The Owner-Builder must:
(1) Own or be purchasing a piece of real property with
the conveyance of said property evidenced by a warranty deed or Contract
for Deed;
(2) Be qualified as Low Income. Income eligibility
of a Household is determined using the "Annual Income" as defined
at 24 CFR §5.609, by using the list of income included in HUD
Handbook 4350.3 (or most recent version), and excluding from income
those items listed in HUD's Updated List of Federally Mandated Exclusions
from Income. At least two months of source documentation of earned
income must be provided.
(3) Execute a self-help agreement committing to specify
and satisfy one of the criteria provided for in subparagraphs (A)
- (D) of this paragraph:
(A) Provide at least 65% of the labor necessary to
build or rehabilitate the proposed housing through a state-certified
Administrator;
(B) Provide an amount of labor equivalent to 65% in
connection with building or rehabilitating housing for others through
a state-certified Administrator;
(C) Provide through the noncontract labor of friends,
family, or volunteers and through personal labor at least 65% of the
labor necessary to build or rehabilitate the proposed housing through
a state-certified Administrator; or
(D) If due to a documented disability or other limiting
circumstances the Owner-Builder cannot provide the amount of personal
labor otherwise required, provide through the noncontract labor of
friends, family or volunteers at least 65% of the labor necessary
to build or rehabilitate the proposed housing through a state-certified
Administrator;
(4) Successfully complete an Owner-Builder homeownership
education class and HUD-certified housing counseling prior to loan
funding;
(5) Not have any outstanding judgments or liens on
the property; and
(6) Occupy the residence as a Principal Residence within
30 days of the end of the construction period or the closing of the
loan, whichever is later. If the Owner-Builder fails to do so, the
Department may declare the loan in default and accelerate the note.
Any additional habitable structures must be removed from the property
prior to closing; however, a portion of the structure may be utilized
as storage upon the Department's written approval prior to closing.
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