"Being able to give to this family and the community is a good thing for us. A lot of the boys are pretty proud of themselves," he said.
"We've made some poor decisions but at the end of the day we're still people. We're trying to upskill ourselves and show we can actually do something. We can still contribute to the community."
Habitat for Humanity Northland executive officer Conrad La Pointe hoped the house was the start of an ongoing partnership with Northland Region Corrections Facility and NorthTec.
"We always believe it takes a community to build a house, but this build is particularly special because it involved people who don't usually get a chance to engage with the community outside."
The charity was planning three more houses in Northland next year, one of which he hoped could be built at Ngawha.
Eighteen families applied for the home with the successful family - John Constantino, Alma Futalan and children Shanida, 6, and Joshua, 4 - chosen for their overcrowded and unhealthy living conditions, long-term commitment to Dargaville, and responsible way they ran their household.
The family, originally from the Philippines, has lived in Northland for the past seven years. Ms Futalan is a technician at Dargaville Hospital.
"The house is awesome," she said. "We didn't realise it would be like this, it's beautiful."
Mr Constantino said he was pleased building the house would help the prisoners find work once they were released.
Corrections Northern Regional Commissioner Jeanette Burns said it was the third house built by prison inmates in New Zealand - but the first built entirely behind bars and lifted out intact.
The Constantino family was welcomed to the jail with a challenge and haka by prisoners. The house was blessed by prison chaplain Rev Wimutu Te Whiu.