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A local community action agency is securing land contracts that will soon provide housing for five low- to moderate-income families through the U.S. Department of Agriculture's Rural Development Mutual Self-Help Housing Program, an agency spokeswoman said Friday.
Klare Ly, group coordinator for the Community Action Agency of Oklahoma and Canadian Counties' Mutual Self-Help Housing Program, said the program provides USDA loans coordinated through her agency to families who dream of home ownership, but who might not otherwise qualify for low-interest loans.
We have four families from Choctaw and one from Arcadia who qualify, and we are within a month away from buying land where we will build their homes, Ly said. One of the families includes a single mother with eight children who is a legal-permit resident from Ethiopia. She's very excited because this will be the first home she's ever owned.
She said an important aspect of the Mutual Self-Help Housing Program is the aspect of participants putting in their own sweat equity when constructing their home. An experienced construction supervisor will be on site to help participants and will help educate and coordinate with the families as they build their homes. The majority of the work will be conducted by licensed construction contractors.
They physically help build the homes, Ly said. If they are disabled, then they can have other people volunteer in their place. The future homeowners must work a minimum of 15 hours a week up to 30 hours a week. Participants take turns helping each other build one another's houses.
Income guidelines to participate in the Mutual Self-Help Housing Program state that a single person cannot make more than $30,150 a year for a one-person family. A family of two cannot make more than $34,500 annually, a family of three cannot make more than $38,800 annually and a family of four can't make more than $43,100 a year.
We look at their rental history, payment history, do credit checks and counsel them on cleaning up their credit, Ly said. This is a home loan from the government. We look for what mortgage lenders look for in qualifying the applicants. Their home will consist of the purchased land and construction cost of the house.
She said two of the five potential participants have qualified for the program's low-interest loan rates, including one family that qualified for the lowest rate of 1 percent and another who qualified for a 2.3-percent rate. The cost of the homes will be from $69,000 to $110,000 with market values from $86,000 to $132,000.
The sweat equity helps keep their mortgage payments low, Ly said. This is the first time that a group in Oklahoma County is participating in this national USDA program. We are still taking applications from people who are dreaming of a home; there is still plenty of time to join in the construction boom.
Other Self-Help eligible areas include Luther, Jones, Dungee, Nicoma Park, Harrah, Newalla, Piedmont, Oklahoma City, Okarche, Geary, Calumet and Union City.
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