One of the hardest parts of buying your first home is getting the money you need for down payment (Usually 3.5 % for FHA loans and 3-20 % for conventional). On a $200,000 home that is $7000 to $40,000 depending on the type of loan you have. Pocket change sez you…ha ha sez I (no, I don’t know what that means, I just wanted to be a pirate for a second).
Now if that is scaring you off of buying a home, don’t cry little buckaroo. There are programs available especially for first time homebuyers that will help you with the money for down payment that you need. These are in the form of:
- Utah Housing– a state run program that will grant up to 103% financing of sales price to assist first time homebuyers with down payment and/or closing costs.
There are income limitations and also debt to income limitations, plus credit score in the mid 600s.
- City Grants– There is grant money available in various cities throughout the Wasatch Front that will grant you up to 5-10,000 in money toward down payment and closing costs.
Again, there are restrictions on price of the home, debt to income, and now most cities have criteria on credit scores as well. These cities also have different criteria on their grants as well. Some cities require you to make an offer first, then present the REPC (purchase contract) as part of the application process. Some cities require you to apply first, and look after you have been accepted. Some of the cities that have grants are West Jordan, West Valley City, Magna, Sandy, Taylorsville, Salt Lake City, Ogden, Tooele, Eagle Mountain, and Lehi. Your lender should be able to tell you who has money at the present time.
Just remember that not All cities have grants for first time homebuyers, and the cities that do have down payment assistance grants, are limited in funds and sometimes run out of money. So…if you are going for grant money, be sure to keep in touch with your lender.
As always, if you have questions,