1st Up Utah Rural Housing Loans

 

 

Rural Housing loans are one of the most affordable loans available. Ha, you say, all loans are affordable right now, and if you are saying that you would be correct.

Most mortgage loans are available for less than 5%  interest rates, But….and this is a big BUT for most folks these days, this is one of the only loans available with 100% financing…that’s right, 100% financing.  Happy Dance Here!

100% financing makes us do a happy dance

Other Benefits Of Utah Rural Housing Loans

  • Less Mortgage Insurance– unlike FHA or any loan that you don’t have 20% down with, there is much less mortgage insurance on this loan. AND….you can finance it into the loan so that you have nothing out of pocket. ( I don’t know about you, but I would much rather Me have that money…than the bank, am I right?
  • No Down Payment required– even HUD homes require a down payment these days (well plus $1000 in earnest money). VA loans are the only other mortgage loans that do not require a down payment.
  • Rates are comparable to other interest rates available. Right now, they are killer…you would never have to refinance this loan! (You will need to check with your lender to find out current rates for Utah Rural Housing Loans).

Requirements for Utah Rural Housing Loans

Yes, I know, there is no free lunch, so here are the basic requirements on Utah Rural Housing Mortgage Loans

  • Income limits- this is based on the number of persons in your home and other mystical math calculations but here it is :  1-4 people in household max income (for Utah Cty)1-4 people in family $77,750 for 5-8 people in household max income $102,650.  For Tooele County  1-4 $82,800, 5-8 $109,300.
  • Your debt to income ratio must not exceed 41% (This is the amount of your proposed monthly payment (principal and interest), real estate taxes, insurance, and other credit debts cannot exceed 41% of you gross monthly income)
  • Your Housing debt to income (house payment) cannot be more than 38%
  • You must have a good credit score (this is another one you should check out with a lender, rule of thumb 660)

And the biggie….this is a Rural Housing Loan.  So you must purchase your home in a more rural area, but that does not mean you have to live in a log cabin in the nether reaches of the Oquirrah mountains or on a farm some where miles from the nearest neighbor.

For the most part, rural housing would be places like Tooele County, Eagle Mountain, Saratoga Springs to name a few. So if you work around the 1-80 corridor, near the airport, or down south, these communities would be great for you!
The communities are all great, (we happen to live in Saratoga Springs, so we know…) with newer homes at reasonable prices.  What you could buy for $300,000 in Salt Lake County, you could easily purchase for under $250,000 in these areas. This is because the land value is less in these communities and in reality, there IS more land available.

There are also new construction homes in these communities that are also less expensive  than these same builders are building in Salt Lake County.  Call or text us for a list of these builders at 801.819.9005

Available Homes For Rural Housing Loans

 

 

Utah Housing Loans

 

In the past, a Utah Housing loan was available only to first time homebuyers. The idea here was to allow those lower income folks who were just starting out a way to enter the housing market without having to save up thousands for both a down payment and closing costs (at the very least 6% of the purchase price and sometimes more. This could add up to being required to come up with $6-7 thousand dollars on just a $100,000 house!)

Now, however, Utah Housing has expanded their programs to include “Returning buyers” and those whose credit scores are a little lower than the minimum standard required for Utah Housing. ( Doing my Happy

A Utah Housing Loan is not just for 1st time homebuyers any more.

Dance Here!) The programs are called the HomeAgain Loan and the Score Loan. All Utah Housing loans are FHA loans (good rate, great loan) with a 2nd mortgage through Utah Housing to cover the down payment.

The HomeAgain Loan can be used by those who qualify under Utah Housing Standards but this loan is not restricted to first time homebuyers.  There are income limitations , debt to income restrictions, and you must have a credit score the same as Utah Housing requires.  Call us for details on this to see if  the HomeAgain loan would work for you.

The Score Loan  is for those who can qualify for a home with income, but might have a little lower credit score (620-659).  This loan is issued at a little higher rate (because of the increased risk associated with lower credit score), but it is still an affordable loan with Utah Housing and it is still a 100% financing loan.  Now ya don’t see too many of those lately…do ya!

So, Utah Housing loans reach a lot more people now, and might just give you the opportunity to become a homeowner.

Available Homes For Utah Housing Loans

Stay Tuned For More Loans For 1st Time Homebuyers…Next Up…FHA