The Aspen model at Hidden Creek.

Frequently Asked Questions

Q: What is Self-Help Housing?
Q: How did this program start?
Q: Where are the houses being built?
Q: What are the requirements to qualify?
Q: What is the most I can make and still qualify?
Q: I make a little more than the indicated maximum income level.  Is there any way I can still qualify?
Q:  What is considered good credit?
Q:  Who is considered a first-time homebuyer?
Q:  How much money do I need to put down?
Q:  How does the financing work?
Q:  What type of work would I have to do?
Q:  I am a single mom with no experience in building.  Can I still qualify?
Q:  How much work is required on the homes by family members?
Q:  What is the "group"?
Q:  What is the role of Florida Home Partnership?
Q:  What are the houses like?
Q:  Are there limitations to what I can do with my house?
Q:  How do I apply?
Q:  What if I have other questions?

Q: What is Self-Help Housing?
A: The Mutual Self-Help Housing Program allows first-time homebuyers to purchase a home of their own with no cash down payment. Through the program, low-income homebuyers exchange 600 hours of labor, commonly called “sweat equity,” for a down payment on a newly constructed home. Self-Help Program participants work together with other families in a group sharing in all phases of their home’s construction. The labor involves all types of unskilled and semi-skilled construction activities that substantially reduce the construction costs while instilling pride in ownership.
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Q: How did this program start?
A: The “sweat-equity” concept is not new. Organized mutual self-help started with the Quakers. In Quaker communities, neighbors would work together to build barns, homes, and other out-buildings quickly and efficiently with the help of all the neighboring farmers. Neighbors supplied labor to help each other.
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In the early 1960’s, the United States Department of Agriculture was determined to find ways to improve the housing problems facing Americans living in rural communities.  The USDA saw merit in this type of “community building” in which the energies and dreams of families were harnessed in a way that mirrored the concept of “barn-raisings.” The USDA developed the 502 Direct Loan that provides a source of financing to pay for land, materials, supplies, and technical labor not supplied by the families.
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Q: Where are the houses being built?
A: The USDA requires that the homes be built in rural areas. In Tampa Bay, the areas directly surrounding Tampa, Temple Terrace, Brandon, and Plant City are considered “urban” and are not eligible for this program. Florida Home Partnership is currently building in Ruskin and Wimauma in Hillsborough County, and in Dade City in Pasco County.  We are always looking for available land to develop new communities in designated areas.
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Q: What are the requirements to qualify?
A: To qualify for the Mutual Self-Help Housing Program you must be a first-time buyer, have good or repairable credit and your total household income must be under 80% of the County’s median income. You must also be willing to contribute 600 hours of labor to the construction of your new home. Applicants must also have a minimum of two years’ good employment and rental histories.
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Q: What is the most I can make and still qualify?
A:  It depends on household size, and maximum income levels are adjusted each year.
 

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Q:  I make a little more than the indicated maximum income level.  Is there any way I can still qualify?
A: A limited number of building lots are set aside for clients with incomes over 80% of the median income limits. These homes have different labor requirements, separate pricing, and special financing. Some households may still qualify for down payment assistance.
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Q:  What is considered good credit?
A:  In most cases good credit means that you have established a history of paying your debts on time.  It also means that you have no unpaid bills that are in collection.  The lender, USDA, is lending you a large sum of money to purchase this home, and they want to know that you are responsible enough with your current bills to show that you will pay your mortgage on time. Your long-term debts such as car payments, credit cards, furniture rentals, student loans, etc. must be current and fit within certain income ratios.

In certain situations, the lender will look at those with less than perfect credit.  If, for example, you were sick, went through a divorce, or faced other unusual events beyond your control, and your credit got tarnished, the lender will consider making the loan once they are satisfied that this is an isolated incident that will not re-occur.  You may need to provide a written explanation.  Our team can help you work through credit issues.
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Q:  Who is considered a first-time homebuyer?
A:  A first-time homebuyer is someone who has either never owned a home before, OR has not owned a home for the last three years, unless you are a displaced homemaker.
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Q:  How much money do I need to put down?
A:  The “sweat-equity” part of this program means that you “sweat”, or do work, in exchange for equity.  There is no cash down payment needed to qualify.  Instead your labor is exchanged for your down payment.  However, all applicants must pay from $16 - $19 for credit reports, and approximately $800.00-$1300.00 for the first year’s homeowner’s insurance.  These fees are due prior to the time your application is submitted for approval, and all but the credit fees are refundable if your loan is not approved.
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Q:  How does the financing work?
A:    We have two organizations that currently offer financing on self-help homes – the USDA and Suncoast Schools Federal Credit Union.  Your loan specialist will help you determine the most beneficial option for you.  The loans will pay for the land, materials, supplies, and technical labor needed to construct your home.  You will begin to repay this loan (your mortgage) when you move into your house.


The USDA provides Section 502 Mutual Self-Help Housing Loans. USDA subsidizes these loans each month by providing payment assistance based on family size and income.  If you qualify to receive a subsidy, each year USDA will review your household income and determine the amount of subsidy to be utilized the coming year.  In some cases the payments are less than $500.00 per month for principal, interest, taxes and insurance.  Hillsborough County provides HOME and/or SHIP funds to cover closing costs, and in some cases gap or bridge financing to help put homeownership in the reach of applicants who could not otherwise qualify.  After moving into your home, you are responsible for paying quarterly assessments to the property owners’ association in your subdivision.
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Q:  What type of work would I have to do?
A:  The labor involves all types of unskilled and semi-skilled construction.  Florida Home Partnership’s construction coordinators will provide instruction and guidance through all phases of construction.  Highly skilled tasks are performed by professional subcontractors.
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Q:  I am a single mom with no experience in building.  Can I still qualify?
A:  A majority of our families have little or no construction experience.  This is not a problem.  Construction experience is helpful, but not necessary.   What is necessary is the desire to work on your home, and the homes in your group.  We have a highly experienced residential building team that provides knowledge and training to all applicants.  Often the more-experienced participants serve as leaders of the group, sharing the benefit of their expertise with the other families.
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Q:  How much work is required on the homes by family members?
A:  Typically USDA requires that each family contribute 600 hours labor during the 5-6 months it takes to build your home.  This equates to roughly 20 hours per week.  Labor can be supplied by adult members of your family over the age of 16.  Friends, church members, and others may help you complete your hours.  Typically two people could work 6 hours on Saturday (12 hours) and perhaps 2 hours each, two nights a week.  This would give you the needed hours.  The construction supervisor will work with each group to establish work schedules that meet the needs of the group, while meeting the criteria of USDA.
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Q:  What is the "group"?
A:  Our homes are built in groups ranging in size from 4 to 11 families, with the average being closer to 6 to 8 families.  The members of your group are your new neighbors. The group works together to construct each others' homes.  Each family signs a group agreement tjat omdocates that you will work on all the homes in your group, and group members will work on your home.  This is important because your work is done in exchange for your down payment.  Each group has a leader, and an assistant leader.  These leaders typically have more construction experience, and are able to answer questions when the supervisor is not present.
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Q:  What is the role of Florida Home Partnership?
A:  We are a non-profit organization funded by grants from USDA and Pasco and Hillsborough Counties.  Our mission is to provide outreach and recruiting functions to find interested applicants for the Self-Help Housing Program.  After we make a determination that an applicant is “eligible” we put together a complete loan docket and submit it to USDA for loan “underwriting” and approval.  Once the loan is approved we provide the technical assistance necessary for you to build your home.  We are also available for a limited amount of counseling for homeownership (bad credit, under employment) and related issues.  Also, should an owner have problems making payments on his or her new home, we will help the family explore their options.
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Q:  What are the houses like?
A:  We currently offer 11 home designs, all built to Energy-Star standards. The homes feature 3 to 4 bedrooms with 2 bathrooms and 1 or 2 car garages.  They are built with concrete block, and other “construction-grade” materials.  Construction-grade means not the best, not the cheapest, but materials designed to give average life expectancy and performance.  Homes are designed to be efficient, functional, and give many years of service with proper maintenance.
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Q:  Are there limitations to what I can do with my house?
A:  Yes and No.  The homes are modest homes, and they are designed to meet the long-term needs of applicants and their families.  You have a choice of finish colors (within certain guidelines).  There are a variety of paint colors, carpet and vinyl flooring styles, and cabinet finishes you may choose from.  During the construction process we tend to require conformity to commonly accepted building products and procedures.
Once your home is completed, it is your house to do with as you please.  The USDA is the mortgage lender on your house, so they have certain requirements that must be followed.  All lenders have general requirements for maintenance, continued insurance, etc.  Usually, the homes must be owner occupied, and not available for lease or rental.
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Q:  How do I apply?
A:  You must make an appointment with one of our Loan Specialists.  Please bring all the items listed on the Required Documents page with you to your appointment.
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Q:  What if I have other questions?
A:  Please call Florida Home Partnership at 813-672-7889 (Hillsborough) or 352-521-0686 (Pasco).
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