Coming up with a down payment and closing cost can be one of the biggest challenges that a first-time home buyer has. It plays such an important part that it actually keeping these buyers from entering the home buying seen and holding them back on the sidelines.
But this reason alone should not be a factory for first time home buyers due to the available Grant Money and Assistant Down Payment Programs that are available. These programs are designed to ease the difficulty of saving for the down payment and closing cost that is associated with buying a home. Grant money will come with no interest accruing; some are forgiven after a period of time and some are paid back through either the sale of the home or with a refinancing of the mortgage.
With the aid of a down payment assistance which is different for Grant money, is a mortgage program that can loan up to 6% of the purchase amount that can be used towards down payment and closing cost through a second mortgage. This is as close to a 100% financing as you can get. I have seen buyer’s walking into buying a home with under $1,000 out of pocket with these programs that is offered by Utah Housing Corporation.
Household incomes cannot exceed 80% of the area median income and varies on the number of people that will be living in the home. Maximum purchase price for the Salt Lake County is $256,400 and first time home buyers are required to go through a home buyer education program, which is a good idea even if you are not applying for a Grant or Down Payment Assistance.
The grant money does tend to run out by the middle or end of summer, but will be replenished in the Fall time. However, the down payment assistance programs are available all the time and does not relay on funds to be available.
New Funds Available
New areas that have just been added for Grant money is South Jordan Utah and Sandy Utah. Actual award amount is based on individual need and is determined on a case-by-case basis up to the amount of $7,500 for these two Cities.
Some of these programs are available to people who have owned a home in the past or who has not owned in the last two years.
We have put together a comprehensive free guide for our local Grant Money and Down Payment Assistance programs for the areas in the State of Utah. This covers the amount of money available, forgiveness of the Grant and other details related to the Grants. You can request your FREE copy here.
There are great opportunities available to home buyers that will help homeownership become a reality without needing the funds for a down payment.