Warren County Balanced Housing Corporation (WCBHC),
WCBHC is in the process of applying to the U.S. Department of Agriculture, Rural Development Division, for Section 523 Technical Assistance funding to undertake a "Mutual Self-Help Housing Loan Program." This program is used primarily to help low- and very low-income households construct their own homes. The program is targeted to families who are unable to buy clean, safe housing through conventional methods. Families participating in a mutual self-help project perform approximately 65 percent of the construction labor on each other's homes under qualified supervision. The savings from the reduction in labor costs allows otherwise ineligible families to qualify for their loans. The homes constructed must be modest in size, design, and cost, and must meet national building codes adopted by the State of Ohio and RHS thermal and site standards. When completed, each family could have as much as twenty percent equity in their home.
Loan terms are for 33 years (38 for those with incomes below 60 percent of area median income and who cannot afford a 33-year term). The interest rate will vary depending upon the amount of subsidy (assistance) granted to the family. The amount of subsidy is determined by family income as a percentage of area median income, so that the family pays from 22 to 26 percent of their income for principal, interest, taxes, and insurance. Interest rates can be as low as 1 percent. There is no required cash down payment.
Anyone interested in learning more about participating in a Self-Help Housing Project is encouraged to contact WCBHC as soon as possible… placements are limited.
