As housing costs continue to rise across the country, the Southeastern Regional Development Agency looks to help residents of the Castle Country fulfill the dream of home ownership through the Mutual Self-Help Program. Housing Program Manager Chris Allred joined the KOAL newsroom to explain the program and what it looks to achieve.
“The Mutual Self-Help Program uses a barn-raising mentality to get a group of participants together and build each other’s homes as a group. And then through USDA, we’re able to provide a longer-term loan, a mortgage loan that starts as a construction loan and then converts into a mortgage loan,” explained Allred. “After that, we can also add a subsidy to it to help lower that mortgage payment. Then, the USDA’s loans are always under market value in terms of interest rates. And so it’s outstanding; it fluctuates a little bit from month to month, but as far as interest rates go, it’s a great program that really helps these rural communities build amazing homes.”
The program brings participants together to aid in the construction of each other’s homes. “The participants are expected to do about 65% of the labor. Their schedule looks like three hours every day after work and then a Saturday. We can make up time on Sundays or any days that you might have off along with that. This is sweat equity that you’re putting into the home. And so that evolves into actual equity into the home,” said Allred.
Being an assistance program, there are eligibility requirements based on income and other factors,” it fluctuates a little bit based on income. We use HUD income guidelines to qualify as far as the household income goes. For example, right now, for a family of four, the range that I’m looking at to be able to get a loan approved is around $40,000 to $80,000. Then, I need a credit score of 640 or above. And then we need to keep that debt-to-income ratio below about 41%.”
Speaking on the community’s benefit of this program, Allred stated,” We have some participants who have really important jobs in our community, and we need to keep them here. We need to have that experience, not to mention it beautifies the area. These homes are amazing. They look great when they’re done. And because folks have invested all of that work into them, they like to keep them nice.”
To participate in this program, visit SERDA at 252 South Fairgrounds Road or call Allred at 435-613-0036.
“I just really appreciate the opportunity,” said Allred, closing the conversation. “I have some openings right now here in Carbon County, and I’m also looking for applications to be on our waitlist.”
More information on the Mutual Self-Help Program and other programs offered through SERDA can be viewed online at SERDA.Utah.Gov.