Utah Housing First Time Home Buyer Program

Buying your first home in Utah? The Utah Housing First Time Buyer Zero Money Down program may be your best financing mortgage option. If you have owned a home before, there are some exceptions to being a first time buyer for which you may qualify. This page will give you most everything you need to know about the Utah First Time Home Buyer program.

Here are the reasons why it is good for you, the homeowner.

1. Great interest rate. Interest rates adjust every Friday depending upon the mortgage market. Interest rates usually are slightly below market rate. Call me for updated rates.

2. No money down. Utah housing requires a 3.5% down payment. However, that 3.5% down as well as up to 3% of closing costs can be financed using the Utah Housing PLUS program. This means you can get into a home with no money down.

3. Affordable payments. Conventional 100% financing programs have disappeared so this is one of the best options for First time home buyers for zero down payment.

4. Most homes will qualify (under the price limits). The home must be located in Utah. They can be a single family, twin, manufactured PUD or condo. Some restrictions apply for the manufactured, PUD and condo’s so just call me before making the offer.

What are the restrictions? There are several restrictions using the Utah Housing First Time Home Buyer program.

1. Income limits. If your income is too high, then you cannot use this program. Income limits are different in some counties but if you make less than about $65,000 for 1 or 2 people in the home or $75,000 for more than 2 people, your income may qualify. Some counties are a little higher in income.

Exceptions exist for higher income in “targeted areas”. This is explained below.

2. Purchase price limits. Utah Housing Limits as of 2010 are:

Salt Lake, Tooele and Summit Counties $637,500

Davis, Morgan, and Weber Counties $357,500

Wasatch County $376,500

Utah & Juab County $356,000

Washington and Kane County $335,000

All Other Counties $243,500

How does the Utah Housing program work? Here are some basic guidelines:

A Utah first time home buyer is defined as “someone who has not lived in a personal residence they owned during the past three years”. That means one you have gone three years without owning a home, you are again considered a First Time home buyer. Exceptions to this rule exist so that even those that have owned a home in the past 3 years can still use the program.

Exceptions include:

1. Single parents. If the borrower is a single parent, no previous home ownership restriction applies and you are qualifed to use the Utah Housing First Time Home Buyer No Money Down program.

2. Targeted areas have higher income limits and no previous home ownership applies.

What are “Targeted Areas” of Utah for Utah First Time Buyers?

Certain areas of Utah are designated by the Federal Government as “targeted areas” to promote home ownership. These areas have no previous home ownership limitation and higher income limits. INcome limits for each of these areas are about $20,000 higher than mentioned above

Targeted areas are:

Entire counties of: Duchesne, Garfield, Iron, Juab, Piute, San Juan, San Pete, Utah and Wayne.

Portions of Salt Lake, South Salt Lake, Midvale, Logan and Ogden. (Call me for detailed information on these areas).

Are their any pitfalls or disadvantages?

There really are no disadvantages. However, there are a few things to be aware of about the Utah Housing program.

1. Income. If you have a spouse, partner, roommate, etc that is not listed on the loan, their income will still be counted as household income. Just realize that income limits is for “household” income, not just the person who is obtaining the loan.

2. Recapture. This has been effectively eliminated. Listed in the loan is a provision for a “recapture fee”. This fee is possible for those that sell their home within 9 years and realize a profit or whose income has increased rapidly.

HOWEVER - Utah Housing states they are unaware of anyone ever having to pay this recapture fee. They further state that if anyone does have to pay, they will fully reimburse that person for that fee. There are no worries about having to ever pay this recapture fee.

There you have it! As you can see, Utah Housing First Time Home Buyer Program offers a great benefit to many with below market interest rates, fixed interest rates, no prepayment penalties and no money down. What else can you ask for, besides maybe the best dang loan officer in the state who is an expert at this program?

Call Ron Pippin, "The Loan Doctor" for more information on this program.

You can also go straight to Utah Housing website for additional details