© 2021 – Housing Development Alliance | Designed by The Holler
YOU Can Own a Home!
At the Housing Development Alliance (HDA), we believe that a good, high quality, affordable home should be available to every person and family in Eastern Kentucky. Being poor should not prevent someone from ever owning their own home. Your home is the foundation on which you’ll build your life. It’s where you might choose to raise a family. That’s why your home should be one you can afford, that will build financial strength (not cause financial stress) and will help you become a stronger and more productive member of your community.
We’ve helped nearly 400 low-income families realize their dreams of owning a new home in the counties we serve: Breathitt, Knott, Leslie, and Perry. And we can help you, too! Start your journey with us to transform your life and your family’s future in your own forever home.
When a family comes to us for help getting a new home, we work with them from start to finish. From the moment a family qualifies and papers are signed, to the moment we close on the home and the family receives the keys, we’re there with them every step of the way.
This close relationship allows us to prepare each family for homeownership through Housing Counseling, where our NCHEC (NeighborWorks Center for Homeownership Education & Counseling) Certified Counselor coaches families on managing finances, budgeting, home maintenance, and more so that they have a much better chance at long-term success.
The path to homeownership is not a short and simple one – families are not simply given homes; it’s a process that requires commitment, time, and dedication.
If you’re low-income and ready to be a homeowner, we can’t wait to meet you! You’ve arrived at exactly the place you need to be, and we look forward to working with you on making your dreams come true.
We help qualifying low-income individuals and families become new homeowners! Our homes are not free – instead, we work with you to build you a home that stays within your budget and mortgage limits and meets your needs.
You pick your floor plan, and we do the work! Our expert builders will construct the home of your dreams, using your choices in design, flooring, paint colors, light fixtures, and more. Let’s build your dream home!
We’ll get you where you want to be! If you don’t already have a piece of land to build on, our Land Specialist works with you to find the ideal spot for your new home in Breathitt, Knott, Leslie, or Perry County.
Our goal is to build you a forever home. That means it should be a house you can afford. All HDA homes are energy efficient (Energy Star Certified) and can save you hundreds of dollars on utility costs each year!
The HDA Homeownership Program is income-based, which means we help low-income individuals and families achieve their dreams of homeownership. So, the first thing we consider is your income, and then, we must determine if you are able to pay an affordable mortgage.
Unfortunately, not every low-income person or family who applies will qualify for our program. That’s because our program is funded by state and federal programs that each have their own guidelines for qualifying that must be met. We try, in every way possible, to work with each individual or family to help them qualify and meet the requirements.
HDA serves only the counties of Breathitt, Knott, Leslie, and Perry in Eastern Kentucky. The families we serve must either already live in one of these counties or they want to (and will) live in one of them.
If you need housing help but live outside our service area, click here for info on our sister organizations throughout Eastern Kentucky and in nearby states.
Like most housing assistance programs, eligibility for our Homeownership Program is based on the area median income, or AMI. The AMI is the household income for the median, or the middle, household in a region. Each year, HUD (the Department of Housing & Urban Development) calculates the AMIs for every region of the country, and we base our eligibility requirements on their estimates.
They begin with the median income for a family of four. In our region, the AMI for a family of four is currently $57,600. Since our service area includes some of the poorest counties in the country, this AMI is one of the lowest in the nation.
The table below, provided by HUD, shows the median incomes for various household sizes in Perry County, KY. (The example given for Perry County is the same or similar for all of the counties we serve.) We determine whether a family is eligible for our Homeownership Program based on a comparison of their income to a percentage of the AMI. As you can see, families often fall into one of three categories: 1) Extremely-Low Income (earning less than 30% of AMI); 2) Very-Low Income (earning less than 50% of AMI); and 3) Low-Income (earning less than 80% of AMI). These calculations help us determine what is affordable for a family.
*Note that 2025 income limits have not yet been released by HUD.
We help families of all sizes. Single folks can apply, too! We also support Equal Housing Opportunity.
There are different income requirements for families based on size simply because family incomes differ by the number of people in a household. Again, we use HUD income requirements based on household size to determine eligibility. These requirements are used by every affordable housing program in the region. HDA has helped families of all sizes and backgrounds. If you have questions, please contact us!
As with seeking any type of loan, your credit and debt history will be reviewed. Don’t let this requirement hold you back! This topic alone creates a lot of fear – and in some cases, hesitancy and embarrassment. We want you to know, though, that there is no need to feel this way! Your information is kept confidential, and more than anything, we are here to help.
It’s important to note that your credit rating is important, but it’s not a make or break requirement. We’ve helped lots of individuals and families achieve homeownership through credit counseling and debt management. This is made available to you through Housing Counseling, which is a free service offered to you through our program. In fact, every individual and family receives some form of Housing Counseling to get them ready for homeownership. We just tailor it to the needs of each person or family.
Determining your debt load and credit history helps us determine the kind of home loan package we can negotiate for you and whether or not you are able to pay an affordable mortgage. If you qualify for our program but your credit/debt needs attention, we’ll get you where you need to be so that your financial situation does not prevent you from owning a home.
An ideal applicant would have a debt-to-income ratio around 25%, gross monthly income of at least *$1,750 per month (residents of Perry and Knott counties) or $1,900 per month (Leslie and Breathitt counties), a credit score near 690, and a positive history of loan repayment.
In addition to completing Housing Counseling, HDA homeowners contribute up to 150 hours of unpaid labor or “sweat equity” in which they help build their own home. These work hours offset some of the construction costs.
Every family is required to contribute sweat equity and participates in whatever ways they are physically able – from landscaping and painting to flooring and roofing … and in many cases, all of these! Prior experience in construction work is not required as our on-staff carpenters are always present to guide the way.
In addition to lowering costs for the homeowner, we’ve found that contributing sweat equity hours gives the new homeowner a sense of achievement and even greater pride in their new home.
Should an individual or family be unable to complete their sweat equity hours, which is most often due to a disability, the homeowner can call upon extended family members and/or friends to help meet this requirement. If this is not an option for the homeowner, HDA seeks out volunteer labor to contribute the hours needed.
Qualification guidelines can change quite often, and when considering household size, income level, and other unique situations, we prefer talking with families directly. If you're interested in HDA's Homeownership Program and have questions about qualifying, please contact our office by calling 606-436-0497.
Read the FAQsWe believe in using the power of housing to transform lives and build a brighter future for our community.
While we can’t promise that becoming a new homeowner will solve all of life’s problems and miraculously make everything better, we do believe that improving your life’s circumstances is easier if you have the strong foundation and financial stability an affordable new home provides.
Our staff will collect information from you to determine if you qualify for our Homeownership Program. If you are eligible for our program, our staff member will let you know what documents and further information you will need to provide.
Michael Cassell, Intake Specialist
Office: 606-436-0497
Every East Kentucky family deserves a home they can afford. Help us transform lives through affordable housing!
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© 2021 – Housing Development Alliance | Designed by The Holler
