MHDC SELF-HELP HOUSING PROGRAM BACKGROUND

MHDC’s Self-Help Housing Program is our premier homeownership program, offered to qualifying families as an
alternative path to homeownership, compared to more traditional avenues. Participants work in a group setting with
other families, under the guidance of qualified construction supervisors. Our skilled staff teaches and educates each
family member while building their own home.

Key Features
 No down payment
 Mortgages rates as low as 1 percent
 Energy-Star rated homes
 Variety of locations
 No experience necessary

Program Requirements
 Each family must qualify for a mortgage
 Families select from multiple MHDC house plans and many interior and exterior options
 ENERGY STAR homes consist of 3 to 4 bedrooms, 2 baths, and garages.
 Each household is required weekly participate of 30 hours per week:
 Mandatory Participation:
o Saturday and Sunday from 7:30 a.m. to 4 p.m. (17 hrs)
o Monday evenings from 5 p.m. to 9 p.m. (4 hrs)
o Volunteers or additional household members may donate their time during the required
participation days to accumulate the additional 9 hrs.
o Volunteers must be 16 years or older
o Hours can be made up outside of mandatory participation days
 All homes must be complete before the households may occupy the homes

Mortgage Loan Information

 33 to 38 Year Fixed Rate Mortgage
 Credit history criteria will apply
 Payments will be based on a case by case basis.
 The individual family affordability will determine if monthly subsidy will be needed to assist each family
in making their mortgage payments, interest rates may begin as low as 1%
 Escrows= property tax and homeowners insurance premium will be included in the monthly mortgage
payment
 Payments begin after all the homes are complete
 Closing costs are included in the loan
MHDC SELF-HELP HOUSING PROGRAM FACTSHEET
MHDC’s Self-Help Housing Program serves very-low to moderate-income individuals and families, of all
backgrounds who are residing in Kent and Sussex Counties, Delaware. Eligible households must be 80 percent and
below Area Median Income (AMI) and 40 percent must be 50 percent AMI.

Who We Serve
 Average income of participating households $27,272 (roughly 40 percent AMI)
 32 participating households have an average annual income below $20,000
 50% of participating households are below 50 percent AMI
 Over half of program participants are black or African American
 Roughly 15% are of Hispanic or Latino ethnicity
 63% are female-headed households & 6% are single-women
 Only an estimated 25% of homes for sale in Kent and Sussex Counties are affordable for households 80
percent and below AMI
 Average affordability gap for households 80% and below AMI is $22,387 in Kent County and $71,699 in
Sussex County

Current Program Activity

 Roughly 40 inquiries a month from new households to participate in the program
 Over 60 households currently working with MHDC and in the pipeline
 21 housing units are currently in construction
 7 participating households are currently waiting to close but cannot due to the federal government’s
Continuing Resolution (CR)

Loans & Resources

 Average loan amount is $130,498 per household
 Average equity per household is $32,374
 Roughly $14.5 million leveraged
 Total appraised values are over $18 million
 Over $3.5 million in total equity created
 More than $122,500,000 has been generated
 Economic impact of more than $122,500,000 generated in Kent and Sussex Counties, DE

Sources Include: U.S Census Bureau Census 2000, U.S Census Bureau American Community Survey Estimates (2005-2009),and Delaware State
Housing Authority, 2010