Habitat para la Humanidad Mexico (HPHM), also known as Habitat for Humanity Mexico, is a non-profit organization that provides low-income families living in overcrowded or inadequate housing with the financial support and technical assistance needed to construct safe and affordable homes.

Approximately 2 million families across Mexico currently live in substandard housing. Registered in 1990, HPHM -- a subsidiary of the Christian U.S.-based non-profit Habitat for Humanity -- aims to provide underserved families with decent homes to live in. To date, the organization has funded over 41,000 construction loans, serving communities in 18 states across the country.

HPHM loans typically range from $475 to $2,200 USD, and can be used for new housing construction or home improvements, both major and minor (e.g. bathroom, heating or electric installation). Before their loan approval, borrowers must complete a savings program to raise 5% of the loan amount. Where possible, the Mexican government also applies subsidies to these loans.

HPHM aims to promote community development and education through the construction process with a three-stage structure:

(1) Before their credit approval, potential borrowers and their families are encouraged to join construction groups to learn technical construction skills and gain the financial literacy necessary to take out a loan.

(2) Once families have been approved, the construction groups begin to build each borrower’s home, working together to ensure that each house is safe and adequate.

(3) Families begin to repay their loans upon completion of their new home.

In addition to providing financial services, HPHM supports the communities it serves by offering financial education courses, community health improvement initiatives, and reconstruction support following natural disasters.

A unique lending approach:

In 2012 alone, Habitat for Humanity Mexico impacted more than 20,000 lives through the construction of 4,000 homes. Together, Kiva and HPHM will provide families that are currently living in substandard housing with the financial support and technical assistance necessary to build safe and affordable homes. In particular, Kiva lenders’ funds help HPHM to grow the size of its housing loans, enabling it to expand its reach and approve families that it might otherwise have to decline. By incorporating Kiva’s non-donation based funding model, HPHM also aims to achieve higher self-sufficiency and sustainability.