The Fed and Utah St Are Paying You To Buy A Home. Is This A Great Country Or What?

Just when we were beginning to think there was no light at the end of the tunnel, the ruby slippers come through again!  Utah just ok'd a grant for existing new construction of up to $6,000.   This new grant is available to anyone buying new construction...that being defined as a home that has never been lived in. And nope, you can't put a down payment on a lot to build with this grant..it must be existing.

This new grant is like the Federal Home Run Tax Credit in several ways:

• Income levels are capped at $75,000 for singles, $150,000 for married couples
• This is a grant that does not have to be paid back provided you live in the house for 3 years or more

Where it differs:

• It's an actual grant that comes to you at closing, so you can use it for downpayment, closing costs, or take the check and buy some new furniture!
• It's on a first come, first serve basis- only enough money for 1600 grants, once they are gone, they are gone!
• You cannot apply for the grant until you have a home under contract, have gone through underwriting and are totally approved with an appraisal in your hot little hand.
• And the best part..You Don't have to be a first time homebuyer! 

Now, this gets better if you are a first time homebuyer!  Not only can you get this grant of $6,000 , but you also qualify for up to $8000 in the Fed Tax Credit.

So, now to the anecdotal evidence section. This is a story problem. Take out your calculators folks! This past month, we helped a client buy a builder foreclosure over 3,000 sq ft, 4bd, 2bth, brand new.  Listed after foreclosure at $214,000, (note: below market value here) got it for $185,000, bank paid closing costs of 3%, client got the $6,000 new construction grant , and the $8000 tax credit.  What was the cost of her home?  That's right! 

But beware, there are some hoops to jump through on these grants and tax credits.  Be sure you have some good representation to help you through them.  For more information on the grants and what to do with them, visit our website!  We found a video that explains it very well.  And if you still have questions, you can sure call us.  We are happy to help in any way we can.