Financial Questions about Mutual Self Help Housing

What are the expenses that the new owners have to meet when they move to their new houses?

They will not make any payment until 30 days after the final house inspection. After that period, the monthly payments that each new owner has to pay will be:

  • Monthly loan payment (property taxes and insurance).
  • Utilities (gas, water, electricity and telephone.)
  • Ground lease fees
  • House maintenance and repairs as needed.

Are there any costs before construction starts?

All households will have to pay for a credit report, the cost of some hand tools, and pay in advance for a Course of Construction insurance policy during the build process.

Who will borrow the money and what are the terms of the loan?

USDA Rural Development will loan the money. Loans will be based on the prevailing rate. Available subsidies could reduce that rate as low as 1%. The period of the loan is 33 or 38 years. The kind of subsidy and the period of time to pay the loan will depend on the size and annual income family that will live in the house.

Can the new owner sell the house and to whom they can sell it?

Yes. Homeowners agree to resell their homes to other low-income qualified buyers and follow any other resale restrictions that may exist in documents they have signed such as the Land Lease Agreement or Resale Restriction Covenants. Each development is unique; it is important that participants understand before they enter the program what resale restrictions may be in place for the home they will purchase and build.

Call Roxana at 734-2355 for more information. (Se habla español)