New Spearfish housing development finishes building first home, more to follow
According to the Vice President of Dream Design, the homes are split into three different tiers.
“Mortgage companies were coming back to us saying, ‘they may qualify for tier one now, but they can’t afford it.’ We had to come back in and adjust it so that we could get those people, the ones that qualify– into the homes,” Vice President Kyle Treloar said. “So we had to make a few tweaks on the formulas to make sure we are still getting homes to the ones that need them.”
Tiers 1 and 2, with single-story homes appraised at around $300,000, will be sold mostly below the original cost in the range of $197,000.
Tier 3 homes will be capped at selling prices of $300,000, which could include amenities such as basements and two-story structures.
“Each price point then has a different income qualification to get into it. You can’t just come in and buy these, and we can’t sell them to anyone who comes in,” Treloar said. “You have to qualify and be at certain percentage points of income. That was the city’s way of guaranteeing that these homes were actually going to people who needed to live in these homes. Not to just be sold off to an investor who can come in and rent them all out.”
Qualifying applicants must be at or below 115 to 125 percent of the average income for Lawrence county which in 2020 was just over $52,000.
But as the first homeowners prepare to close on the house this month, progress is moving along. And with the warmer weather underway, Dream Design hopes to finish at least one home a week in the coming months.