ST. GEORGE — Self-Help Homes is looking for qualified families for a sweat equity program that helps families achieve their dreams of owning a home.
With the Department of Agriculture’s Mutual Self-Help Housing program, families help build their own homes and the homes of their neighbors.
The program offers very low interest rates and down payments, in addition to monthly subsidies. Closing costs are worked into the loan, and the down payment is only $750, according to a press release issued by Self-Help Homes of Southern Utah.
“The out-of-pocket costs for our families are really low,” Self-Help Homes spokesperson Julie Lindquist said in a press release. “For families with stable income who are willing to work hard, it’s an incredible opportunity to own their own homes.”
Self-Help Homes administers the Mutual Self-Help Housing program in Washington and Wasatch counties. Currently, Self-Help Homes is building in the Hurricane Heights area of Hurricane. The homes are single-level and southwestern. Future groups will also be in Hurricane.
To qualify for the program, families of one to four can earn up to $70,250 and still qualify for the program; families of five or more can earn up to $92,750.
“Right now, we really need ‘high priority’ families,” Lindquist said. “These are families of five or more earning $52,000 to $57,950 and who also meet all the other qualifications.”
Families must also earn enough to show they can pay a mortgage. This is generally about $50,000- $52,000.
The estimated wait time for qualified families is 12-18 months; however, high-priority families will likely be able to build sooner, she said.
To qualify for the program, families can’t own property, must have credit scores over 640, a debt-to-income ratio of 42% or lower and be paying at least $800-$900 per month in rent.
Qualifying families must commit to putting in at least 35 hours per week to work on their homes. The “sweat equity” is considered to be the downpayment.
Family members who are on the mortgage must provide at least half of the 35 hours, but the other half can be provided by friends and family members. At least one person on the loan must work Saturday from 8 a.m. to 2 p.m.
“That’s when the supervisor teaches skills, goes over safety procedures and makes assignments for the week,” Lindquist said.
Getting the 35 hours per week can be tough, but it is possible, she said. Most families put in a long day on Saturday, then work at least two more days or evenings during the week. The hours are flexible, so families can accommodate their own employment schedules.
After completing all the required paperwork, getting USDA approval and closing on their loans, small groups of families work together to build each other’s homes.
It takes approximately eight to 10 months to complete the homes. All the families in the group work together to finish all the homes, and no one can move in until all the homes are finished.
“That’s another great thing about this program,” Lindquist said. “They’re literally building their neighborhood and also getting to know their neighbors while they build.”
Self-Help Homes is a 501(c)(3) nonprofit headquartered in Provo, with an office in St. George. Self-Help Homes has been in operation for 24 years.
Self-Help Homes has facilitated more than 600 homes being built in Utah, Wasatch, Juab and Washington counties.
“With housing costs so high all over Utah, this program is a wonderful way for qualified families to achieve the American dream of home ownership,” Lindquist said.
“The mortgages include property taxes and homeowners’ insurance, and the payment is often less than they have been paying in rent.”
To get started, interested families should check to see if they might qualify and then fill out a pre-application on the Self-Help Homes website.
For more information about program qualifications and how to apply in Washington County, see the Self-Help Homes website, Facebook page or contact Julie Lindquist at [email protected].