How We’re Creating a Home for All Through Habitat Partnership

Homeownership can do more than improve someone's physical and mental well-being-it can change the course of a family's future for generations to come.

That's why First Merchants Bank is proud to work closely with Habitat for Humanity chapters within our four-state footprint.

Owning a home builds financial security and generational wealth, giving a family's children a better chance for success as they head out into their own futures. It also provides stability-especially for families working with Habitat for Humanity.

It's a mission that dovetails with First Merchants' dedication to supporting our diverse communities and providing needed banking and financial wellness services to those who may have been shut out of the banking system in the past.

"Habitat for Humanity and First Merchants have similar goals in that Habitat is focused on not only providing affordable housing but in providing ongoing support and counseling for retaining homeownership," said Michelle Kirsten, First Vice President and Director of Product and Process Innovation with First Merchants Bank. "It is financial education. Habitat is a partner for those families from beginning to end, and its primary focus is on affordable housing and retention of that."

Laura Castone, Vice President and Manager of Corporate Social Responsibility with First Merchants Bank, explains that First Merchants supports Habitat for Humanity in three ways.

"We contribute philanthropically, through volunteerism, and through products and services we offer," she said. "This is one more way we're dedicated to bridging the homeownership gap and improving access to housing."

In 2023, First Merchants contributed more than $71,000 in donations and more than 422 hours in volunteerism efforts to Habitat affiliates within our footprint. In 2022, those numbers were $64,030 and 413 hours, respectively.

First Merchants also provides needed lending and banking services to non-profits and their clients.

"For some of these partners, that means servicing, underwriting, or originating mortgage loans for clients. For others, we're partnering with Habitat clients and working closely with them to ensure they're financially ready once it's time to apply for that mortgage," Michelle explained.

"What we want to offer habitat is for them to live in the space that they are intended to focus on that and do that well, and for us to focus on some of those operational aspects like originating the mortgage," she added. "We're providing financing, so neither Habitat nor the client is having to provide all of those funds up front, and we do loan servicing so that we're handling all the rules and compliance - so we're taking a lot of those pieces off their plate and allowing Habitat to focus on their mission, which is allowing the homeowners to get affordable housing."

To further this partnership, First Merchants is working on a unique loan product to better assist Habitat and their clients.

"So, it's more credit forgiving, more credit flexible, higher loan to value financing - possibly up to 100% -- and could be used with downpayment assistance and things of that nature," Kristen said. "It's something we can offer because those clients would be working with Habitat, which is like a year-long relationship investment of sweat equity, education, and working with our team. So, there's a different level of expectation and responsibility."

Learn more about our dedication to communities and how our teammates spring into action to help those around them prosper.