New Hope Construction, Inc.

You may contact our office at 1 866-396-4673, ext 22 or 27, and we will mail an application to you. The application will be reviewed to determine if you qualify for our program. We will consider your age, living conditions, income, credit rating, and ability to pay a mortgage.

If, after reviewing the application, it is determined that you qualify for the program, a home visit is scheduled. An employee or representative of New Hope Construction will visit with you to explain the program and evaluate your living conditions and needs. If the representative determines that you are a good candidate for the program, a letter of approval is sent. If it is determined at this time that you are not eligible, a letter is sent advising of the reasons.

Reasons would include: household income greater than 50% of median income, you have adequate living conditions, you are unwilling or unable to partner, you have too much debt to pay a mortgage, you are not 55 years of age or older. There may be other reasons based on the information provided in the application or the home interview.

Yes, there are other factors to consider. This would include the availability of land in the county or area where you are living, and the available funding through grants, donations, loans, and community participation.

This is normally decided in advance based on funding for the project in your area, although that is not always the case. In some instances, New Hope Construction may purchase land and include it as part of the project. They may receive donated land, or the applicant may have land they own or land that is donated by a friend or relative.

The amount of debt, type of debt, and length of payoff are all considered. Your ability to pay any outstanding debt is evaluated, along with your history of payment on past debts. Any debts that require greater than 6 months to pay off are considered in your debt ratio to determine if you have the ability to pay a mortgage.

To be eligible, bankruptcies must have been discharged or dismissed for at least one year for Chapter 13 and two years for Chapter 7.

You are entitled to a free credit report annually. You may receive a report by calling 1 877-322-8228, or through the website: www.annualcreditreport.com

You will need copies of each household member’s identification and birth certificates or other legal residency documentation, three years of your tax returns (or proof that you have not filed a return), recent paystubs and other income, bank statements, and copies of other monthly bills such as utilities and loan statements. Other documents may be requested depending on the individual situation. These items will be turned in with during the home visit.

Once a house build is scheduled for you, a representative from New Hope Construction will meet with you to go over the pre-construction documents. You will sign many of these documents, including the contract to build.

There are many factors to consider. A good rule of thumb is six months to 2 years. If funding is in place and a project is planned for the area in which you live, it can take as little as 3 months and as long as 18 months. If funding is not in place, it could take longer. Other factors such as the scope of the project and waiting lists can also affect the timeline.

Sweat equity is the investment each homeowner makes in their own home and other Seniors at Home house builds. That might include meals for volunteers, assisting with the build, running errands, and keeping the worksite clean. Sweat equity not only assists the NHC volunteers and employees who work on the build, but establishes a sense of ownership, pride, and community for the homeowner. A sweat equity commitment is made by the homeowner when pre-construction documents are signed.

100 hours are required by each homeowner.

If you have a disability that prevents you from being able to do some sweat equity requirements, a friend or relative may take your place, or we will work with you on finding alternate ways to fulfill your sweat equity hours. This may include doing community service that will accommodate your disability.

Each applicant agrees to comply with the Seniors at Home program guidelines. This includes marketing the program with interviews and pictures, setting up a bank draft for payment of mortgage, and sweat equity, to name a few. Also required is attendance at an 8 hour Homeowner Education class.

The first mortgage is a monthly payment spread out over 30 years, with zero per cent interest. The payment is scaled according to the homeowners ability to pay, and does not exceed 27% of their income, including taxes and insurance. There is a second mortgage which is forgiven monthly and not payable unless the homeowner sells, refinances, or defaults on the first mortgage. In some cases there is a third mortgage if the first two are not sufficient to cover the value of the house. It is due at the end of the 30 year 1st mortgage, also paid monthly.

There are no down payment or closing costs associated with this program.

The Seniors at Home program began in the Appalachian area of Tennessee, with the first builds in Dunlap and Pikeville, Tennessee. The program has expanded to Simpson County, KY, Lobelville, and other areas of Middle Tennessee. Any area in the US would be considered to establish a program. Feasibility of establishing a build depends on local support and funding sources.

Size of the house is determined by the selected family. Most Seniors at Home houses are two bedroom, 1 bath, unless there are additional family members such as grandparents raising grandchildren. The houses are modest and energy-efficient. Some selections can be made on items such as siding, roofing, countertops, and lighting, but is not guaranteed due to possible donation of materials. In order to keep this program affordable, custom house plans or special requests are not an option. The house is ADA compatible and if terrain allows there is at least one zero-step exterior entry. Normal features include wood-free exterior with vinyl siding, EnergyStar windows, laminate and vinyl flooring, one ceiling fan, washer, dryer, range, refrigerator, and microwave.

A house can take as little as 7 days and normally not longer than 6 weeks. This depends on the number of volunteers, work hours, and work days (during the week, only weekends, or both). The house package is delivered with wall panels and trusses already intact. If there are sufficient volunteers, wall panels and trusses can be in place by the end of the first day.

New Hope Construction supports the homebuilder for the first year after closing. Any issues with the house will be directed to them. They will keep the homeowner informed as to resolution of any issues, in order to help them learn how to care for the house once the year has expired. Appliances, HVAC, etc. carry their own warranty.