A first-time home purchase may seem daunting at first. Help, though, is not in short supply. First-time homebuyers in the Beehive State can find many resources, including assistance, counseling, and classes, in the state.
New home buyers in Utah can take advantage of attractive mortgage assistance programs. Moreover, you may qualify for a grant or loan to cover your closing costs and down payment. Have you finally reached the point where you can begin the home-buying process?
Buyer's Guide to Homes in Utah
Based on data from the Utah Association of Realtors, the state's median home price in May 2022 was $520,000. By comparison, that median increased by 26.6% annually. However, first-time purchasers may qualify for subsidies, making the increased prices more manageable.
In Utah, the average credit score is 2,727. Maximum You can "borrow your full minimum necessary down payment plus all or a portion of closing costs" with a Utah Home Buyer Grant3 UHC second mortgage.
The median property price in a state determines the minimum down payment required. To qualify for the "minimum" down payment on a conventional mortgage, your credit score needs to be at least 620.
For example, a VA loan (sponsored by the Department of Veterans Affairs) or a USDA loan (supported by the U.S. Department of Agriculture) might not require a down payment.
Utah's first-time buyer mortgage program
First-time buyers in Utah who can come up with a 20% down payment can qualify for a low-interest conventional loan. No PMI (Private Mortgage Insurance) premiums are ever required (PMI). Any buyer in the country is treated the same.
Unfortunately, just a minority of first-time buyers can afford a 20% down payment. The good news is that you can do without one. Using one of these low-down-payment mortgage options, Utah homebuyers may typically purchase a brand-new house with as little as 3% down.
Standard 97: Brought to you by Fannie Mae or Freddie Mac. Minimum FICO credit score of 620 and 3% down payment required. With an FHA loan, mortgage insurance premiums are often waived after only a few years and supported by the FHA (U.S. Government Housing Authority). You'll need at least a 580 credit score and 3.5% down. However, mortgage insurance premiums (MIP) are required until you refinance into a different mortgage, move out of the property, or pay off the debt in full.
Loans for veterans and their families
These discounts are reserved exclusively for our nation's heroes and their families. There will be no initial outlay of money needed. Lender-specific requirements for a minimum credit score tend to range from 620 to 750. There will be no need to pay monthly mortgage insurance costs after the loan closes. A USDA loan could be the most incredible mortgage option if you meet the requirements.
Assists buyers with modest incomes who reside in rural areas set aside for this purpose. There is no initial deposit needed. Lenders' minimum credit score requirements may range from 640 to 850. Reasonable premiums for mortgage protection
Home loan from the Utah Housing Corporation: One of these could be used with a second mortgage to pay for the entire down payment (often between 3 and 3.5 percent of the home's purchase price) and possibly even some of the closing costs. Read on for further details.
To qualify for a government loan (such as the FHA, VA, or USDA), you must use the property as your primary residence. Only single-family homes or properties with four or fewer units are eligible. That rules out buying a second house or an investment property with the loan.
Gift funds or down payment help may be used for closing costs and the down payment on most programs. So, picking the right lending program means you might be able to buy a house with little to no money down. First-time homebuyers may need guidance from a loan specialist to determine which first mortgage program best suits their circumstances.
Funding for first-time homeowners in Utah
There are three different types of down payment assistance loans provided by the Utah Housing Corporation. Homebuyers whose principal mortgage is being funded by UHC are eligible for these.
First-time homebuyers can get up to 6% of the loan amount to go toward the down payment and closing expenses on a mortgage loan. Credit Score Floor 660
UHC claims that borrowers can "borrow all or part of the minimum necessary down payment plus all or a portion of their closing costs" using these loan options.
Each of the three down payment aid programs is structured as a 30-year second mortgage, meaning that repayment will be in addition to your primary mortgage. Your new interest rate will be 2% more than your original mortgage rate.
