Buying the first home can get insanely scary. After all, a home is the biggest investment of your lifetime. Besides, owning a home comes with so many perquisites. If you are buying your first home, Utah housing first-time homebuyer programs can help you finance the biggest investment. In this post, we feature why Utah housing first time homebuyer program is profitable. First, what does first time homebuyer programs refer to? Here is a simple definition:
The first-time homebuyer programs refer to the loans that are available to assist people become homeowners. Therefore, the first time homebuyer programs refer to a form of financial assistance availed to the qualified buyers. Therefore, the applicant must meet certain income restrictions and have a high credit score, compared to the home mortgage.
Keep reading to discover the benefits accruing from the first-time homebuyer programs Utah.
Table of Contents
1. The Buyer Is Left With More Cash-At-Hand
Some first time homebuyer programs Utah feature a low downpayment, while other programs do not require any down payment. Therefore, unlike the conventional loan where the first time homebuyer is required to pay 20% upfront plus the hefty closing costs, the down payment assistance programs leave the applicant with more cash at hand.
Therefore, paying for property maintenance does not feel stressful as the homebuyer already has some money to finance the maintenance cost and other basic requirements.
2. Assistance With Closing Fees
We have seen that the down payment programs can be such a lifesaver, and in different ways. Another away that the first time home buyer programs benefit the applicant is ensuring closing cost is affordable. Essentially, the amount that would be used to pay the downpayment can go into funding the closing costs comfortably. Therefore, financially constrained persons do not have to worry about funding the down payments, along with closing costs. Besides, some homebuyer assistance programs focus solely on helping the buyers to finance the closing cost.
3. Deferred Payments
Some first-time homebuyer programs Utah, feature payments that are forgiven, differed or subsidized until the mortgage property resale. Therefore, such programs can be of great assistance to first time homebuyers, since they provide flexibility when it comes to mortgage repayments.
4. Savings On Interest
Another great advantage of applying for the first time homebuyer programs has to do with saving on interests. For instance, the government-sponsored homebuyer programs feature friendlier interest rates compared to the conventional home loans. Therefore, the homebuyer will have a significant advantage when it comes to savings on interest.
Utah housing first time homebuyer programs provide an added advantage to the applicants. As illustrated, depending on the mortgage chosen, the buyer can enjoy significant savings on interest rate, have more cash at hand to pay closing costs, and property maintenance. Besides, the grant programs feature loan forgiveness. Therefore, the first time homebuyer programs Utah will help you in the home purchasing process.
Utah Housing First Time Homebuyer Programs
We have looked at some of the advantages of Utah housing first time homebuyer programs. Now, we explore the different programs for first time homebuyers. Each of these homebuyer programs features varying requirements to qualify.
1. FHA Home Loan
This is a Government-Sponsored home loan, available through the Federal Housing Administration. The FHA home loan is ideal for first time buyers with a low credit score and who cannot afford a high down payment to qualify for the conventional home loan. Therefore, the FHA home loan is classified under the first time homebuyer programs with low downpayment and friendly requirements. Borrowers qualify for the Utah FHA refinance.
2. USDA Home Loan
This is the second Government sponsored loan, available through the United States Department of Agriculture. The USDA home loan does not require any mortgage down payment. Therefore, the loan allows the buyers more cash at hand. That cash could be used to finance related closing costs.
3. VA Home Loan
This is another Utah housing downpayment assistant program, providing the buyer friendly loan terms. The mortgage is available to active-duty military members, veterans and their spouses.
4. Fannie Mae Or Freddie Mac
Borrowers with a healthy credit score nut cannot afford a high down payment qualify for this first time homebuyer program.
5. Fannie Mae HomeReady Buyer Program
Buyers who need assistance with closing costs and are willing to buy foreclosed property, can apply for the HomeReady program by Fannie Mae. The program allows the eligible buyers to receive up to 3% in closing costs assistance.
Conclusion
Are you struggling to finance your first home purchase? Apply for one of the Utah housing down payment assistance programs we have mentioned here. The homebuyer programs feature a myriad of advantages, making them the best for first time homebuyers in Utah. Talk to a mortgage broker near you, for assistance with the different homebuyer programs for first time buyers.
