Cindee Stone called me and said that the grants had been funded and there was money to be had. In the hectic day of helping families move around the country, that is a call I don't mind getting. So I asked her a few specific questions about grants because she is the grant queen.
1) What is a grant?
A down payment assistance grant is not free money. Depending on what city you get the grant from will determine if you have to pay it back at some time or if it is forgiven. For instance, in Taylorsville they have a $5000.00 grant and if you live in that home for 5 years it is forgiven. If you get a grant in Magna for $10,000 it is forgiven after 15 years. But, if you get a grant where there is not a city grant available and we use the federal grant which is up to $10,000, it is never forgiven. But, you will only need to pay it back only if you sell the home, refinance and take cash out or take out a 2nd mortgage. So, they are all different depending on the city.
The grant will go in as a silent 2nd mortgage where no interest will accrue and no payment is due.
2) How much can I get?
The grants start at $5000 and can go up to $15,000. There are restrictions on each one, so you would need to call for more details.
3) What can the money be used for?
The money can only be used for down payment and closing cost only.
4) What restrictions are there?
First, there are restrictions on income. There is a scale that is used and depending on how many people are in your family, will determine how much they will allow you to make.
You have to be a first time homebuyer (this includes people who have not owned a home in the last 3 years) or recently divorced.
You also have to have $500.00 of your own money involved in the transaction.
There are other guidelines, but these are the basics. The other guidelines will apply to which grant you are going for and which city.
5) Is it all of Salt Lake?
We currently have money in all cities and counties in Salt Lake Valley. We even have money in Utah county (expect Provo and American Fork)
6) How do I get it?
Me! I will help you determine how much and if you can qualify. I will also assist you in filling out the application and submitting your paperwork. This is all part of the service that I offer to my borrowers.
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