New grant programs offer home-buying incentives-Presidents Message

Even though the tax credit for first-time home buyers is set to expire Nov. 30, there is still time to take advantage of that program. Not only that, there are three new local incentives that could sweeten the deal even more.
    

One such program is a second round of grants for buyers of new construction. On Friday, Gov. Gary Herbert announced the renewal of the popular Home Run program, which before expiring in June had provided more than 1,600 grants to buyers of newly constructed, never-occupied homes.
   

The reinstated program will provide $4,000 grants to approximately 1,950 buyers. The grants will be awarded on a first-come, first-served basis to buyers who apply for the funds through their Utah Housing Corporation-approved lender by Nov. 30.
   

Unlike the original program that was only available for homes that were ready for occupancy upon closing, Home Run 2 allows buyers to receive grants for homes that will be constructed or are under construction as well as homes that are move-in ready but have never been occupied.
   

Buyers can apply for the funds through a Utah Housing Corporation-approved lender. Once the application is complete, Utah Housing will issue a grant commitment. For purchases of move-in ready homes, the commitment will expire after 10 days. For homes under construction, the commitment will be in effect until June 30, 2010, giving the builder plenty of time to complete the home.
   

Although the program is not limited to first-time home buyers, there are income restrictions. For singles, incomes cannot exceed $75,000, and married couples cannot have incomes greater than $150,000. For more information about the program and to find a UHC-approved lender, visit UtahHousingCorp.org and look for the Home Run 2 link.
   

Another grant program for newly constructed homes is available for those looking to purchase in Sandy. The city has created a new program that will provide low- and moderate-income home buyers with a $5,000 incentive for buying a new home in the city. The funds, which can be applied to down payment and closing costs, are in the form of an interest-free loan that becomes a grant after the home buyer has lived in the property three years. 
   

Sandy plans to provide 10 loans to buyers of existing, never-occupied homes, and another 10 to buyers of to-be-constructed homes. The properties must be within Sandy city limits, must be "single-family dwellings," including townhomes and condos, and must not exceed $305,000. Household incomes must be below certain limits to qualify, but the program is open to both first-time and repeat buyers.
   

Funding for the program comes from a portion of the tax revenue collected from the commercial buildings around City Hall, said city spokeswoman Trina Duerksen. If successful, the program may receive additional funds after the original 20 grants are awarded, she said. So far, all 20 grants are still available.
   

To learn more about the program qualifications and application, visit www.sandy.utah.gov/owninsandy.
   

Finally, for buyers who are interested in both new and existing homes but are short on cash for closing, the Equity Now program from Utah Housing Corporation may be of interest. The newly launched program essentially allows first-time home buyers to use the $8,000 federal home-buying tax credit for down payment and closing costs, even before filing their taxes.
   

Under the program, borrowers take out a first and a second mortgage, which allows them to close with little or no money down. After filing an amended 2008 tax return, buyers can use their tax credit to pay all or part of the second mortgage. For borrowers who use their full credit on their second mortgage, Utah Housing will credit them $100 toward their second mortgage. The program provides instant equity by allowing buyers to use the tax credit funds to substantially lower or even eliminate the second mortgage balance.
   

 To learn more about the monetization program and to find a participating Utah Housing Corporation lender, visit www.UtahHousingCorp.org and look for the Equity Now link.
   

These three programs are just a few of many programs designed to help today's home buyers. To learn about other home-buying incentives, contact your local Realtor.

If you don't have a local Realtor but understand that you may need some one representing you in the Home Buying transaction, stop by Group1 Real Estate and interview us by checking out our website.

 

Published Wednesday, September 23, 2009 7:50 AM by Chris & Berna Sloan