Program Overview: Home Ownership Program (HOP)

Learn about the aspects of the the HOP by scrolling down the page or by jumping to the headings listed below: • Available Homes • Eligibility requirements for low income • Screening process • The waiting list • Self-help work • Features of a Wisdom Way Solar Village home • LEED for Homes features of an RDI house • Financing • Applying for a home in the Wisdom Way Solar Village

Current Housing Available

Currently RDI is building the Wisdom Way Solar Village, a 20 home community in Greenfield, MA. 2, 3 and 4 bedroom homes are available. For more information, including instructions for applying to purchase a Wisdom Way Solar Village home, click here.

RDI currently has a brand new, highly energy efficient 3 Bedroom Cape for sale in Athol. Click here for info.

In addition, RDI's construction team may be available to build near zero net energy homes on land owned by others. If you have a piece of land you're considering building on, please call us at 413-863-9781 Ext. 148 to discuss our availability.

Eligibility Requirements for Low & Moderate Income

1) Must be a first-time homebuyer, defined as anyone who A) has not owned a home in the past 3 years; or B) is a single parent or displaced homemaker and previously owned a home with a spouse or resided in a home owned by the spouse; or C)owns or owned a dwelling whose structure is not permanently affixed to a permanent foundation.

2) Maximum annual gross household income within the following limits:

3) In good standing with any housing authority - A person presently receiving any assistance from any housing authority must be current with their rent and otherwise be in good standing.

4) Able to obtain a mortgage - RDI will help people secure a mortgage from the United States Department of Agriculture Rural Development program (USDA/RD) and locally from the Greenfield Cooperative Bank. Requirements include having:
• A reliable income
• A demonstrated ability to pay debts
• An acceptable credit history
• A debt-to-income ratio less than 11%. (Divide the amount paid each month for loans, credit and charge cards, and child support paid, by one’s monthly income.)

5) Complete a first-time home buyer’s workshop (does not have to be completed before applying to own an RDI home) - These workshops provide a comprehensive overview of the home buying process. Workshop participants receive certificates upon completion. To register for RDI’s First-time Home Buyer Workshop call (413) 863-9781 ext. 150.

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Screening Process
(The screening process for the Wisdom Way Solar Village differs from the following. Please click here for details.)

1. Eligibility. Two distinct organizations are involved in the process of determining applicants’ eligibility to purchase a house from RDI: (1) The RDI Home Ownership Program (a local private non-profit organization); (2) The USDA Rural Development (a United States government agency). Note: a buyer may choose to work with a private bank instead of the USDA Rural Development.

2. Registration forms. All participants must complete an RDI registration (even if already pre-qualified for a mortgage). The registration forms are available by calling RDI’s Outreach Coordinator at (413) 863-9781 ext. 149.

3. RDI screening. Using the registration form, RDI will determine if the applicant appears eligible for the RDI Home Ownership Program.

4. RDI sends information to the USDA. If the applicant seems eligible for the RDI Home Ownership Program, the information is sent to the USDA/RD Service Center for a mortgage screening.

5. USDA screening. The USDA/RD office will look at the applicant’s credit history and repayment ability.

6. USDA pre-qualifies for a mortgage. If the USDA/RD screening is favorable, the USDA/RD will “pre-qualify” the applicant for a mortgage.

7. RDI’s waiting list. If pre-qualified by the USDA/RD or a private bank for a sufficient mortgage, the applicant’s name is placed on RDI’s waiting list for a house and the applicant is notified by mail.

8. The date that RDI received the complete registration (including credit reports) determines the applicant's place on the waiting list.

9. Determined ineligible by RDI or the USDA. If applicants are “screened out” they will receive a letter that gives an explanation and suggested steps that can be taken to meet the goal of owning a home.

10. Mortgage application. RDI will assist the buyer in preparing the actual USDA Rural Development mortgage application after their name has come to the top of the waiting list and a specific house has been agreed upon for purchase. If the buyer uses a private bank RDI will not be involved in the mortgage application process. There could be a year or more between the RDI registration and the USDA/RD mortgage application.

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Waiting List

A waiting list of eligible buyers is maintained for the affordable homes built by RDI. People are usually on the list for a year or more. Homes will be offered to the first buyer on the list who has been pre-qualified for a large enough mortgage to purchase the house. The eligible buyer also has a certificate of completion from a first time home buyer workshop or is currently enrolled in a workshop. RDI takes family size into consideration when offering a home. A four bedroom house, for example, would not be offered to a single person.

The buyer pays a $300.00 commitment fee to RDI when the purchase and sale agreement is signed. This money is returned to the buyer after all obligations have been met.

The waiting list is also kept active for possible resales of existing RDI homes.

Self Help Work

This is a program in which the prospective homeowner does work known as self-help or “sweat equity.” The homeowners do specific tasks: cleaning the construction site and hauling the debris to the appropriate places, priming and painting all of the drywall, trim, and doors, insulating the basement ceiling, and establishing the lawn. Alternate arrangements can be made for persons with disabilities. This work will take at least 200 hours. All homeowners will need help from friends and family to complete the work.
Additionally, homeowners attend a series of meetings to learn about the sweat equity responsibilities, budgeting for home ownership, RDI policies and procedures, and home maintenance. Several private appointments with RDI will be necessary as well. The self-help aspect of the program requires hard work, resourcefulness, and scheduling flexibility on the part of all participants.

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Standard Features of a Wisdom Way Solar Village House

RDI now seeks LEED® for Homes certification for all houses. Additional features for this program include:

• Dual flush toilets
• Drought resistant grass seed
• Organic fertilizer
• Low flow faucets
• Carbon monoxide detectors
• Low VOC paint
• Recycling of drywall and cardboard

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Financing

Rural Development, Inc. will help people who plan to buy a house from RDI obtain the necessary financing. The mortgages normally come from the United States Department of Agriculture Rural Development (USDA/RD) program and locally from the Greenfield Cooperative Bank, however any bank is acceptable. When a Purchase and Sale agreement is signed, RDI will usually package the mortgage application. There is a $500.00 fee for this service.

• The United States Department of Agriculture Rural Development Mortgage: RDI usually provides affordable houses by partnering with the USDA/RD program. The USDA/RD provides “502 mortgages” for people with low income who qualify. The interest payment on this loan is usually subsidized. The amount of the subsidy is based on family size and household income. It is a 33-year or in some instances a 38-year mortgage. The down payment and some of the closing costs are normally rolled into the mortgage.

• The Greenfield Cooperative Bank Mortgage: New RDI homeowners sometimes obtain two mortgages, one from the USDA/RD and one from the Greenfield Cooperative Bank. Only one application is necessary for both mortgages. When the USDA/RD “Rural Home Loan Partnership” is used, a private lender is also required.

• The “HOME” Deed Rider: Another source of money that is sometimes available to RDI is the Massachusetts Department of Housing and Community Development (DHCD) HOME program, which provides loans up to $65,000 per house. When the house is purchased the obligation for the loan is transferred to the new homeowner in the form of a deed rider. If the homeowner stays in the house for 15 years and does not sell, this loan does not have to be paid back. During the 15 years, the loan does not accrue interest and no payments are being made. If the house is sold before 15 years, the homeowner will usually be required to pay back the entire loan. Additionally, there are conditions of the sale that must be met with the objective of keeping the house affordable and available to people with low income during the 15 year period.

These funds are subject to availability.

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