There is a lot to be said of the great mortgage program administered through the Utah Housing Corporation. This 0 money down mortgage option is a fantastic way for home buyers to make the dream of home ownership become a reality.
Here's how it works for you if you are looking to buy a home and down payment is standing in your way. First contact a lender who is approved to do Utah Housing loans. Obviously I am partial to Security Home Mortgage and our great UH loans.
Second you need to fill out an application either on line www.applywithstetson.comor in person. Some helpful information to have handy while filling out your application would be your W2's and or pay stubs so you know your gross income, your personal information such as your social security # and date of birth and your employment and residence history for the last 2 years.
Third check to see if you qualify for a Utah Housing 0 down Mortgage. Currently UH requires a 660 fico and a standard FHA automated approval through FHA scorecard Fannie Mae's FHA automated underwriting engine.
Once you are pre-approved this is what you can expect. You will have a 1st mortgage which is a standard FHA loan. You will also have a 2nd mortgage which will be for up to 6% of the 1st mortgage amount. The proceeds from this loan can go towards down payment requirements (currently 3.5% of the purchase price on an fha loan) and closing costs. As of the time of this post the current Utah Housing interest rate is 4.75% on the 1st mortgage and 7% on the second mortgage.
You will be required to pay upfront and monthly mortgage insurance just like you would with a standard FHA loan.
Utah housing mortgage loans may not be for everyone, if you have down payment saved or if you are able to have down payment funds gifted to you, you might be better off with a Conventional loan or an FHA loan, if you are buying a home in a rural area you may even want to look into the USDA Rural Development loan as well.
If down payment is holding you back I would definitely recommend checking into the Utah Housing loan, especially for the next couple of months while you can still take advantage of the $8000 tax credit being offered from the IRS, the $8000 can be used to pay back the Utah housing 2nd mortgage although there are limitations to how quickly you can pay off the loans with out incurring a penalty.
Click on this link for a list of frequently asked questions about on Utah Housing Mortgage Loans
You can also view the income limits in your county.
Or to find out more give me a call.
Stetson Lowe - Security Home Mortgage - 801-318-4996
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