How to Get Maximum from Utah Housing First Time Home Buyer Programs

How to Get Maximum from Utah Housing First Time Home Buyer Programs

Buying a home for the first time can be very exciting. However, it involves many procedures and processes. Therefore, if you are not careful enough, you can make a costly mistake. Getting maximum return from Utah Housing First-time home buyer programs, it is advisable to seek assistance from knowledgeable mortgage consultants if you are not well vast in the industry. He/she will take you through from start to finish making the whole process as easy as possible.

As a first time homeowner in the state of Utah, there are several first time home buyer programs available for you to choose from when shopping for your mortgage. This post will look at some of the available first-time home buyers programs in Utah and fully maximize them.

But First, Who Is Considered a First-Time Homebuyer?

From a mortgages point of view, a first-time homeowner refers to:

  • He/she has not owned any home property for the last three years.
  • He/ she has owned a home but with a former spouse but is now single parenting.
  • The person has been living only in non-permanent, i.e., mobile homes.
  • Has been living in non-permanent homes that did not comply with required building laws.
  • He/she has been displaced as a homeowner but only owning the said home with a former spouse.

The First Time Home Buyer Advantage

Owning a home is a key aspect of the American dream. As a result, as a first-time homeowner, you have advantages such as state programs, tax breaks, and federal backed up loans if not able to pay the required 20% mortgage down payment. You don’t have to be a member of a certain group. You may also qualify for a first-time home buyer loan even as a novice. Additionally, the state of Utah also provides efficient Utah housing down payment assistance programs.

FHA Loans

The Federal Housing Administration backs up this loan to protect lenders from possible financial risks. FHA Loans comes with a down payment of only 3.5% of the home property’s total cost, making it a good option for a first-time home buyer who cannot afford the required 20% down payment. FHA Loans also attract better interest rates than conventional loans, and insurance helps offset the higher risk of default. For that reason, Utah FHA refinancing is very easy and affordable.

Conventional Loans

A conventional loan qualifies as Utah housing first time home buyer program as long as the borrower meets the required criteria. A conventional loan is neither insured nor guaranteed by any government agency, and the borrower usually pays their insurance. These mortgage loans may have fixed or adjustable rates, and normally a 20% or more down payment is required. However, you can also qualify for a conventional loan even with a less than 20% downpayment. You will be required to pay private mortgage insurance (PMI) for that conventional loan in such a scenario. Some conventional mortgage loans conform to Fannie, Mae, and Freddie Mac guidelines, making them conform to loans; thus, they can be backed up by private and government agencies.

VA Loans

Another first-time homebuyer program in Utah is the Veteran Administration home loan (VA). This loan is available and backed up by the veteran’s affairs department to the armed forces’ members. The loan allows 103% financing, and therefore a veteran can own a home with zero down payment and finance the required closing costs.

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USDA Loans

USDA loans fit as a Utah housing first time home buyers program. This loan is backed up by the United States Department of Agriculture, aiming at providing healthy and sustainable rural communities with decent homes. The USDA loans require no down payments, and the interest rates are significantly low, thus appropriate for low to moderate-income earners.

Utah Housing Loans

Utah housing loans are a perfect fit for those homebuyers who need help with down and closing cost payments. This is because it is a zero-down loan program offering flexibility for such buyers, thus making it possible for low to moderate-income earners with safe and affordable housing. They are accessible by first-time homebuyers as well as homebuyers who have previously owned a home. The Utah housing downpayment assistance can help you if you face the challenge of cash at closing.

Other Requirements for You to Qualify for Utah Housing Loans Are:

  • Your credit history has to show that you pay your bills on time.
  • Have at least a credit score of 620
  • The total of your gross household income should fall within established income limits restrictions (these restrictions vary by county)
  • Must be able to qualify for a government FHA or conventional financing.
  • You must live in a home and not purchasing as a rental.
  • Non-occupant co-signers are allowed but only in the first time loans.

Importance of A Good Credit Score

Having a good credit score comes with a lot of benefits when seeking a mortgage loan. It provides you with competitive interest rates, among many others. You will need a good credit score to buy a home in Utah.  The general rule is that a credit score of above 620 is required. However, the credit score varies for VA and FHA mortgage applicants.

Your credit score also determines your mortgage insurance. A good credit score reduces your mortgage insurance. Therefore, if you are looking to buy a home soonest, there is a need to work on your credit score, improving it as much as possible.

Tips On Raising Your Credit Score to Qualify for First Time Home Buyer Programs in Utah

  • Practice making payments on time. You will not be negatively listed by creditors.
  • Pay off debts. Even if it is hard to have zero debt, ensure that your debt-to-income ratio is good for a better credit score.
  • Establish a good credit history. This will allow creditors to see your on-time payment history, thus building confidence with you compared to having a bad or no credit history.