Owner-Builder Frequently Asked Questions
If you are considering building your own home through the Owner-Builder program, you probably have a lot of questions. It’s best to meet with an NNHC housing counselor to get all the details, but until then, it may be helpful to check out our FAQs below:
What are the benefits of the program?
- Subsidized or lower than market interest rates
- No mortgage insurance
- No out-of-pocket closing costs
- Gain equity in the home through “sweat equity”
- Get to know your neighbors as you build
Is a down payment required?
If you have cash assets over $15,000 you will have a required down payment. If your cash assets are less than $15,000, a down payment is not required.
Is there an HOA fee?
Some of our subdivisions are subject to HOA fees and regulations. The amount varies by home type and location.
What is sweat equity?
Sweat equity is the difference between the value of the home after construction and the construction costs.
Where are you currently building?
We are currently building in Hyrum and Smithfield, Utah.
When do my mortgage payments begin?
Mortgage payments begin after you move into the home.
How does the construction process work?
Generally, 7-10 households work together in a group to build each other’s homes. Each household works a set number of hours each week. All the homes move forward together through each phase of construction and are completed at the same time. Households are only allowed to move in once all homes in the group are finished and have received a Certificate of Occupancy from the city.
What are the minimum number of hours required each week?
The minimum hours per household is 35 hours per week. Someone representing your household must be on site each day as follows:
Sunday
OFF
Monday
OFF
Tuesday
4:00pm – 9:30pm
Wednesday
4:00pm – 9:30pm
Thursday
4:00pm – 9:30pm
Friday
OFF
Saturday
8:00am – 6:00pm
When and how do I choose my house plan and building lot?
House plan and lot selection take place after you have received eligibility. Click here for the house plan gallery.
What are the USDA eligibility requirements for the loan?
You can check out the eligibility requirements here.
How long is the wait list?
Wait times will vary based on availability, your interest in the program, and your financial readiness to start the program. A counselor can never guarantee a starting date. However, you can ask your counselor more about this during your appointment.
How do I get started?
Contact us to set up an appointment. A housing counselor will review all the program requirements with you at the first meeting to determine your readiness and discuss what you need to do to become ready. Call us at 435-753-1112 or fill out the contact form here, and we will call you to set an appointment.