If you think you don’t have enough money to put down on a home, the stress has been lifted.
Here are 4 ways you may qualify that would help you get out of paying rent and start building up equity in your own home.
Utah FHA with Home Grants:
Utah Home Buyer grants assist home buyers with down payment assistance and reduction in loan principal. Often Utah grants can help buyers, who have not owned in the last 3 years, purchase a home with no money down.
These grant programs are sponsored by local cities and counties to attract home buyers into their area. Cities and counties want more people living in their municipality because it supports their revenue from utilities, merchant services and property taxes. Often these municipality ask that you live in the area for a minimum of five years, otherwise if you sell earlier just prorate back a portion of the grant through the sale.
Several cities and counties have home grant programs available, although they do not always have funds available and you may need to wait to be refunded.
Example: A buyer has not owned a home in more than three years and qualifies for a FHA loan. The purchase price of the home is $140,000, so the required down payment by FHA is $4,900. They applied for a grant and got $5,000. So $4,900 covered their full down payment and the remaining $100 reduces their loan amount.
Utah housing is a state program that provides financing for down payments. FHA has a down payment of 3.5%, so if you are purchasing a home at $150,000, then you would need to bring a down payment of $5,250. For several buyers this could be a lot of money to come up with for a home purchase. Fortunately, as long as you do not own a current home, then Utah Housing will provide the down payment as a second loan. Allowing you to purchase a property with no money down.
Eligible down payment assistance for First Time Home Buyers or previous home owners could go as high as 6% with a 660 credit score. Otherwise if the score is above 620, then down payment assistance may go up to 4%. If your credit score is below 620, we can help repair your credit in order to get you above 620 or higher.
Utah housing has 30 year fixed loans with no prepayment penalties. Warning: Only certain lenders qualify to offer these loans. So if a lender says you do not qualify, check Utah Housing approved lenders list to see if the lender qualifies.
There are several Utah housing no money down programs available to Utah home buyers. One of the best is “First Home” which offers their best rate to Utah first time home buyers with no money down. If a Utah home buyers is not a first time home buyer, then Utah housing offers a program called “Home Again” which allows a previous homeowner to purchase Utah homes with no money down.
Other programs include Score, which helps Utah home buyers with lesser credit scores. A new program which allows Utah home buyers to purchase Utah homes with no mortgage insurance regardless if the buyer is a first time home buyer or not.
Side note: a first time home buyer is classified as any person who has not owned or purchased a homes within the last three years. So if an owner was foreclosed on their home and it has been three years, not only could they qualify for a Utah FHA loan but they are also considered a “first time home buyer”.
Regardless if you think you can buy a Utah home or not, it is always best to check with an experienced lender to see if you qualify. Chances are that you may qualify for more than you know.
Utah USDA/Rural Housing:
Utah Rural housing loans are one of the best loan programs that has no money down. This program, which is administered by the USDA (United States Department of Agriculture) offer financing programs to Utah home buyer purchasing Utah homes in rural areas
These Utah home loans have lower mortgage insurance with no money necessary for down payment. They are underwritten by a lender and approved by USDA.
Utah homes that are within the USDA rural housing maps in Utah can qualify for the rural housing loan Utah program. Currently, Utah Rural Housing maps are under review with USDA and may change. Typically, areas with less population are deemed rural, but once that population grows USDA may remove that area from the rural housing maps.
Utah VA loans are designed specifically for those serving or have served in the military. When compared to other loan options, VA is often the best choice. VA loans do not have a down payment and monthly mortgage payments are often less than other loan options due to no mortgage insurance and great rates. VA loans have comparable closing cost (if not lower) to other loans, they are assumable to other qualified veterans and can be prepaid without penalty.
The VA loan qualification process is different than most other loans. Income, credit and other factors are used in different ways. Also, there is not a regular appraisal completed, but rather, a Certificate of Value, which has a very different process than a regular appraisal and may take up to two weeks to complete.
The most important piece of the VA loan is the Certificate of Eligibility. This entitles the recipient to get a VA loan with all it’s benefits. Getting the certificate may take some time and paperwork, most cases can be done online.
If this article has given you hope contact a lender and begin the conversation. Or if you know someone this may help, please forward it to them.
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