$5,000 for down payment

Today’s Rates = Conventional: 4.625 % FHA: 4.50%

You may or may not know of a Utah County Grant program called Housing Services of Utah County. Their loan to own program has been very helpful for us over the years when funds are available. Here are details to help you know what your clients can and can't qualify for.

#1 Funds are limited: check http://housingservicesut.org/loantoown/ to see if funds are available.

Who Qualifies?
1. First Time Home Buyers
2. With Credit Score > 700, then DTI is 35% / 45%
3. With Credit Score > 650, then DTI is 33% / 43%
4. There can be no co-signers involved.
5. Borrowers must complete a Community Action Pre-Purchase Counseling Class ( which is free)

Income Limits

Family Size / Income Limit

1 / $35,200
2 / $40,250
3 / $45,250
4 / $50,300
5 / $54,300
6 / $58,350
7 / $62,350
8+ / $66,400

1. The client’s debt to income ratios meet HSUV guidelines (which is in the application packet)

Property Limits

1.Single Family Residence (single homes, condo’s, twinhomes etc. but no accessory apartments)
2.The purchase price of the home cannot exceed $ 232,305
3.Eligible Cities:
Orem
Lehi
Lindon
Payson
Pleasant Grove
Spanish Fork
Springville
Unincorporated Utah County (Rural farmland, not in an incorporated City)

4.If the home is NEWER than 30 years the client is eligible for $ 5,000 toward 2 the required down payment and the one time closing costs (does not include pre-paid items or reserves).
5.If the home is OLDER than 30 years the client is eligible for $ 15,000 which will pay for the one time closing costs (does not include pre-paid items or reserves) and the balance will go toward down payment.

Repayment

1. After the 1st 5 years the loan is forgiven at a rate of 20% per year until the end of the 10th year and the entire 0% interest loan is forgiven.
File goes through a loan committee and funds are awarded based on (a) availability and (b) need. In other words, just because a client may fit all the criteria funds could be awarded to a “more needy” applicant.

Time to Close

Process takes 2 to 3 weeks.

(share this link with your clients and have them call us if they have questions)