UHDC Mutual Self-Help Housing Program (USDA Section 502)

What is UHDC Mutual Self-Help Housing Program (USDA Section 502)?

UHDC Mutual Self-Help Housing Program (USDA Section 502) is a first mortgage for homebuyers in Russellville, Arkansas, administered by Universal Housing Development Corporation (UHDC).

• UHDC's Self-Help Building Program uses USDA Rural Development Section 502 Direct loans to help very-low- and low-income families build their own new, energy-efficient homes in rural Arkansas. Families contribute sweat equity (labor) during construction under a construction supervisor, which keeps the cost of the home low. UHDC processes applications, provides housing counseling, and files the loan application with USDA Rural Development for the county where the home will be built.
• Build your own home with sweat equity to lower cost.
• USDA Section 502 Direct financing (rate as low as 1% with payment assistance).
• No traditional cash down payment.
• HUD-approved counseling and credit help included.
• Funding comes from USDA Rural Development Section 502 Direct loans; UHDC is a NeighborWorks America chartered member and HUD-approved housing counseling agency.

Do you have to pay it back?

UHDC Mutual Self-Help Housing Program (USDA Section 502) is a first mortgage and is repaid under the terms set by Universal Housing Development Corporation (UHDC).

• Repayment is triggered by Standard USDA 502 Direct mortgage repayment; USDA payment subsidy subject to recapture per USDA rules.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

UHDC Mutual Self-Help Housing Program (USDA Section 502) is open to buyers who will live in the home as their primary residence.

What are the income limits?

UHDC Mutual Self-Help Housing Program (USDA Section 502) sets its income limit as follows: Targets very-low- and low-income families per USDA Section 502 Direct income limits (county-specific - verify on the official USDA income eligibility site).

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Where does it apply?

UHDC Mutual Self-Help Housing Program (USDA Section 502) serves buyers purchasing in Russellville, Arkansas.

• The program targets specific areas: Counties served: Pope, Logan, Conway, Yell, and Johnson (rural areas eligible for USDA Section 502 financing).

How do you apply?

Applications for UHDC Mutual Self-Help Housing Program (USDA Section 502) go through Universal Housing Development Corporation (UHDC), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through UHDC (HUD-approved housing counseling agency; provides homebuyer education and credit counseling).

2. 2

   Contact Universal Housing Development Corporation (UHDC) to reserve funds

   Funds are reserved through Applications processed by UHDC first-come, first-served; loan applications then filed with USDA Rural Development for the county where the house will be built, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.