DIRECT PURCHASE HOUSING
Homeownership through the USDA 502 Direct Loan Program:
Direct Purchase is an alternative to new construction. With the direct purchase option clients are able to purchase an existing home through the assistance of a realtor. An additional benefit of the direct purchase program may include down payment assistance.
Smoky Mountain Housing Partnership serves all of North Carolina through this program:
Financing
Rural Home Loans (Section 502 Loan Program)
Assists low- and very-low-income applicants to obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
Financing Benefits:
- Interest rate below market rate and when modified by payment assistance, can be as low as 1%
- Payment is based on income and adjusted annually
- Repayment period is 33 years
- No down payment is required
- Most closing costs can be financed into the loan
- Interest and mortgage payments are deferred during construction
- Moratorium – Suspends the borrower’s requirement of making monthly payments for up to a 2-year period due to hardship situations
Self-Help Housing
Through SMHP’s Self-Help housing program, we help families and individuals achieve their dream of homeownership. With the help of the participants “sweat equity”, these homes are affordable and attainable.
What is Self-Help Housing?
Through this program, qualifying participants work within a small group of 4-6 families to help each other build their homes under the leadership of a construction supervisor. By the families working together cooperatively to build their homes, they earn “sweat equity” and reduce construction costs.
Do I need construction experience to apply?
No, you do not need to have any prior construction experience to be eligible for this program — just a willingness to learn and work with a construction supervisor.
Who provides the financing for the land, materials, fees, etc.?
The USDA provides payment assistance and low-interest rates to low-income families that would otherwise not be able to secure a home loan.
Financing Benefits of the Self-Help Housing Program are:
- Below-Market Interest Rates
- Payment is Based on Adjusted Annual Income
- No Downpayment Required
- Most Closing Costs can be Financed in the Loan
- Interest and Mortgage Payments are Deferred During Construction
- Payment deferral of a borrower’s requirement of monthly payments for up to 2 years due to hardship situations such as job loss or medical illness.
Who can qualify for the Self-Help Program?
In general, you may qualify for this program if:
- Have stable income.
- Ability and willingness to meet the labor requirements.
- Have the legal capacity to incur a loan.
- Agree to occupy the residence as your primary home.
- You are not barred from any other federal programs.
- You are unable to obtain a loan from any other source.
- Meet Household Income Limit.
Workforce Housing
SMHP owns land off of Jonathan Creek in Maggie Valley suitable for building 40 or so homes for the workers of Haywood and Jackson counties. Stay tuned to this page for updates on when we break ground, pour foundations and complete the homes. All homes will be listed on this website as they become available for purchase.
Down Payment Assistance
Down Payment Assistance is offered through the North Carolina Housing Finance Agency (NCHFA). It is a deferred payment, non-forgivable mortgage with 0% interest rate that can increase your purchase power or reduce your first mortgage amount making your monthly payment even more affordable.
Smoky Mountain Housing Partnership serves the following North Carolina counties through this program:
Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain