Self-help project lacks qualified applicants

South County Housing is still accepting applications for the second phase of a self-help home project in Hollister for low- and very low-income residents.
The nonprofit development agency has 30 homes available. About 120 families participated in a lottery process in February, but Project Manager Seth Capron said as the agency staff members process the applications, which require homeowners to qualify for a loan, they have not had enough qualifying candidates from the pool.
“We don’t know how many qualified applications we will have, but it won’t be enough to fill all 30 homes,” Capron said. “We are recruiting more applicants who will be reviewed on a first-come, first-served process.”
Two orientation meetings will be held next week for families interested in getting more information at the Veterans Memorial Hall, 649 San Benito St. The first will be July 10, at 6 p.m., in the Main Hall for English speakers. The second will be July 11, at 6 p.m., in Room 218, for Spanish speakers.
The program is open to low- and very low-income families who are interested in owning a home. The families are required to provide sweat equity in lieu of a downpayment on the house, providing about 65 percent of the labor required to build the homes over the course of a year. Families must also qualify for a United States Department of Agriculture mortgage that offers interest rates as low as 1 percent. Additional down payment assistance is available to reduce the first mortgage by up to $60,000.
South County Housing completed 25 homes in the first phase of the Hillview development in September 2012. The homes in the second phase will incorporate some of the same energy efficient features as the first batch of homes.
Most of the homes will be oriented to benefit from passive solar heating, as the families will set ceramic tile in the living area that will provide storage and release of heat from the sun. The tiles will also keep homes cooler in the summer. The developer is planning to partner with Grid Alternatives to provide photovoltaic systems to all the homes for minimal cost to the homeowners, providing most of the energy needed.
To qualify for the pre-application, residents have to be a first-time homebuyer, plan to occupy the property, meet income restrictions and be a U.S. resident or citizen, or have an authorized work visa. The USDA loan comes with a contingency that if the homeowners lose a job, they can call the USDA staff members to postpone payments for up to two years.
Families have to have a minimum household income of $32,000 for a family of two, up to $53,550 for a family of eight. They also have to maintain a credit score of at least 640 to qualify for the mortgage.
The pricing on the homes is $214,999 for a three bedroom or $229,999 for a four bedroom.
An example of a possible mortgage payment for the homes with a 1 percent interest loan, with insurance and taxes included would be $922 a month.