The NNHC Program is a single family program offered by Neighborhood Nonprofit in both Cache and Box Elder Counties (it is available through other agencies in the rural areas of the state.) The program helps very low and low-income households become homeowners by participating in the construction of their homes, under the guidance of NNHC’s construction supervisor. Program benefits include reducing the purchase price of the home by as much as 25%, no down payment, reduced closing costs and owning an Energy Star rated home. Qualified families may also receive a reduced interest rate loan, with payments starting at $550 a month. The homes all have two-car attached garages, two baths, and range in size from 1,300 to 1,700 square feet. Materials used include architectural shingles; cultured stone; low-e vinyl windows, and other energy efficient features. Mortgage buy-down grants are available to qualified borrowers.
Here are some important points to know:
1) Mutual Self Help Housing is an affordable housing program that uses sweat equity to make housing affordable; participants build together in groups with technical assistance from NNC supervisors.
2) Construction experience is not necessary.
3) Participants must make less than 80% of the area median income to qualify for the program (this amount is determined by HUD and varies by county.)
4) Participants help build their own homes; subscontractors are used for code work and other specific tasks.
5) Neighborhood Nonprofit either develops or purchases affordable lots and handles all construction management tasks.
6) Participants can qualify for a reduced interest rate loan from USDA Rural Development; house payments start at $550
7) Participants may also obtain closing cost assistance and other grants to reduce the cost of their home (NNHC currently has up to $7,000 available to help reduce the purchase price of the home).
8) Families can select from a variety of house plans (18 are available through NNHC) that range from 1300 to 1700 square feet, plus a 2-car attached garage
9) The homes are Energy Star rated and include features such as low-E windows; wood flooring in the entry, kitchen and dining areas; customized closets; exterior rock work, sprinkler systems and landscaped yards
10) Families work 30-35 hours a week until all of the homes are completed. The entire group moves in when the homes are done
11) The program provides a chance to learn new skills that can be used throughout their lives; it also creates strong bonds between neighbors.
HomeChoice: Homeownership Opportunities for People with Disabilities
The Utah HomeChoice program is open to individuals with disabilities or families with a disabled family member; the disability must meet guidelines established by the Fair Housing Amendments Act. Those households earning 80 percent or less of the area median income may be eligible for direct down payment/closing cost assistance and low-interest rate mortgages, ranging from 1% to 3%, funded by the Oleen Walker Housing Loan Fund. The program can be used for new construction, existing home purchase, or the refinance of existing mortgages. HomeChoice offers the following benefits:
1) Lower monthly house payments due to a lower overall interest rate and no monthly mortgage insurance.
2) Higher qualifying debt-to-income ratios
3) Options for down payment amounts and sources; borrowers must contribute a minimum of $500 toward the down payment
4) Flexibility on credit histories; nontraditional credit is accepted
5) Sources of borrower income can include wages, public and private disability benefits, Section 8 vouchers and income from trusts
6) Nontaxable benefits may be “grossed up” by a factor that reflects the tax savings to the borrower, providing greater “borrowing power” for the purchase of a home
7) Parents can act as non-occupant co-signers for a child with a disability
8) Current homeowners may refinance an existing mortgage to reduce their monthly house payment
If you’re interested …
Interested persons should call the HomeChoice Hotline at 1-866-493-4500 and leave their contact information. Information will be mailed out regarding the program, as well as an invitation to attend an orientation meeting. This meeting will explain the program in detail and enrollment packets will be provided for those who wish to participate. The program also provides first-time homebuyer and financial counseling to participants and one-on-one assistance with a HomeChoice Specialist. There is no cost to participants for these services.
For more information, go to Neighborhood Nonprofit Contact Information at (435) 753-1112 or go online at www.nnhc.net. Offices are located at 95 West Golf Course Road, Suite 104 in Logan Utah.