Buying a home can feel out of reach financially, especially when the housing market is active. Fortunately, there are homebuyer assistance programs available to help bring your dream of buying a home into your reach! From offering adjusted loan requirements, flexible terms, and grants to assist with down payments, there are a variety of options that could help you move into your dream home sooner than you think.
VA Mortgage Loan
This mortgage loan is insured and backed by the U.S. Department of Veteran Affairs (VA) and enables lenders to provide more affordable interest rates and flexible payment terms for borrowers.
With a VA loan, the down payment may be as low as 0% of the home value and mortgage insurance is not required, making this option much more accessible to those who qualify. Additionally, these borrowers can expect to pay similar or even lower closing costs in comparison to other types of mortgage loans.
FHA Mortgage Loan
This type of mortgage is also insured by the government, through the Federal Housing Administration (FHA). This backing allows lenders to offer better mortgage terms and more affordable deals to borrowers.
FHA loans will typically require a much lower down payment, offer similar or lower interest rates, and require a lower monthly payment than a typical conventional loan. This can be a great option for borrowers who may be needing more flexible credit requirements or who are looking for financing for mobile or manufactures home.
USDA Mortgage Loan
The U.S. Department of Agriculture (USDA) insures this type of mortgage loan. This is available for home buyers who are purchasing or refinancing their home in an area that is not considered a major metropolis area by the USDA.
With a USDA loan, you can receive up to 100% financing on your loan, with no down payment required. These loans offer competitive interest rates, and the down payment and closing costs of the loan can be combined with gifts or grants from other parties or agencies.
The Home$tart Grant awards $5,000 to the borrower to use toward closing costs and/or down payment funds. Borrowers are required to complete a home buyer training class, which can be completed online and provides information about mortgages and home ownership.
Wasatch Peaks Credit Union is currently the only credit union in Utah to offer this program. The eligibility for this grant requires that the borrower has not owned a home in the past three years. Additionally, the grant is available based on the household income of the borrower and does have limits on the purchase price of the home. There is a 5-year residency requirement and if the home is refinanced or sold within the first five years, a portion of the grant must be repaid.
Utah Housing and Local Programs
Our mortgage specialists also work with Utah Housing, Own in Ogden, Davis Community Housing Authority, and Weber Housing Authority to find grants and programs that may be applicable to borrowers in their local area. These programs may be able to offer down payment or closing cost assistance for eligible borrowers or even offer special loan options for first time buyers.
Buying your very own home may be more attainable than you think! These loans, programs, and grants are available to provide assistance to potential home buyers as they make their dreams a reality.