- Homeownership Opportunity
- Statewide
Summary
The USDA Rural Development Section 523 Self-Help Housing Program provides technical assistance grants to experienced, non-profit developers to offer training, supervision, and technical assistance to families participating in the Self-Help Housing Program. Under this program, low-income borrowers work together under the guidance of a nonprofit public housing entity (self-help grantee) to build each other's homes. The program provides two types of loans to purchase and develop housing sites: Section 523 loans are used to acquire and develop sites only for housing to be constructed using the Self-Help method. The program requires that of the families served, 40% must be at or below 50% of the median income.
Eligibility Requirements
- The home being built must be located in a rural area as designated by the USDA.
The applicant(s) must have a household income that is at or below the very low-income limit for their area. Income limits vary by location and household size. - The applicant(s) must be U.S. citizens or legal permanent residents.
- The applicant(s) must be willing and able to participate in a group of 6 to 12 families to build their own homes with mutual support and assistance.
- The applicant(s) must be willing to contribute at least 65% of the labor needed to build their own homes, which is known as sweat equity.
- The applicant(s) must meet the USDA's credit and underwriting standards and be able to repay the loan.
- The applicant(s) must also comply with all program requirements and guidelines, which may include submission of a complete application, payment of any required application fees, and submission of all required documentation.
- It's important to note that meeting the above requirements does not guarantee acceptance into the program, as funding is limited and subject to availability.
Contact Information
USDA Rural Development
1221 College Park Drive, Suite 200
Dover, DE 19904
Phone: 302-857-3580