HURRICANE – Self-Help Homes is looking for families willing to work hard in exchange for an affordable home with low upfront costs.
With the help of the U.S. Department of Agriculture’s Rural Development’s Mutual Self-Help Housing program, families can help build their own homes and benefit from low-interest rates, small down payments and monthly subsidies. Closing costs are worked into the loan, and mortgages are 33 or 38 years.
“The down payment is only $750, plus a few hundred in tool costs, credit reports and homeowner’s education” Julie Lindquist, spokesperson for Self-Help Homes, said in a press release. “For families who are willing to work really hard, it’s a wonderful program.”
Families must meet USDA-RD’s qualifications including income, credit score, debt ratio and payment shock.
Self-Help Homes, a non-profit, manages the self-help program in Washington County. Currently, homes are being built in Hurricane. Past groups have built in Ivins, Toquerville and LaVerkin.
“We can’t build in St. George or Washington City,” Lindquist said. “Because the program is through Rural Development, we have to stay in areas that are still rural. And property in Ivins has become too expensive.”
Self-Help Homes buys and develops property, finds applicants and helps submit full mortgage applications to USDA-RD. Then, groups of families build together under the direction of a construction supervisor, Lindquist said.
Families and their volunteers must contribute at least 35 hours of labor each week, working together as a team to frame and sheet the houses, put up drywall, install cabinets and do the painting and finish work.
“Our families only do labor; everything that requires a license is contracted out,” Lindquist said., including site preparation, footings and foundations, electrical, HVAC, plumbing, etc.
Self-Help Homes in Southern Utah is always taking applications and the waiting list is relatively short.
To apply for the program, families need to review the qualifications and then fill out a “pre-application.” If everything looks good, they are put on a waiting list.
The estimated wait time for families on the waiting list is 9-12 months, although exact dates are hard to predict.
To qualify, families need to earn less than the USDA income limits and also earn enough to pay the mortgage. In addition, there are credit, debt and payment shock requirements.
The income limit for a family of 1-4 is $70,250; for a family of five or more, the limit is $92,750.
“High priority” families, those classified as “very low income” by the USDA, are given preference and may be able to build sooner. Families of 5 or more, earning between about $50,000 and $57,950, are considered high priority.
The total monthly mortgage amount depends on a family’s income and situation, Lindquist said.
“We’re seeing mortgages that are less than local rental rates, including insurance and property taxes,” she said.
In Washington County, the Mutual Self-Help Housing program is administered by Self-Help Homes, a 501(c)(3) nonprofit charitable that has already overseen the construction of more than 600 homes in Utah, Wasatch, and Washington counties.
For more information about the program and how to apply, visit the Self-Help Homes website, see the Facebook page or contact Julie Lindquist at 435-429-1048 or [email protected].