Let’s Help First Time Home Buyer Through Home Buyer Program
First-time homebuyers may experience challenging times trying to navigate through the tedious process. One of the critical stages is securing financing, which is somewhat tough if you do not meet the requirements. Fortunately, first-time homebuyer programs Utah ease the experience and help first time home buyers achieve their homeownership dream.
In this article, we feature Utah housing first time home buying programs. The focus is to help first-time homebuyers understand the different home buying programs. Keep reading to discover the best options ideal for first-time homebuyers in Utah. But first,….
Why Use the First Time Homebuyer Programs?
You probably are aware that getting a good loan is important. This is especially if you are a first-time homebuyer. Consider that the first time homebuyers are struggling with getting their feet financially. Thus, friendly first time homebuyer programs Utah come as a great boost to the first time homebuyers.
The benefits of using Utah housing first-time homebuyer program comes in different forms. Here is an overview of the benefits of using first-time homebuyer programs:
- Down Payment Assistance Programs: First-time homebuyers may find it as hard raising the down payment. Often, the first time homebuyers even have a zero balance in their savings account. Utah housing down payment assistance programs help homebuyers who cannot raise the high down payment to qualify for a mortgage.
- Interest rates: The sponsored home buying programs focus on offering a stimulus to ensure affordable home loans for first time home buyers. This is by subsidizing or helping to pay the interest charges. Through such arrangements, the homebuyers who previously could not afford the high mortgage repayments resulting from high-interest rates can now borrow.
- Utah Housing Grants: This is in the form of free money and can be used to clear the closing cost. The housing grants can be used to fund the down payment helping to purchase a home.
- Friendly Credit Score Requirements: Utah housing first-time homebuyer programs feature friendly terms. This includes considering borrowers with a low credit score, which is a huge hindrance to homeownership.
Most homebuyer programs in Utah target the citizens who have never owned a home. However, some first-time homebuyer programs Utah help those who have owned a home before, so long as they have not owned a home within the past years.
Now that you understand why the first time homebuyer programs Utah are important, let us quickly shift the attention to different homebuyer programs for first time buyers.
The Federal Housing Administration created the FHA home loan, a program that helps to stimulate the housing market by providing affordable loans to homebuyers. The FHA insured home loan is popular among first-time homebuyers because it allows as low as a 3.5% down payment. The low down payment home mortgage is available to the borrowers with a credit score of 580 and above. However, borrowers with a lower credit score are not locked out of the FHA home loan. The borrowers with a credit score ranging from 500 to 579 qualify for the FHA first time home buyer program in Utah, so long as they can pay up to 10% down payment. First-time borrowers can take advantage of Utah FHA refinance.
The United States Department of Agriculture came up with the no down payment program to help low-income earners within the lower populated towns and counties. USDA home loan is one of the Utah housing down payment assistance programs providing first time homebuyers a better deal and better terms.
While most banks do not offer the USDA home loan, mortgage brokers will provide quick assistance. If you live in eligible rural areas, and your household meets the income requirements, you can consider the USDA down payment assistance program.
The USDA home loan requires low monthly mortgage insurance and comes with a low closing cost. It is available for a 30 years fixed rate and offers flexible qualification guidelines. The USDA home loan requires proof of steady income, a FICO credit score of at least 640, and a debt to income ratio of 41% or less. However, just like other Utah housing down payment assistance programs, the eligibility requirements can vary by lender.
Utah Housing Loan
This is another Utah housing down payment assistance program offering flexibility for first-time buyers who need assistance with the down payment and closing costs. The Utah Housing Corporation started way back in 1975 under a Utah legislation. The core purpose is helping the public create an adequate supply of money with mortgage loans at reasonable interest rates. Therefore, the UHC home loan is classified under the Utah housing down payment assistance program and helps in clearing the closing costs. The borrower should have a credit score of at least 620 and qualify for FHA or conventional mortgage.
Before seeking first-time buyer homebuyer programs, it is crucial that borrowers meet the various qualification criteria. Also, familiarize yourself with the definition of a first-time homebuyer to avoid disappointments. Consider that some government and nonprofit programs consider you a first-time homebuyer if you have not owned a home within the past few years.