Tuesday, February 21, 2012

First time home buyer Assistance Program

While I was getting information and taking classes for first time home owner. I learned a series of assistance programs available around Cache valley and Box Elder. I hope it helps people planning to buy a home with their down payment or closing cost. Some of them need to be repaid if you sell the house, others require to save certain amount of money and others will not need to by repaid after certain period of time.  I you know of any other program, please let me know and it will be added here.

First time home buyer Assistance Program:

1- BRAG Assistance
The Bear River Associaton of Governments will give $2,000 in unpaid settlement costs to applicants who complete the USU Family Life Center Homeowner Education Workshop atleast a month prior to buying a home. This is an all day workshop held the second Saturday's (and sometimes the third or fourth as well) every month at the USU Campus Credit Union. It is covers all aspects of financing and purchasing a home and I would highly recommend it regardless of if you will qualify on the extra monies. This must be repaid when the home is sold.
To make a reservation call the USU Family Life Center (435) 797-7224.

Bear River Association of Government(Brag):
Box Elder, Cache, or Rich Counties
Dolores (435) 752-7242

2-Uidan Individual Development account(IDA)  will match $3 for every $1 saved toward purchase of a home.

3- Welcome Home Own In Logan
This is a First time homebuyer program sponsored by Logan City, and the Neighborhood Nonprofit Housing Corporation. Qualified new buyers purchasing a single family detached home within Logan City Limits are given a $7,500 subsidy (can be used for downpayment and/or closing cost assistance) and does not have to be repaid if the buyer owns the house for atleast 10 years.

To qualify for this grant money the buyer must be a first time homebuyer (haven't owned a home in the past three years, those who currently own a trailer that is not on a permanent foundation, those who lease or own a condominium, and/or are a displaced spouse.
Income must be below 80% of the HUD median income guidelines for Cache County. This includes income for all persons in the household over the age of 18. Please refer to HUD's income guidelines.
Must meet the housing debt ratio of 36% and the total debt-to-income ratio of 38%. The borrower's house payment cannot exceed 36% of their gross monthly income. Total monthly debt payment (including house payment) cannot exceed 38% of their gross monthly income.
Certificate for attending a Home Ownership workshop at a HUD approved agency. For the Cache County area please contact the Family Life Center, (435) 797-7224, for the workshop schedule and registration.
Applicant must provide $500 in personal funds toward the down payment or closing costs, verified per the settlement statement. Gifts are eligible to meet this requirement.

4- Home Start
The Home Start Program is designed to help first time buyers "save" for their down payment. It is a partnership between local lending institutions and the federal government. Locally Zions Bank and Bank of Utah participate in this program. The HSP is designed to help you accumulate funds for your down payment and closing costs by matching every $1 you save (or are gifted) with $3, up to a maximum of $3,000 to $5,000 toward the purchase of your first home. For every year that you live in the home 1/5 of the HSP Grant is forgiven.
Utah Housing Corporation

5-Home Run grant.
What is the $6,000 Home Run Grant?
The Home Run Grant is a mortgage assistance program that grants $6,000 to home buyers who purchase a newly-constructed, never-occupied primary, single-family residence in Utah.  The Home Run Grant is funded by the Housing Relief Restricted Special Revenue Fund, established by Utah Governor Jon Huntsman, the Utah State Legislature, and Utah Housing Corporation.  

When is the Home Run Grant program being launched?
Governor Jon Huntsman signed Senate Bill 260 on March 19, 2009 to authorize Home Run Grants.

Who is eligible to receive a $6,000 Home Run Grant?
  • Home buyers must meet the following income restrictions:
    • Single person, $75,000
    • Married couple, $150,000
    • If more than one unmarried person is taking title to the Eligible Home, each such single person is subject to the $75,000 income limit.
  • Home buyers must occupy the purchased home as a primary, permanent residence no later than 30 days after closing.
  • If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.  Cash buyers can also qualify by contacting Utah Housing Corporation directly.
  • The Home Run Grant Program is effective for home purchases closed after a Home Run Grant Commitment has been issued for that specific transaction. Unfortunately the funds may not be used for homes purchased without the Home Run Grant Commitment.

6- Utah Housing (UHC) Help For First-Time-Homebuyers
Assistance with down payment and closing costs
See a Participating Lender to apply for UHC's homebuyer package:
  • A 30-year, fixed-rate FHA or VA first mortgage to purchase the home and
  • A small UHC second mortgage to pay for down payment and closing costs. (Second mortgage maximum amount is 6% of the first mortgage.)
Note: UHC does not take your application or process your loan. A Participating Lender assists with all details pertaining to your loan. After your loan is closed, UHC buys your loan from the Participating Lender and then you make your monthly payments to UHC.
Interest Rate Advantage
To reduce the amount of your mortgage payment, a UHC homebuyer loan package offers you a competitive or below-market interest rate without any discount points for your first mortgage and the second mortgage interest rate is only 2% higher than the first mortgage.