A New Utah Bill Seeks to Help First-Time Homebuyers
/Today Carter Campbell with Houzd Mortgage will discuss a new bill from the Utah Legislature that helps first-time homebuyers.
The Utah Legislature recently approved a new bill for a First-Time Homebuyer Assistance Program which is aimed at helping first-time buyers get out of apartments and into homes. The bill will use $50 million in state funding to offer up to a $20,000 loan to eligible buyers looking to purchase new construction homes.
This is great news for anyone who has been previously priced out of the housing market due to higher interest rates and home prices.
Starting on July 1st, the loan can be used as down payment assistance, closing costs, or towards buying down the interest rate. The purpose of the new program is to encourage Utah builders to construct affordable housing while assisting families and individuals across the state in purchasing their first home.
The proposed funding is enough to help 2,500 first-time buyers purchase homes in Utah. However, in order to qualify for the loan, the single-family home, condo, or townhome must be located in Utah, priced under $450,000, and be new construction or newly constructed but not yet inhabited. The home must also be occupied by the owner upon purchase.
It's important to note that the loan acts as a lien on the house. If you decide to refinance or if you choose to sell the home, the loan money would be repaid to the state.
For many, the dream of owning a home remains just out of reach due to a lack of down payment. But, with this exciting opportunity, that could all change! Imagine checking off the box for the down payment and closing costs, all while securing a lower payment on a regular loan. No more struggling with the higher payments associated with Utah Housing or DPA Program loans. This could be your ticket to finally stepping into your very own home.
The benefits of the new bill are already being felt by families, such as one we are currently working with. This family was originally set on purchasing an existing home using Utah Housing (a 100% financing Down Payment Assistance Program). After discovering the potential benefits of the new bill, they decided to switch to a new construction home in a different area so they can get the $20,000. By avoiding a higher-priced Utah Housing loan with a second mortgage payment, they will save about $600 per month. It’s exciting to see firsthand how this new bill is making a positive impact on families and their financial futures.
If you're a first-time homebuyer looking to take advantage of this new assistance program – reach out to me or Carter and his team. We can review your situation and make sure you meet the requirements and eligibility criteria to qualify for the $20,000.