Mutual Self-Help Housing
In partnership with USDA Rural Development and Alaska Housing Finance Corporation, RurAL CAP’s Mutual Self-Help Housing program gives first time homebuyers an opportunity for affordable home ownership with no down payment.
The program operates on the principles of sweat equity. Groups of six to 12 participants build one another’s homes, working together under the direction and coaching of a RurAL CAP construction supervisor. These families must perform at least 65% of the labor and work at least 35 hours per week. Homebuyers work on all homes in the project, and no one moves in until all the homes are finished. Once completed, a community of single-family homes replaces the once vacant lot. The participants’ sweat equity eliminates the need for a down payment and reduces the size of their mortgage.
The building process enriches the families and the community. Families gain new skills, a home with little out-of-pocket expense, a sense of ownership, and affordable mortgage loans with interest as low as 1%, while communities gain an increase in property tax base, a vibrant neighborhood, and an economic boost via the purchase of local building material and the hiring of local subcontractors.
RurAL CAP is a certified mortgage loan originator: NMLS #396638; Mi’shell French - NMLS #375937