Self Help Housing

Housing Program? The Mutual Self-Help Housing Program makes homeownership a reality for many who think it’s out of their reach! Homeowners cooperatively construct their homes in their assigned group. Members provide 65% of the construction labor that goes into building their home. The construction labor provided by the families is known as “Sweat Equity” which is used to replace the down payment of the home. Therefore, no down payment is required and most participants in the Mutual Self-Help Program pay less for their mortgage payments than they previously were paying in rent and can get a tax deduction for the interest paid on their mortgages.

The United States Department of Agriculture (USDA) provides the loan needed to cover the costs for land acquisition, construction materials, and any subcontracting that is needed to complete the construction of the homes.

640 Credit Score or Higher, or strong alternative credit

80% of the Area Median Income or lower

Work a minimum of 35 hours a week for 10-12 months (Sundays optional)

Must Occupy the Home as Your Permanent Resident

Be a permanent resident or citizen

Not have owned a home in the last 3 years

Participants will need approximately $405 to begin construction. This includes:

$30 credit check fee for pre-eligibility

$75 fee for homebuyer education

$300 fee for your toolbox that can be paid in payments

Each family is expected to contribute 35 hours a week to the building group. As a result, every family will have contributed at least 1200 hours to the construction of the building group’s homes. “Family hours” includes the labor of all owners, any child 16 years of age or older, and 1-3 approved helpers (optional).

It largely depends on how efficiently a building group works together. Usually the construction takes between 9-12 months.

NeighborWorks has a variety of house plans available in each project area. Based on applicant’s loan amount and availability of each house plan each family will be allowed to select the house plan that they would prefer.

Yes. NeighborWorks will provide a wide selection of finished products that we will allow families to choose from. Our construction supervision will have some samples of our products for the family to view and select.

Yes. However, there is no reduction in the labor commitment for these families. There have been several single participants that have been able to complete the program in the past.

Unfortunately, the program requires that the applicant must be a permanent resident or a citizen in order to be eligible for the program.

These are not custom homes and are required to be built according the USDA-Rural Development approved plans. Once you move into your home, you will be allowed to make any changes you would like.

Children 12 and younger are not allowed at the work site to protect their safety. Children 14 to 16 are not allowed to help build the house. Children 16 years and older are allowed to help build the houses. They must be at least 18 years old to use any power tools.

No. Each participant family is required to share the labor on all homes within the group. This labor sharing agreement is a fundamental principle of the program.

Yes. However, there is no reduction in the labor requirement for the participant’s family. If no member of the household can participate, the USDA State Director has to waive this requirement for household members and the household must find other substitutes (family members, friends, etc.) to fulfill their hour requirement.

Yes. However, you are still required to repay the money you borrowed.

Families are required to enter into a contract with each other to share the labor on all homes with the group since the program aims to build stronger communities through the families shared labor. Therefore, families can move into their homes as soon as all families in the working group finish building their homes.