The Self Help Program is Ready to Assist Households in Purchasing or Building a Home


The Southeastern Utah Association of Local Governments (SEUALG) currently administer the USDA Self Help 502 Direct Loan Program in Carbon and Emery counties. The program offers 100 percent financing for the purchase of a new home that is in need of rehabilitation anywhere between the price range of $15,000 to $40,000.

The area loan limit is $265,400, meaning that if a purchase price is $150,000 and the home needs care in the aforementioned price range, SEUALG could lend anywhere from $165,000 to $190,000.

The loan amount is amortized over a 33 to 38 year period with a current rate of 3.25 percent. The loan has no origination or loan fees, as well as no mortgage insurance or guarantee fees, however; there are income limitations. Households of up to four have an income limit of $56,900. Households between five to eight individuals have an income limit of $75,100.

Upon acquiring the loan, the homeowner is required to do all repairs with the guidance and supervision of the construction supervisor. The supervisor will also estimate and purchase all the materials for the project.

“They end up with a good amount of sweat equity because they did the work, rather than paying a contractor,” stated Barbara Fausett with SEUALG.

The contract was also recently amended to include ground up construction, which is where a group of four or more families or households are approved to help one another build their homes within the same neighborhood. With the high increase in home prices, as well as the low housing stock available, it was discovered that the cost to build is now a competitive option to buying an already existing home.

“We want to bring affordable housing to Carbon and Emery counties and are excited about the new ground up construction option for the Self Help program,” Fausett concluded.

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