Salt Lake City, UT: Utah’s Down Payment Assistance Program

June 15, 2012 – written by the Utah Real Estate Professionals

We recently blogged ideas of how to come up with money for your down payment. However, if you are a First Time Home Buyer, there is down payment assistance available.

The Utah Housing Corp. has a Down Payment Assistance program available to assist you with your down payment and closings cost. This is an additional 30 year fixed-rate loan with an interest rate 2% more than your interest rate on your main mortgage. Both of these loans are serviced through the Utah Housing Corporation with mortgage payments made direction to the Corporation and not the finance company who helps you secure your financing.

Down payment assistance for the first time home buyer generally accompanies qualifying for a FHA financed home. (Generally VA financing is 100%) Buyers who are eligible can receive assistance up to 6% of the FirstHome Loan, HomeAgain Loan or 4% of a Score Loan.

FirstHome Loans have the lowest interest rate. These loans are for first time homebuyers with a minimum credit score of 660.

HomeAgain Loans are for first time homebuyers and homebuyers who have previously owned a home with a minimum credit score of 660. The income and sales price limits are higher a than FirstHome loan.

Score Loans are for first time homebuyers and homebuyers who have previously owned a home with a minimum credit score of 620.

FHA loans have a lower down payment requirement than 30 year conventional loans. FHA down payments are 3.5%.

In addition to down payment, there are also closing costs charged by your lender to process your loan. These do vary 3% - 6% depending on your lender.

Only participating lenders can offer these programs and loans. Contact us today for a list of participating lenders – not all lenders participate.

Feel free to contactus at any point. We will be able to give ideas that will make this process a whole lot easier!