Q: I’ve heard that after completing homeownership classes, contributing sweat-equity hours, and then paying a down payment, Habitat homeowners pay zero-interest mortgages on their homes. Which banks give no-interest loans?

A: This is a great question that we get asked a fair amount! And the answer is actually, no bank. Or rather, we are the bank. Muncie Habitat is the lending institution with all of our homeownership mortgages. Part of my role as the Homeowner Services Manager is being certified as a QLO (Qualified Loan Originator), which I go through state-level and national-level training annually to keep up. All that being said, we are very fortunate to have a bank as a partner in our mortgage management work. Northwest Bank (formerly MutualBank) services all of our loans free of charge. This means our families make payments at a bank branch and the bank helps us with reporting payments, tracking delinquencies, contacting partner families concerning their accounts, managing escrow payments, and much more. But at the end of the day, we are the mortgage lending company and mortgage holder (unless we sell mortgages, but that’s a conversation for another time).

-Ryan Payonk Homeowner Services Manager