Marshall Islands Development Bank Mutual Self-Help Program works with the USDA Rural Development to recruit families who are eligible for 502 low-income loans. The loan application is process by MIDB and then submits to USDA Rural Development for approval. Self-Help Housing is an Owner-Built Housing designed to make housing possible for families who would not otherwise qualify for conventional home financing. Over the last 10 years, 100 Self-Help Housings already been built in the Republic with a given RH 502 Loans total of over $4.8M so far.
Mutual Self-Help: The construction method by which participating families organized in groups generally of 4 to 10 families utilize their own labor to reduce the total construction cost of their homes. Participating families complete construction work on their homes by an exchange of labor with one another. The mutual self-help method must be used for new construction.
Self-Help: The construction method by which an individual family utilizes their labor to reduce the construction cost of their home without an exchange of labor between participating families. Unless otherwise authorized by the District Director, this method is only funded for repair and rehabilitation type construction.
Eligibilty:
Eligible recipients of Mutual Self Help housing Program loans or other forms of assistance from the Bank shall be:
Citizens of the Marshall Islands
Meet 41% Debt Ratio
Have good credit history
Currently in employment
Term/Rate/Amount
Repayment term is set at 33 Years
Interest rate varies between 2% to 5%
Max Amount of Loan is $100,000.00
Requirements:
Use of Loan:
Recipients of a loan shall use such loan proceeds for the purposes for which the loan was approved and for no other purpose(s).
In addition to the loan agreement and the promissory note, each recipient shall execute a “Mortgage Agreement” or the “Landowners’ Consent to Loan Agreement” (if there are no other means of security) and a payroll deduction or other similar requirements.
Refinance/Restructure
Mutual Self-Help Housing Loans are USDA funded and are not subject to Refinance/Restructure
Disbursement of Loans
No disbursement shall be made until and unless all the required documents have been executed by the borrower.
Subjects to the discretion of the Bank, a loan may be disbursed in form of materials, money, or a combination of both.
How to Apply
Please visit us at the MIDB building 2nd floor Rm.# 207 or call 625-3224 ask for Chochi Lokboj or Jimmy Kamram. They will be able to answer your questions and provide you with the necessary documents or fill out the contact form at the Contact page addressing Chochi or Jimmy. Click on the button below to download the Self-Help checklist to speed up the process.
