Are you looking to buy a home but don’t know what loan programs you qualify for? If you are, here are some less well known programs that I am aware of as a real estate agent, but if you’re serious about qualifying for a mortgage, you really should talk to a mortgage professional.
Utah Home Loan Programs
Utah Housing Loan Programs (There are six.)
- First Home
- First Home Plus
- VEP First Home
- VEP First Home Plus
- Single Parent First Home
- Single Parent First Home Plus
First Home Loans – Are geared to first-time homebuyers who have access to personal or family financial resources to pay all of their down payment and closing costs. FirstHome loans may also be used to purchase homes in Targeted Areas of Utah.
First Home Plus – Offers financial assistance for first-time homebuyers who do not have personal or family finances with which to pay their down payment and closing costs. These costs generally average 5% – 6% of the home purchase price. Applicants can borrow up to 6% of the amount of their first mortgage using a second mortgage that will have the same term as the first mortgage, but an interest rate of 7%.
VEP First Home - Is the preferred loan for Veteran homebuyers who have access to personal or family financial resources sufficient to pay all of their down payment and closing costs. Veterans may purchase a home in any location in Utah.
VEP-First Home Plus - Offers financial assistance for Veteran homebuyers who do not have personal or family finances with which to pay their down payment and closing costs. These costs generally average 5% – 6% of the home purchase price. Veterans can borrow up to 6% of the amount of their first mortgage using a second mortgage that has the same term as the first mortgage, but an interest rate of 7%.
Single Parent First Home Loans – are designed to assist single parents who have previously owned or co-owned their own residence and have primary custody of at least one minor dependent. These applicants have access to personal or family resources with which to pay all of their down payment and closing costs.
Single Parent First Home Plus Loans - assist singleparents who have previously owned or co-owned their own residence and have primary custody of at least one minor dependent. These applicants need to borrow funds from UHC to pay all or a part of their down payment and closing costs.
Data attained from: Utah Housing Corp
Benefits of a Utah Housing Loan:
- Lower interest rates,
- Elegible for more money
- Down payment and closing cost assistance
- Buying a house sooner then other loan programs
How are Utah Housing Loans Different?
- Interest rates are lower
- Which makes your house payments lower
- Allows for more money to be borrowed
- Assistance with down payment and closing costs
How Do You Qualify?
- Not owned your personal residence for the last three years (except when using the First Home Program and buying in a Targeted area).
- You have to meet household income limits (Income Limits).
- The home has to meet Utah Housing acquisition limits.
- You have to reside in the home; you can’t use it as an investment or rental property.
- Have enough income to make payments and keep financial obligations.
Utah USDA Rural Housing Loan Program
The Rural Housing Loan is a great loan program to help lower income and mid-lower income families buy a home with little to no money down.
Requirements for rural housing are:
- Meet basic eligibility requirements such as citizenship and unable to obtain conventional financing.
- Good credit history, but can be reviewed on a case by case basis.
- For lower income levels total adjusted income is at %50 lower then their perspective counties median income levels.
- For mid-lower income families, total adjusted income is to be %20 lower then their counties median income levels.
- Interest rates depend on the applicants income and qualifications for special programs.
More information @: USDA Rural Housing Loan Qualifications
In Cache County, residents can apply for the loan program when buying a home North of Hyde Park and South of Nibley, which is quite a large area. To find out if you qualify for the Rural Housing Loan, contact a mortgage professional that specializes in the program or contact us and we can recommend a professional.
The Rural Housing Loan and Utah Housing Loans are options that allow people that can’t qualify for conventional loans obtain a home. The information listed here are summaries of the qualifications of the programs, and I would recommend you talk to a mortgage professional that is certified in these programs before you assume you can qualify.
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