across North and South Carolina, it’s proving difficult to keep up with the increase in demand for housing. Many experts point to the combination of limited supply and growing demand for the sharp rise in housing costs. Cost-burdened households in North Carolina represent 45% of renters and 19% of homeowners while in South Carolina those numbers are 50% and 25% respectively.

What are the impacts of cost-burdened households?

Households that spend more than 30% of their budget on housing oftentimes experience a snowball effect on other areas of their budget. Many housing cost-burdened households experience food insecurity and are forced to make difficult decisions like choosing between paying a bill or seeking medical care. This also makes it difficult to save for emergencies in the future, and places more reliance on credit card spending. When these difficult circumstances at an individual level become compounded, the entire community’s wellbeing becomes marginalized.

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:

$179 million in Low-Income Housing Tax Credits loans since 2019
$175 million in loans for affordable multifamily housing developments since 2019
$6.2 million in funding secured for development partners from Federal Home Loan Bank since 2017
$1.5 billion in Community Development Loans since 2019 in support of low-and-moderate-income communities
$51 million in loans for Habitat for Humanity homeowners since 2019

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

365 loans totaling over $51 million

First Bank has originated $51.2 million in loans for Habitat for Humanity homeowners from 2019 to 2023. Through this win-win partnership, First Bank offers Habitat homeowners a well below market, fixed rate loan with no First Bank fees. By providing low cost third-party financing, this allows the Habitat for Humanity chapter to dramatically increase their cashflow as they would normally hold the mortgage during the 30-year repayment phase.

Building a Strong Financial Foundation

As a requirement to Habitat homeownership, applicants must complete the Habitat for Humanity financial education program. Through our First@Work program and online financial education courses, we maintain an extensive collection of educational resources covering a range of topics like personal finance, mortgage lending, budgeting, savings, and understanding a credit score. It’s been an honor for our team to leverage these resources and volunteer as coaches in the Habitat financial education program.

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.

Want to get involved?

If you would like to join First Bank in supporting Habitat for Humanity, you can do so in a number of ways. Volunteering at a construction site or Habitat ReStore, donating, and advocating for affordable housing are just a few ways to get involved.

Learn more about Habitat for Humanity on their international website: https://www.habitat.org/
Find the Habitat for Humanity closest to you: https://www.habitat.org/volunteer/near-you/find-your-local-habitat

To learn more about First Bank’s corporate citizenship key impact areas, visit our Power of Good page here.

Share:

Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.

First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Base of golf club next to ball with feet in the background

Save Some Green on the Greens: Cost-Cutting Tips for Golfers Whether you’re the next Arnold Palmer or just a weekend duffer, there are plenty of ways to save money on the course. 3 min read

Team members of Ace Hardware standing in front of paint swatches.

An Evolution with Heart: Inside Schofield’s Ace Hardware A lot has changed since 1918, but Schofield's (now Schofield's Ace Hardware) place in the Florence, SC community remains the same. Despite a range of national chain big-box retailers, locals still flock to Schofield’s. 2 min read

Farmer with wooden box full of ripe vegetables

Cool Crops for Chilly Days: How to Plant a Fall Garden, Part 2 To get the inside dirt on gardening goodness, we talked to Julie Thompson-Adolf, who is a master gardener, South Carolina resident, and owner of Garden Delights. Below, in part 2 of this series, she shares some additional tips and tricks to stay green all winter long. Planning and Planting for Spring Vegetables aren’t the only plants to consider for your fall garden. “Fall is for planting, and it is a particularly good time to plant trees and shrubs,” says North Carolina gardener, Helen Yoest, author of Gardening with Confidence and Plants with Benefits. “This autumn, I’m adding 5 more highbush blueberries for my Raleigh garden, along with another fig tree.” Have a smaller space? With newer, dwarf varieties available, fruit trees and bushes can grow in containers on a balcony or patio, perfect for land-challenged homeowners. Along with fruits and vegetables, fall is an ideal time to add to the herb garden. “It’s also garlic planting time in my area,” says Yoest. “I plant starter bulbs in whisky-barrel containers.” Yoest also recommends buying garlic bulbs for planting purposes, as store bought garlic is typically treated with a growth inhibitor, preventing the bulbs from sprouting. Rebecca McKinney, Executive Director of the South Carolina Organization for Organic Living, agrees that fall is the perfect time for alliums. “Perennial alliums are my favorite vegetables,” she says. “I especially love perennial leeks and Egyptian walking onions. Although they take a little more effort than true perennials, if you manage the planting and spacing of the bulbuls, you’ll always have a steady supply.” Immediate Garden Gratification While planting garlic and leeks requires patience until harvesting next summer, you can enjoy almost immediate gratification by creating a beautiful, edible container filled with quickly maturing crops. Use the container design principle of “thriller, spiller, and filler.” Rainbow Swiss chard or Tuscan kale provides an eye-catching, tasty “thriller”—plant it in the center of the container. Add a variety of lettuces around the chard or kale as the “filler.” Lettuce is available in many beautiful colors and textures, such as the heirloom ‘Forellenschluss,’ with its red speckles on bright green leaves. ‘Tom Thumb’ peas serve as a “spiller,” with their dwarf vines, pretty blooms, and crisp pods. To add 4 min read

Business Spotlight: Chris Gilder of Meridian

Business Spotlight: Meridian From concept to completion, Meridian specializes in the design, engineering, fabrication, assembly, integration, staging, deployments and support of self-service kiosks. 2 min read

First Bank partners with Habitat for Humanity to promote housing affordability

Ready to talk to an expert?

There’s no place like home for the holidays.

“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

First Bank and Habitat for Humanity

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

Want to get involved?

Ready to talk to an expert?

You may be interested in...

First Bank partners with Habitat for Humanity to promote housing affordability

Ready to talk to an expert?

There’s no place like home for the holidays.

“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

First Bank and Habitat for Humanity

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

Want to get involved?

Ready to talk to an expert?

You may be interested in...

“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