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 or groups. Homeowners build "sweat equity" by contributing 65 percent of the construction labor that can save up to $15,000 of the cost for similar housing - making homes more affordable, lowering monthly payments and eliminating down payments.
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2. 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.
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3. Is there a waiting list?

Yes, there can be for some areas. Eligible applicants are put into groups according to the area they want to live in and the date their completed application is approved. Groups may wait for property to be developed. Construction begins once property is ready and there are six to 10 households approved.
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4. How much training will we receive?

Each household is placed into a construction group that completes four or five classes to receive instruction and training on: 1) how the group will work together; 2) an introduction to the construction process; 3) an overview of property taxes, homeowner insurance, household budgeting and credit management; and 4) the construction and mortgage loans and loan documents. Even if you have never used tools before, you will learn how to do carpentry, concrete, painting, landscaping and more. Licensed contractors and skilled laborers will provide the complete the electrical, gutters, plumbing, roof, drywall and flooring tasks.
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5. What is "sweat equity"

Participating households provide 65 percent of the labor to build their home, which amounts to 35 hours per week per household for approximately 10 months. This "sweat equity" is typically valued at $10,000 to $15,000 depending on the size, location of the home and current real estate market conditions. This investment satisfies the requirement for a down payment and helps lower the amount of mortgage required helping to keep monthly payments affordable.
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6. What is the interest rate on the mortgage?

Interest rates vary according to market conditions, and they may be subsidized to help keep monthly payments affordable. Some interest rates may adjust as the household income changes, but will never rise above the maximum quoted when the loan closes. Actual interest rates currently range between one and five percent. The original participating household may need to repay a portion of any subsidy received depending on its type and their duration of ownership.
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7. How much will my house payment be?

The amount of your monthly payment will vary based on the size of your home, the value of your property, current mortgage interest rates and other terms of your loan. Every household will receive an estimate of their expected monthly payment before they commit to participation in the program, but we cannot say exactly what your payment will be without more information. Northwest Housing Development has helped more than 750 households afford a brand new home and we are confident we can do the same for you.
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8. Can I qualify for a loan if I have had credit problems?

It depends on the type of problems, the circumstances involved and your current situation. This program was created to help low-income families with good credit. You are welcome to contact us to see if you qualify now or to learn how to improve your situation and qualify later. Learn more about qualifying for a loan.
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9. 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 and boots, and approximately $400 for a one-year premium for course of construction insurance, etc. Prior to moving into your new home, you will need an additional $400+/- for your first year's homeowners insurance.
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10. May I sell my home?

Yes - you may sell your home any time after occupancy.
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11. How long does the application process take?

Once your application is complete and accepted, the wait varies by the area where you want to live. You may wait a couple weeks or months until a group of six to 10 households are ready to start building in your development. It will take longer if Northwest Housing Development does not own land in the area where you wish to live. The construction phase begins when your group's loans close and the loan funds are disbursed.
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12. How long will it take to build my house and how much time will I be required to commit each week?

Participating households can expect that construction will take 10 to 12 months during which each household must complete 35 hours of productive labor every week until all the homes in their group are completed. Some of each household's hours may be completed by adult volunteers.
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13. Do I need construction experience?

No construction experience is needed. Everyone receives instruction and training before and during construction. We will teach you how to read blue prints, use construction tools and equipment, and complete every construction task you will need to do.
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14. Do I need to own my own tools?

Each household will receive a list of tools that they need to provide throughout the construction process. Some tools will be provided.
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15. What kind of quality can I expect from a home I build myself?

Northwest Housing Development provides a construction supervisor who is available on site to help guide you throughout the construction of your home. The construction supervisor also conducts inspections at key points throughout the process to ensure the quality of your home. Final inspections are provided by Northwest Housing Development, the lender and the building inspector for the jurisdiction in which your home is built.

Each home constructed by NHD's mutual self-help program is covered by a Technical Assistance Limited Warranty that specifies construction standards and tolerances. This document also describes the responsibilities of NHD and the participant, and the procedures to correct any construction or material defects within one year after final inspection.

Several building inspectors have made unsolicited comments suggesting that homes built by our construction groups are constructed as well or better than homes built by commercial contractors. They attribute this to our many inspections and the pride each household takes in building their own home.
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16. May I pick my house plan?

House plans are specific to each development. You will have choices of roof styles, siding and colors.
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17. May I pick the location of my house?

Northwest Housing Development locates the property on which a building group of six to 10 households may build a community of homes adjacent to each other. Participants select their home sites within the community based on the date of application submission and approval.
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