A beneficiary buys a house using money borrowed from Level Ground just like most ordinary real estate transactions – this ensures true ownership and empowerment, and does not carry the indignity of receiving yet another handout.
Most of our beneficiaries would never qualify for a loan from a bank and this is where Level Ground steps in.
Since the money we lend out is funds received as donations, the intention is that the beneficiaries will eventually have their debt cancelled provided they have faithfully paid the minimum nominal sum (based on their means) agreed by them towards their house.
The balance of the bond is then written off by Level Ground after a period of 7 years – an application of the year of jubilee principle from the Old Testament where debts are forgiven.
Who we help
Our committee at Level Ground reccomends candidates for assistance. Candidates are people with whom we have relationship over time, within our wider church community who are South African and previously disadvantaged.
Screening
Candidates then go through a screening and interview process.
The recipient is ‘interviewed’ by a committee member AND the person who nominated them as to their needs, family history, savings plan etc. The committee member and nominator then assist the recipient every step of the way through to owning or renting their own brick house, the key being the formation of relationships.
Searching for the right house
Whilst the ‘interview’ process is going on the committee members then will be searching for appropriate land/housing to house those on the list. In that time the recipient will be encouraged to start saving towards a down payment towards the house and assisted in working out their finances to do so.
Paying off bond over time
Once appropriate housing has been found, the recipient will then be moved to the housing, paying their down payment and then will be paying a monthly bond (based on affordability and not what a bond actually would cost) whilst Level Ground will pay the balance of the bond out of donated funds – the restitution amounts received from donors.