Micronesia Community Development Co.

Sweat Equity Housing

Building stronger neighborhoods


Mutual Self-Help Housing will help you fulfill your dream of owning a home. The program is intended to help eligible families build their own homes. Everyone works together to build all the homes in their construction group. All homes are designed to be affordable and energy efficient. Homes have 2, 3 or 4 bedrooms, 2 baths, and a 1 car garage. All homes are built to international building standards. Many times the monthly cost of owning your own home would be less than paying rent. Participants perform at least 65% of the labor needed to build their home. Your labor serves as the down payment in the form of “sweat equity”. Your monthly mortgage payment is determined by your monthly income.


  • You must meet income guidelines.
  • Have a stable job history
  • You must have an acceptable credit history (Credit Analysis Available)
  • Homeowners must be willing to work the required number of hours per week during the construction period. Disabled people may have others work for them.


3 Bed, 2 Bath, Carport (Wide)


2 Bed, 2 Bath, Carport


4 Bed, 2 Bath, Carport Outside Kitchen

What if I have never built a house before?

We will teach you everything you need to know. An experienced construction foreman will teach each group what to build, when to build, and how to build. We will inspect and approve each job as your work progresses. Many people with no prior construction experience have successfully built their new home.

Wkat kind of work will I be doing?

You will be hammering, sawing, painting, roofing, etc. Jobs such as plumbing, electrical, and foundation work will be done by licensed subcontractors. The construction foreman will supervise the construction of each home.

Your sweat equity becomes


 To be eligible for a section 502 loan, the applicant must meet the following requirements:

  • A person who does not own a dwelling, or owns a dwelling which is not structurally sound or functionally adequate.
  • Be without sufficient financial resources and unable to secure necessary Credit elsewhere to meet housing needs (refer to section on Net Family Assets and Down Payment)
  • Must be a U.S. citizen or permanent resident alien.
  • Possess the legal capacity to incur the loan obligation.
  • Will personally occupy the home on permanent basis.
  • An acceptable credit history. a. No legal problems in the last 36 months, including charge off, bankruptcies and foreclosures. b. No more than 2 late payments in the last 12 months. c. No judgment or collection accounts in the last 12 months.
  • Has adequate and dependable income sufficient to meet the following income to debt qualifying ratios: PITI = Principal, Interest, Taxes, Insurance (PITI = gross income) TD = Total Debt ratio (PITI plus all other debts = gross income) a. Low income – not to exceed PITI -33%; TD -41% b. Very low income – not to exceed PITI -29%; TD -41%

* The “Sweat Equity” housing program has two income limits: HUD and USDA. When using funds from HUD, the income limits will be used as reflected in the HUD graph. Otherwise, if no HUD funds are used, then the USDA income limits will apply.

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