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For low-income families on the Kenai Peninsula, being able to afford a home may sound too good to be true, especially in these economically uncertain times. Thanks to RurAL CAP, what once was thought to be a pipe dream is now a reality.

RurAL CAP's mutual self-help housing program, which allows low-income borrowers to work together to build each others' homes, is seeking four more applicants for its June 2009 project.

"You can get into a home now for less than you pay for rent," said Donna Shassetz, self-help housing coordinator for RurAL CAP. "You're not going to get a better home."

Self-help applicants are judged based on credit worthiness, not credit score, Shassetz said. Some indicators of credit worthiness include no bankruptcy in the last three years and having no more than two payments that are more than 30 days late within the last 12 months. Debts, including existing utilities, should be current and have a history of timely payment, child support payments must be current and applicants can have no federal debt delinquency.

If a family doesn't qualify for the program today, that doesn't mean they won't qualify in the future, Shassetz said. RurAL CAP has a financial literacy specialist on staff to assist families with their credit problems. According to Shassetz, about 60 percent of self-help housing program homeowners had some sort of credit problem they overcame.

To qualify for the self-help program, applicants may not earn more than 80 percent of the country median income as a household. A household's income must also be sufficient to handle house payments as well as any monthly debt. According to RurAL CAP, the housing payment should not exceed 29 percent of gross monthly income and total debt should not exceed 41 percent. A minimum $1,200 gross monthly income is recommended.

The program is available for anyone who qualifies, regardless of marital status, race, ethnicity or religion. Each house is a five-star energy rated house, Shassetz said.

"It's a really wonderful program," she said. "It brings communities together."

House payments for self-helpers vary. The interest rate is based on income and family size. Rates can increase or decrease annually depending on changes in income. Interest rates can vary from 1 percent to the current market rate.

Families put in 65 percent of the work building their own homes, Shassetz said. Called "sweat equity hours," each household commits 30 hours per week for construction. Families do not have to make payments during the building process.

"Little perks like that are a phenomenal advantage," said fellow self-helper Lisa Hunt, who is in the process of building one of 10 homes in a RurAL CAP development off of Kalifornsky Beach Road across from Cannery Road in Kenai.

"I think it's a fabulous program," Hunt said. "I've definitely learned a lot."

RurAL CAP has a construction supervisor, Loren Bass, who teaches the families what they need to know to build their homes. Families also work together, helping build each others' homes, Shassetz said. Every family closes their loans together and moves in on the same day. No one can move in until construction on every house is completed.

"They're building a community, not just a home," Shassetz said.

"When we're all working together, it's a lot of fun," Hunt said. "You're building a nice neighborhood with hard working people."

This project is the second self-help housing project on the central peninsula. The first was an eight-house project in Sterling and was completed on May 15. Shassetz said the goal for the 10-house, K-beach project is to have families move in on March 1.

By working on their own homes, self-helpers have great pride in ownership and form a camaraderie in the neighborhood, Shassetz said. "Instead of followers, they learn to be leaders."

Hunt said she likes the program because it encourages families to continue to work harder. "It has the feeling that we're all building a community."

Ground breaking for the third self-help project is set for June, provided enough applicants are gathered. The deadline to apply is Dec. 15. Anyone interested can download a pre-screening application and credit information release form online at www.ruralcap.com. Shassetz can be reached at 907-865-7369 or by e-mail at dshassetz@ruralcap.com for any questions. Completed applications can be mailed to Shassetz at P.O. Box 200908 Anchorage, AK 99520 or faxed to 907-865-7294.

Anyone interested in volunteering to help build homes can contact Lisa Hunt at kenaiproject@yahoo.com.

RurAL CAP is planning a fourth self-help housing project in 2010. It will be an eight-house project and even if the December deadline passes, Shassetz said she encourages anyone interested to apply. Applications are accepted year round.

Mike Nesper can be reached at mike.nesper@peninsulaclarion.com.