HURRICANE – Self-Help Homes is looking for ‘high priority’ families to join a sweat equity program which helps families build their own homes.
With the help of the USDA – Rural Development’s Mutual Self-Help Housing program, families can help build their own homes and benefit from low interest rates, very low down payments and monthly subsidies. Closing costs are worked into the loan, and mortgages are 33 or 38 years.
“The out-of-pocket costs for our families are under $1,000, only $500 down and up to $500 in tool costs,” Julie Lindquist, spokeswoman for Self-Help Homes, said in a press release. “For families who are willing to work hard, it’s a wonderful program.”
Self-Help Homes administers the ongoing USDA program in Washington County. So far, 29 homes have been built in the county, with nine more under construction and an additional seven families getting ready to close on their loans and start building. More groups will be formed on a continuing basis.
“We recently hired a second construction supervisor for Washington County,” Lindquist said, “which means we can have two groups building at the same time. That will reduce the wait times for qualifying families.”
Self-Help Home is currently building in the Hurricane Heights area of Hurricane. The homes are single-level on small lots and built in a southwestern style. House plans are available on the Self-Help Homes website.
“Right now, we really need ‘high priority’ families,” Lindquist said. “These are families of five or more earning $40,000 to $48,950 and who also meet all the other qualifications.”
To qualify for the program, families can’t own property, must have credit scores over 640, a debt-to-income ratio of 41% or lower and currently paying at least $600-$700 per month in rent.
Qualifying families must commit to working every Saturday from 8 a.m. to 2 p.m. and be willing to put in at least 35 hours per week to work on their homes. Family members who are on the mortgage must provide at least half of the 35 hours, but the other half can be provided by the family’s own volunteers.
After qualifying and closing on USDA construction loans, small groups of families work together to build each other’s homes.
It typically takes eight to 10 months to complete the homes. Families in the group all work together to finish each other’s homes, and no one can move in until all the homes are finished.
Self-Help Homes is also accepting applications from families whose earnings are at or below 80% of the area median income and earn at least $40,000.
“You have to be able to show that you can pay the mortgage,” Lindquist said.
This translates to earning less than $59,300 for a family of one to four, or $78,300 for a family of five or more. After subsidies, mortgages are typically in the range of $1,150 to $1,300, depending on the family’s situation.
Self-Help Homes is headquartered in Provo and has an office in St. George. Self-Help Homes has been in operation as a 501(c)(3) nonprofit for 22 years. A total of 535 homes have been built in Utah, Wasatch and Washington counties; 27 more are under construction and 26 families are ready to close on their loans.
“With housing costs so high in Southern Utah, this program is a wonderful way for these families to be able to get into a home of their own. And often, their mortgage payments are less than what they have been paying in rent.”
For more information about program qualifications and how to apply in Washington County, see the Self-Help Homes website, Facebook page or contact Lindquist at [email protected].
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