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PROGRAMS |
Self-Help Housing |
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HOME |
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4 Bedroom, 2 1 Car Garage, Full
Basement
3 Bedroom, 2 2 Car Garage, Full
Basement
3 Bedroom, 2 2 Car Garage, Full
Basement
3 Bedroom, 2 2 Car Garage, Full
Basement
3 Bedroom, 2 2 Car Garage, Full
Basement |
The Self-Help
Housing Program is a program designed to assist income eligible participants
in building their own homes. The
participants are required to work with a group of participants and assist
each other in the construction of their homes. For more
information on this program contact: Linda Dickerson
or Leigh Aguayo at OR Email Us: Linda Dickerson
- ldickerson@eastmoaa.org Leigh Aguayo – laguayo@eastmoaa.org Who Is
Eligible For The Program? To be eligible
for this program an applicant must… |
Have
low or very-low income, according to the HUD guidelines (for example, a
family of three must have an adjusted income of less than $30,950.00 per year |
Have
a sufficient enough income to afford the costs of owning a home (Minimum
income of $10,000.00 per year) |
Have
less than 41% of their income going to debt payments (including the projected
house payments) |
Have
an acceptable credit history |
Be
willing to build their home in |
Anyone
can build a home: Single, married, divorced, widowed, children, no children,
anyone 18 years or older. What will be
included in your home? |
Energy
Efficient Construction |
1
or 2 Car Garage |
2,
3, or 4 Bedroom Floor Plans |
Decoration
Chooses – Decide on your own personal Siding, Roof, Carpet, Tile, Cabinet and
Countertop colors |
Vinyl
Siding, Maintenance Free Exterior |
Range,
Refrigerator, Dishwasher, Washer and Dryer |
Central
Heat and Air Where Does
The Financing To Build The Home Come From? Construction
funds usually come from the government in the form of a loan. The government lending agency is called
Rural Development (formerly known as Farmers Home Administration-FHA) A Rural Development loan differs from a
that of a typical bank loan: |
No
down payment is required |
The
interest in the loan amount is subsidized for low and very low income
borrowers |
The
loan is repaid over 33 to 38 years |
The
borrower receives “Sweat Equity” for the work they do during construction What Kind
of Credit Does An Applicant Need To Be Eligible? Rural
Development, the government lending agency, has a policy of approving only
these applicants with acceptable credit histories. The following
could keep an applicant from being approved |
Judgments
which have not been paid |
Debts
in collection on which regular payments have not been paid |
Other
past due debts on which regular payments have not been paid |
More
than two debts payments over 30 days late within the past year. Debt problems
which are being reasonable disputed or which resulted from special temporary
circumstances such as illness or loss of income are not taken into
consideration when applicants are evaluated. What Is
The First Step In Building A House Through This Program? The first step
is to come into or call out office for initial eligibility
determination. If you meet the basic
eligibility criteria, a formal application can then be made. How Do
The Self-Help Groups Work? Clients are
required to participate a minimum of 30 hours per week towards the
construction of the homes. Participants are organized into Self-Help
construction groups of four to six families. They work in groups in order to
build the houses more quickly. Groups
hold regular meetings to better coordinate their work. EMAA provides trained supervision to the
participants to assist in the construction of the homes. Group members are
required to work on each other’s home, and they receive the same credit for
their work regardless of whether they’re working on their own home or on
homes of other group members. All
members of a group move into their homes at the same time, so the order of
construction does not matter. What Is
“Sweat Equity”? |
Sweat
Equity is equity homeowners earn by working to help build their home and the
homes of others in their self-help group Equity is the
value of property beyond the amount owed on it. Normally, homeowners build up equity in
their homes by making a down payment and by making house payments. Self-Help homeowners, however, also build
up equity in their homes through the work they do during construction. The amount of “sweat equity” earned is
equal to the amount of construction costs.
Construction costs are reduced by using contributed labor rather than
paid labor. Although sweat equity
varies from house to house, self-help homeowners typically realize several
thousand dollars of sweat equity. What Is
The Role Of East Missouri Action Agency, Inc? EMAA is a
non-profit organization that provides technical assistance to eligible
participants in RD’s self-help housing program. We assist self-help participants from the
application phase through the completion of construction on their homes. EMAA assists
clients in applying for RD loans, prepares the necessary documentation to
close the loan, organizes participants in self-help groups, supervises the
contributed labor, and supervises the work of outside contractors. Our goal is to do everything we can to help
our clients acquire quality homes through the self-help program. What
Risks Are Involved In Participating In The Program? Because the
construction of these homes is financed by a loan it is extremely important that
borrowers make their regular house payments to Rural Development. Homeowners who fall behind on their
payments risk having their homes foreclosed on. Foreclosure involves having one’s home
taken away and sold with the borrower still owing to Rural Development any
difference in the amount they owe and the amount for which their home is
sold. Persons considering building a
house through this program should, therefore, carefully consider whether they
want to take on the financial responsibility of the home ownership. Positive
Aspects Of Self-Help Housing! Family Life
Enhancements:
To Apply for our program fill out the Self
Help Housing application and authorization
to release informatoon form and return to the office. |
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East
Missouri Action Agency, Inc. NOT
copyrighted—feel free to use to help alleviate poverty. |
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