Susan McDaniel Havre Daily News smcdaniel@havredailynews.com
Homes for sale, some assembly required. Construction is set to begin on 11 more homes and Mutual Self-Help Housing is looking for applicants. Construction on the first five houses started in September and the cold weather hasn’t stopped their progress. Trusses are up and sheeting is taking place. A roofing contractor is at work, with windows and siding waiting to be installed. Completion of the first five houses is expected for June. All 16 houses will be built in Clacks Acres, which is located west of the hospital between Monroe and Jefferson on new streets 14th Place West and 15th Street West. Lot sizes are 75 feet by 136 feet. The homes are modest in size, design and cost. They are single story wood framed with an optional basement and/or garage. The size of the home that is built depends on the size of the family, their income and the house designs available. The families who will be living in them, along with volunteer labor, build the homes with “sweat equity.” All the work takes place under the supervision of the construction manager who is on site to help and advise on the project. Paula Horsley, the Mutual Self-Help Housing Group Specialist with District IV Human Resources Development Council, is looking for more applicants for the program. May 1 is the target date to begin construction on the 11 remaining homes. “We would like to get applicants for the program as soon as possible,” Horsley said. “The sooner the better. If there are any glitches in their credit history, that gives us time to work to clear them up.” Potential buyers who may not qualify for this year’s program because of prior credit problems are encouraged to apply. With the program’s help in clearing up problems with poor or no credit they could be eligible for next year’s program. Repairing credit takes time and applicants have to be willing to work at it. Horsley recommends that potential homebuyers save paperwork on any financial transaction. Having receipts and copies of agreements help when clearing credit if problems turn up. “We can work with non-traditional forms of credit such as power bills or cell phone bills, the types of credit that traditional lenders might not be willing to consider when loaning money,” Horsley said. Other important factors that are considered are a consistent employment history. Two years at a position or in the same type of position is good. A college degree and work after in the same field is considered consistent. Any student loans have to be consolidated and in good standing. Because the homes being built are funded through another federal program, a problem with student loans will be a certain disqualification. Anything over $7,500 in assets has to be placed as down payment for the home, if elderly the amount increases to $10,000 in assets. Potential homebuyers must have a debt to income ratio total of no more than 41 percent. Principal, interest, taxes and insurance can be no more than 29 percent of income or 33 percent if the buyers are judged as very low income. If close to these limits, apply anyway, because there could be deductions. Seasonal incomes and child support payments are averaged over two years time because of the inconsistency of the income. “Depending on what debts are, a person does need to show income,” Horsley said. “Someone not employed or underemployed would not qualify. Each situation is looked at differently so it would be to anyone’s benefit to fill out a pre-qualification work sheet.” The HRDC website has a prequalification form that can be downloaded with information about the program. The Web site address is www.hrdc4.havre.mt .us/house/house.htm, scroll down the page to the very end and on the bottom of the page click on the mutual self-help link. Application packets are also available at HRDC or call 265- 6743 for more information. Horsley believes there is a large need for good quality, lowincome housing and having full participation in the program this year shows there is a need in order for the program to be funded again next year. Horsley is hoping anyone who may potentially be qualified, take the first step and fill out the pre-qualification form. “And sooner is better,” Horsley said. “Applying early helps give time to fix any potential problems.”
