Interesting situation - Habitat for Humanity house

[Brandon Holtzinger]

**If you don't want to read the whole thing the big question at the end is:

Is it wrong to pay off a Habitat for Humanity house as quickly as possible (about 5 years for us) then rent it out to help make money for us to buy a bigger house.

My girlfriend was a single mom before we met and she qualified for a Habitat for Humanity house. She lived in this house for 2 years before we met. I moved in with her a year ago. We have been renting out my old house and it has become our first investment property (hopefully of many).

It is a 3 bedroom 1 bath house. We have 3 kids between us. We have outgrown this house. Here is the tricky part of our situation. The house appraises for about $80,000. Since it is a habitat home her loan was for $40,000 at 0% interest. So, we owe about $35,000. The house has to be owner occupied while it is financed or Habitat can take the house back.

The only option I see is to get this house paid for as quick as possible and either sell it or rent it out. Do you see any other options? Is it wrong to rent out (and make money) on a Habitat for Humanity house after it is paid for. It is not her fault that her situation in life changed years after moving in.