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Frequently Asked Questions
What does Community Frameworks do?
How many families must there be in a self-help housing building group?
How many hours of labor does each family contribute to the construction of all the houses in the group?
When are the houses built?
How are the house plans selected?
Do all the houses in a self-help group need to be completed before any of the families can move in?
Can single parent households participate in a housing program?
What if I’ve never built a home before?
What kind of training do we receive to be ready to build our home?
What is the total length of the process?
Who can qualify for a self-help housing loan?
Are there subsidies available?
What do I earn by working on my house?
How long does it take to build a self-help home?
Can I just work on my own house?
Can I participate if I have already owned my own home?
How much cash will I need to participate?
Are the families with disabled or handicapped member eligible?
Can I sell my home after I build it?
Will I know right away if I qualify for a loan?
How long will it be before I can move into my new home?
How much will I need for a down payment?
Does this mean I won’t need any cash to get a loan? Are there any program costs?
Does the applicant have other responsibilities?
What are the terms of the loan?
Where may houses be located?
Does it matter how many other bills I have to pay?
What if I think my income is too low?
How can I determine if my income is adequate to repay a loan?
Can I get a loan if I am unemployed?
Will you find out about other credit I’ve had?
How can I find out if I’m eligible for a loan?
Will I need to get part of my financing from another source?
What do you mean by "good" credit?
What if I haven't worked at my current employer for two years?
How do you verify my income?
What is included in my monthly house payment?
How do I apply?
What does Community Frameworks do?
Community Frameworks is involved in several different self-help housing projects. While each program has unique features, Community Frameworks’ activities generally include the following:
1. Locating suitable building sites.
2. Recruiting families who are interested in sharing labor in the construction of each of their homes.
3. Assisting at meetings of the families during which the self-help program and subjects related to homeownership (such as taxes and insurance) are explained and discussed.
4. Assisting families in selecting plans for a house that meet their needs and are within their ability to repay.
5. Developing cost estimates for construction materials and contracts and schedules for any subcontracting that will be required.
6. Providing assistance in the preparation of applications for loans to cover the sale price of the home.
7. Supervising and training families in the proper construction of their homes.
8. Provide power tools necessary to build homes.
How many families must there be in a self-help housing building group?
Generally it takes at least 8, but not more than 12 families to make up a self-help housing building group.
How many hours of labor does each family contribute to the construction of all the houses in the group?
Each family contributes as much labor as is required to complete all the houses in the group. Depending on the style and project area of the homes, the amount of labor can be as little as 20 hours per week or as much as 40 hours per week. “Family” hours include the labor of all owners, any child 16 years of age or older, and approved helpers.
When are the houses built?
Since some family members in a self-help housing program must work during the day, work on the houses is typically completed in the evenings and on weekends. However, depending on the project area, work on the houses may happen during the weekdays.
How are the house plans selected?
Community Frameworks has a variety of house plans available in each project area. Typically, the size of the house depends upon the family size, what the family can afford, and the size of the building lot.
Do all the houses in a self-help group need to be completed before any of the families can move in?
Yes. Self-help housing involves sharing labor to complete a common goal. All of the members of a self-help group are expected to work on all of the homes, and every house will be completed within a few days or couple weeks of each other.
Can single parent households participate in a housing program?
Yes. However, there is no reduction in the labor commitment for these families. “Family” hours include the labor of all owners, any child 16 years of age or older, and approved helpers.
What if I’ve never built a home before?
To participate in our program, we don’t require or expect you to have any construction experience. We will provide the training necessary for you to safely perform the work that is required and we will have a supervisor on site any time you or your neighbors are working on your new homes. You will work together with eight to twelve other families to complete a group of up to twelve homes. All the families in a group will work on all the homes in the group. No family will move in until all homes in the group are completed.
What kind of training do we receive to be ready to build our home?
Community Frameworks’ families receive a wide variety of training. It starts with homebuyer education classes that introduce you to the benefits and responsibilities of homeownership. Safety training prepares you to work on the jobsite with construction tools. Finally, our site supervisor will train you on each construction task that you will be required to perform as part of your sweat equity commitment.
What is the total length of the process?
Once you have signed a purchase and sale agreement for your new home and construction starts, we expect the house to be completed and you will be able to move in about six month later (some building projects may take up to twelve months). You will start your sweat equity work about two to three weeks after construction starts and this work will continue until construction is completed.
Who can qualify for a self-help housing loan?
Generally, there are four qualifications:
1. Good credit status.
2. Stable income from employment or other sources.
3. Income not exceeding eligibility guidelines.
4. Ability and willingness to meet the labor requirement.
Each lending program may have different applicant criteria; so individual projects may have different eligibility standards.
Are there subsidies available?
Yes. Community Frameworks uses a variety of lending products designed to offer affordable monthly payments. These monies come from a variety of local, state and federal sources.
What do I earn by working on my house?
By working on your home, you earn your down payment. You also gain knowledge of the construction process.
How long does it take to build a self-help home?
It largely depends on how efficiently a building group works together. Usually, the construction period takes between 6 and 12 months.
Can I just work on my own house?
No. Families enter into a contract with each other to share labor. This labor sharing agreement is a fundamental principle of the program.
Can I participate if I have already owned my own home?
Generally, self-help housing is a first-time homebuyer program. However, in some cases, consideration is given to homebuyers who lost a home due to divorce or who currently have a substandard home.
How much cash will I need to participate?
You will be required to pay for a credit report and hand tools, the cost of which will vary upon the location of construction. Additional fees may apply depending on the lender.
Are the families with disabled or handicapped member eligible?
Yes. Reasonable accommodations are made in the labor requirement for any participant family. There are also plan modifications available when there are special needs in a household.
Can I sell my home after I build it?
Yes. However, you will repay the money you borrowed. Some loans may require that you share with the lender any gain you earn on the sale.
Will I know right away if I qualify for a loan?
Community Frameworks can pre-qualify the applicant with unverified information provided by the applicant by phone or in person. However, a final eligibility determination will not be made until a written application is filed, household income is verified, and a mortgage credit report is obtained.
How long will it be before I can move into my new home?
Typically a family can move in 30 to 60 days after completion of all homes in the building group.
How much will I need for a down payment?
A down payment is not required. Loans may be made for up to 100 percent of the market (appraised) value. Your labor is your down payment.
Does this mean I won’t need any cash to get a loan? Are there any program costs?
Generally, the applicant will need some cash available. The applicant always pays the credit report fee. Depending on the location of the project and lending program, a tool fee may apply. Generally, loan closing costs may be included in the loan amount.
If your home is financed through USDA, near the end of construction, there will be certain closing costs that will be required, including prepaid property taxes and insurance. The amount for your particular project will be estimated for you prior to you starting construction, and families must plan to save this money during the construction period.
Does the applicant have other responsibilities?
Yes. Community Frameworks staff is available to assist the applicant from the application to loan closing. The applicant is responsible for providing requested information timely. The lender or closing agent may request the information. Failure to provide information timely may result in delayed decisions and other actions. The applicant must also attend any classes required by Community Frameworks or the lender.
What are the terms of the loan?
The maximum repayment period is between 30 and 38 years, depending on the lender’s product.
Where may houses be located?
Houses must be located on desirable sites with an adequate supply of safe drinking water and suitable arrangements for sewage disposal. Streets must have an all-weather surface. Community Frameworks chooses the location of the building sites.
Does it matter how many other bills I have to pay?
Community Frameworks will look at how much you currently owe to others. We will want to know if paying back the proposed loan on top of your other payments will be difficult for you.
What if I think my income is too low?
Having enough income to repay your loan is an important part of getting a loan; however, the first mortgage may be subsidized. A subsidized loan is based on the applicant repaying a percentage of their income toward the housing payment, taxes, and insurance. Each lender uses a different percentage, which generally ranges from 22 to 30 percent of the applicant’s household income.
How can I determine if my income is adequate to repay a loan?
The total amount of the proposed monthly house payment, real estate taxes, insurance, and other credit debts cannot exceed 41 percent, and in some instances 45 percent, of your gross monthly income. If you have questions regarding how this determination is made, you may contact Community Frameworks.
Can I get a loan if I am unemployed?
A steady source of income is very important to getting a loan. An applicant must show sufficient resources to repay the housing loan. Not having a job may have an impact on the loan approval decision. Experience has shown that applicants with stable jobs are more likely to repay the loan.
Will you find out about other credit I’ve had?
Yes. Your credit bureau report provides information on your payment history including any difficulty you have had repaying other loans or credit cards. That information will be used to see if you can easily repay the loan.
How can I find out if I’m eligible for a loan?
A Community Frameworks employee is available to discuss eligibility requirements with you on an individual basis by phone or in person.
Will I need to get part of my financing from another source?
Applicants who demonstrate the ability to obtain a portion of the needed funds from supplemental sources (such as IDA accounts or housing vouchers) are encouraged to do so. Supplemental funding allows Community Frameworks to assist more families in buying their own homes.
What do you mean by "good" credit?
While we don’t require our participants to have perfect credit, we like to see a clean twelve-month history, meaning that all of your open accounts are current with no late payments on record. If you have had a bankruptcy in the past, we require a certain amount of time to have passed from the discharge date. The amount of time required depends on the type of bankruptcy and the circumstances. Any charge-offs, judgments or collection accounts over $250 must be paid or settled prior to participating in the program.
If you haven’t established traditional forms of credit such as a student loan, credit card or an auto loan, we may be able to build a non-traditional credit history by obtaining statements and letters of credit from your insurance carrier, utility companies, day care provider and so on.
What if I haven't worked at my current employer for two years?
While we like to see a two-year history with your current employer to demonstrate stability, there are certain circumstances we can take into consideration. Examples would be if you have gone to school or received formal training for your current position or you recently started a new job in the same field because it offered a higher rate of pay or benefits for you and your family. However, if your position is considered “seasonal” (one that has mandatory or regular lay-off periods), we must have a full two-year history, unless a sound justification can be provided.
How do you verify my income?
We must be able to verify your income directly with your employer either by mail or by phone. We also must be able to document your income and earnings either via paycheck stubs or printouts from an accountant who handles the record keeping for your employer. In some cases your tax returns will be the best method to verify income.
What is included in my monthly house payment?
House payments include principal and interest on your first mortgage loan as well as an amount collected and held in escrow to pay your homeowners insurance and property taxes. In some cases you will also be required to pay a small homeowners association fee.
When you purchase a condominium, your monthly payment includes principal and interest, taxes and association fees. The condo association fee covers some utilities and the insurance on the building and common areas. As a condominium owner, you are responsible for insuring only the personal contents in your unit. This type of policy is similar to that of a renter’s policy.
All elements of your monthly payments including any fees are considered when we calculate the amount of your payment.
How do I apply?
To apply for our program, please visit the Application page and download our application. Once you have completed the application, you can mail it or drop it off at our office. You can also call our office to request an application packet or pick one up. If you need assistance filling out the application, we are glad to answer your questions over the phone or in person by appointment.
Once you have filled out your application and provided us with the supporting documentation (such as paycheck stubs, bank statements, tax returns, etc.) we consider the application complete. We will then order your credit report and proceed with the qualification process. |
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