You may have heard of the Utah housing loan that is available for Utah residents. This is a first time buyer program that is still available even in today's market. The whole point is to allow a home buyer to finance the down payment and closing costs into the purchase.
Many people think that the days of 100% financing on a property are long gone. For most people, that is true. However, this program is designed to help people own a home without making a down payment. This is a true no down payment program to buy a home in Utah.
This is a program that works under the FHA program administered by HUD (Department of Housing and Urban Development). Usually, an FHA loan requires a 3.5% down payment. With this program, you are able to finance the down payment and closing costs in the purchase. That is a no down payment loan! I love this program because it has opened the door to home ownership for so many of my clients.
The way that the Utah housing loan program works is that there will be two mortgages on the property. The first mortgage will be for the majority of the purchase (usually 96.5% of the purchase price). the second mortgage will cover the down payment, and closing costs.
The guidelines on the program change from time to time, but the rate on the first loan is comparable with market rates. The rate on the second mortgage is usually 2% higher than the first mortgage.
In order to qualify, you must meet the FHA guidelines since this is considered an FHA loan.
I specialize in helping home buyers in Salt Lake City, Sandy, West Jordan, Holladay, or any other area in Salt Lake county, Davis county, and Utah county. I love to use this loan program because it opens up the door for Utah home ownership to many people that would not be able to purchase a home otherwise.
There are so many people out there that have enough income to afford a house payment but they do not have the money for the down payment. This is the perfect loan program for those people.
There are many home loans in Utah to choose from. If you are a first time home buyer, you owe it to yourself to look into this program a little more. Give me a call and I can help you assess whether this is the right loan program for you or not.