FAQ's

Click on any question to see the answer or read all the questions and answer below.

General Questions
1. What is mutual self help housing?
2. Who is Northwest Housing Development?
3. What kind of house can I expect?
4. Is the program for families and married couples only?
5. May I pick my house plan?

Financial Questions
6. What is "Sweat Equity"?
7. What is the interest rate on the mortgage?
8. How much will my house payment be?
9. Can I qualify for a loan if I've had credit problems?
10. How much cash out of pocket will I need?
11. May I sell my home?

Questions About the Process
12. Is there a long waiting list?
13. How long does the application process take?
14. May I pick the location of my house?
15. How long will it take to build my house and how much time will I be required to commit each week?
16. Do I need construction experience?
17. Do I need to own my own tools?

1. What is mutual self help housing?
Mutual self help housing is a federal program to assist low income families to own their own home. Participants agree to help each other build their homes and form building cooperatives. Homeowners build "sweat equity" by contributing 65% of the construction labor. This saves $10,000 - $15,000 on the cost of similar housing - making homes more affordable, lowering monthly payments and eliminating down payments. Click here to learn more about self help housing.

2. What is Northwest Housing Development?
A non-profit corporation established in 1969 and funded by US Department of Agriculture Rural Development, Northwest Housing Development assists low income households who have good credit to get low income loans. We provide technical assistance by organizing groups of households into building groups, finding suitable building lots, providing building expertise and teaching the skills necessary to complete each house in the group. We also order materials, assist in hiring contractors and assist in the accounting of the loans and process bills during construction. Learn more.

3. What Kind of House Can I Expect?
Homes are modest in size, design and cost. Homes are 1 and 2 story, wood-framed with gas or electric heat and an attached garage. The size of your home depends upon the number of people in your household, your lot size and house plans available through Northwest Housing Development. Three, four and five bedroom plans available. The living area will generally not exceed 1446 square feet. Choices of siding, roof styles and colors are available.

4. Is the program for families and married couples only?
The Mutual Self-Help Program is for everyone that qualifies regardless of ethnicity, race, religion, or marital status.

5. May I pick my house plan?
There are a number of house plans available, each of which you may view in our office. We try to accommodate the plan you select, but we must consider what you can afford, the lot size, and the size of your household.

6. What is "Sweat Equity"?
Households provide 65% of the labor to build their home. Each household commits to working 35 hours per week for approximately ten months. Licensed contractors put in the electrical, flooring, gutters, plumbing and roof.

7. What is the interest rate on the mortgage?
The interest rate varies. Interest rates are usually subsidized. When a home is sold a portion of the subsidy may have to be repaid, depending on how long the home was owned.

8. How much will my house payment be?
That is a tough question to answer here, because your interest rate (somewhere between 1% and just over 6%) is based on your income. In fact as your income changes so may your interest rate, but never less than 1% and never more than the maximum rate at the time of your loan closing, which was 6% at this time this was written. We cannot even venture to guess at a number because there are so many variables, but we can say that we have helped over 700 families and individuals, afford brand new homes! We can give you a pretty good estimate of your monthly payment when we know your individual circumstances.

9. Can I qualify for a loan if I've had credit problems?
That depends on the type of problems, the circumstances involved and the current situation. This program was created to help low income families with good credit.
You're welcome to contact us to see if you qualify now or how you could improve your situation to qualify later. Learn more about qualifying for a loan.

10. How much cash out of pocket will I need?
Plan to have a couple hundred dollars saved for a credit report, some tools, weather protection clothes, boots, etc. Prior to moving into your new home you will need an additional $400+/- for your first year's homeowners insurance.

11. May I sell my home?
Yes - you may sell your home at any time after occupancy. You will not be able to get back into the program again for three years and, up to a point, the longer you stay in your new home the less subsidy you will be required to pay back.

12. Is there a long waiting list?
Yes, for some areas. Eligible applicants are put into groups according to the area they want to live in and the date of the original application. Groups may wait for property to be developed in the area they want to live in. Groups begin construction once property is ready and there are six to ten households approved.

13. How long does the application process take?
Once your application is accepted the wait is determined by the area you want to live in. You may wait a couple weeks or months until a group of six to ten households ready to start building in the development you've chosen. It will take longer if Northwest Housing Development doesn't own land in the area you wish to live.

14. May I pick the location of my house?
Northwest Housing Development locates property where building groups of six to ten households may build their homes adjacent to each other. It is difficult to find so many lots next to each other.

15. How long will it take to build my house and how much time will I be required to commit each week?
Generally you should anticipate 10 to 12 months construction time. Each week every Building Group Member household will be responsible for 35 hours of productive labor. You can use volunteers to help with some of those hours.

16. Do I need construction experience?
No construction experience is needed. Everyone receives construction training before and during construction. You'll learn everything from how to read blue prints, how to use construction tools and equipment and how to complete every construction task you're asked to do.

17. Do I need to own my own tools?
You'll receive a list of tools which you'll need. At that time you can purchase those that you don't yet have. Some tools will be provided.

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