The Utah State Legislature passed a bill last week that will provide $6000 grants to buyers of newly constructed, never-occupied homes. The program, called "Home Run," will be immediately available to buyers who finance a recently constructed home with a 30-year fixed rate mortgage and meet other qualifications.
Please note that Senate Bill 260 has not yet been signed by the Governor, we anticipate that will occur in the next week or so. Once signed by the Governor Senate Bill 260 will create a fund that will use federal stimulus dollars to provide 1,666 grants that will be distributed through Utah Housing Corporation to Utah buyers on a first-come, first-served basis.
Unlike the federal home-buyer tax credit which is available until Dec. 1, the Home Run program will only be in effect while grants are still available. We expect the grants will go quickly, so we encourage anyone interested in taking advantage of this program to start acting immediately.
To apply for the grant, home buyers should work through any lender qualified to make mortgage loans under Utah law. Lenders will work directly with Utah Housing Corporation to apply for the grant money. At closing, the $6,000 will be credited toward the buyer's down payment or closing costs. Buyers can use any type of traditional 30-year fixed-rate mortgage to qualify, including conventional, FHA, VA, USDA and Utah Housing loans.
Consumers do not have to be first-time buyers to qualify for the program but incomes cannot exceed $75,000 for singles and $150,000 for married couples. Buyers who qualify can take advantage of both the $8,000 federal home-buyer tax credit as well as a Home Run grant.
The Home Run program aims to clear the excess supply of unoccupied real estate inventory on the market. This is expected to stabilize housing as well as create new jobs and revenue in the state.
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