Financial Help for Building a House

The Habitat for Humanity website has information on eligibility requirements to build your own home.

The U.S. Department of Housing and Urban Development provides real estate grants to construct housing for low-income households. Local governments and non-profit agencies can apply to receive funding to develop rental property or homes to be purchased. The renter or home buyer must meet income-limit requirements to take advantage of these programs. HUD has determined the income-limits for each county in the country based on the area's median income. Because of this, some areas may have higher income limit levels than others.

SHOP

HUD provides funding for the Self-Help Homeownership Program. The program helps low-income families purchase a home using their own sweat equity. The family must contribute 100 hours toward constructing their home or another home to be eligible for help. In addition, the home buyer must have good credit and a steady source of income. Community-based organizations such as Habitat for Humanity or the Housing Assistance Council administer this program to the public.

Specially Adapted Housing Grant

The U.S. Department of Veteran Affairs provides grants to veterans with a service-related disability. The Specially Adapted Housing Grant can be used to construct a home that meets the needs of a disabled veteran. Up to $63,780 can be used to acquire land and construct a specially adapted home, or construct a home on land already owned. To qualify for the grant, the veteran must have a disability that includes loss of use in both legs or both arms, blindness in both eyes or a severe burn injury.

Neighborhood Stabilization Program

The Dodd--Frank Wall Street Reform and Consumer Protection Act of 2010 provided a third round of funding for the Neighborhood Stabilization Program, or NSP. HUD's goal is to help eliminate blight in communities impacted with foreclosures. The program provides money to local governments and community-based organizations to purchase foreclosed or abandoned homes. The organizations have the option to demolish the homes and construct a new home that will be sold at an affordable price. The NSP funds must benefit low-to-moderate income households, and 25 percent of the grant must benefit families whose income is 50 percent of the area median income.

Affordable Housing Program

The Federal Home Loan Banks each year sets aside 10 percent of its net income for the Affordable Housing Program, or AHP. The program provides grant funds to community-based organizations committed to developing low-income housing. Organizations can apply to receive funding to construct residential property for low-income households. The maximum amount of subsidy that can be requested for one project is $1 million. Organizations can apply for funding in April and October each year.

References

• U.S. Department of Housing and Urban Development: Self-help Homeownership Opportunity Program (SHOP)
• U.S. Department of Veteran Affairs: Specially Adapted Housing Program
• U.S. Department of Housing and Urban Development: Neighborhood Stabilization Program Grants
• Federal Home Loan Banks: Affordable Housing Program