A lack of a down payment shouldn’t limit someone from becoming a homeowner. These programs are available to assist the buyer with their down payment. So my question is; why not take advantage of them?
Utah housing is a FHA based loan where the minimal down payment of 3.5% is rolled into a second mortgage and covered by Utah Housing Corp. Utah Housing has 3 loan programs to choose from: First Home, Home Again and Score. Buyers can also have up to 2.5% of their closing cost added into the second loan as well. Check out Utah Housing website to find out more about this great mortgage product.
VA has a true 100% loan program for the military people and also can be used by a survivor widow or widower of a military person. With a VA loan, there is no down payment required and the qualified loan amount is calculated by the “certificate of eligibility”. To find out more about the certificate of eligibility you can visit the Department of Veterans Affairs website.
USDA stands for United States Department of Agriculture. This program is 100% financing with no money down. It is available for rural areas where the population is below 10,000. Although, the areas are shrinking due to population growth, there are still major and desirable cities available, like Saratoga Springs and Tooele. Check out USDA website for available areas.
Most cities and areas do offer Free Grant money. Some grant programs will gift has much as $10,000, which can be used for the down payment. Funds do tend to run out after spring and won’t replenish until Fall time, so timing is important. Grant programs do require the borrower to go through a Home Buyer Education class and obtain a certificate. This is actually a good thing…you can never have too much knowledge in the home buying process.
FHA With Gift Funds
The minimum 3.5% down can be gifted by someone, best if it is a family member. I have seen parents or even grand parents willing to help their kids get into a new home. Documentation that is needed for this is a “gift letter” from the person giving the money that describing it is indeed a gift and not a loan.
Homeownership is very much achievable and with these programs being available, will help make buying a home a reality.
Feel free to contact me for more information on these programs, I’ll be happy to discuss theses options.
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Todd Rodocker specializes with first time home buyers, seasoned buyers and investors. He can be contacted at email@example.com, cell 801-694-0903 or by visiting his web sites www.utahrealestatestore.com www.UtahHomes.kwrealty.com