1. What are the benefits of using the Utah Housing programs?

1. Saving money on interest payments.
2. Qualifying for a larger mortgage amount.
3. Receiving assistance with down payment and closing costs (for FirstHome Plus only).
4. Buying a home sooner.

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2. Which Utah Housing programs can help with the purchase of a home?

1. FirstHome - for low and moderate income households
2. FirstHome Plus - for low and moderate income households which need downpayment or closing costs assistance

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3. How are Utah Housing's programs different from other loans?

1. Lower interest rates
2. Lower house payments
3. Down payment and closing cost assistance
4. Specific requirements for the following:
   1. Household Income
   2. Purchase price of the home

4. Is it harder or more time-consuming to get a Utah Housing loan?

The paperwork for a Utah Housing loan is very similar to any other FHA or VA loan.

To make the process as fast as possible, take the following items with you when you make application:

1. A complete copy of the Real Estate Purchase Contract with all signatures on the contract and all applicable addendums.
2. Most recent pay stub of all adults in the household.
3. Most recent three (3) bank statements, where applicable.
4. Information about loans and credit accounts, such as account numbers, institution names, addresses, etc.
5. W-2 forms from previous year
6. Proof of Social Security number
7. Verification of other income such as child support, alimony, etc.

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5. What is Recapture and how might it affect me?

AT LAST! UTAH HOUSING CORPORATION has taken the confusion and worry out of recapture!

For borrowers getting a UHC loan commitment after July 23, 2003 who may have to pay this tax, Utah Housing will REIMBURSE them for recapture taxes paid. It's that simple!

6. What are the qualifications for obtaining a Utah Housing loan?

1. You may not have owned your personal residence during the past three years (except when using the FirstHome Program and buying in a Targeted area).
2. You must meet the Household Income limits.
3. The home you buy must meet the Acquisition limits (purchase price).
4. You must live in the home (no rental of home allowed) you buy under the program.
5. Have enough income to meet all financial obligations.

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7. What are the recommended steps in obtaining a Utah Housing loan?

1. Obtain free Homebuyer training.
2. Pre-qualify through a Participating Mortgage Lender.
3. Locate an affordable home you want to buy.
4. Enter into a real estate contract to buy the home.
5. Have the property carefully inspected.
6. Apply for your Utah Housing loan through a Participating Mortgage Lender.

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8. How do I obtain Homebuyer training?

First-time homebuyers should receive training before shopping for a suitable home or before actually applying for a mortgage loan. Adequate training can save money, help in selecting the correct home, and help avoid disastrous repairs after the property has been purchased.

In addition to many excellent books available at local libraries, click here to see sources for specific training in our state, or contact the nearest Housing Authority to see what other training sources may now be available.

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9. What kind of home must I buy and where must it be located?

1. Eligible homes may be located anywhere in Utah and must meet FHA or VA guidelines.
2. Homes may be new or previously occupied and may be single family detached, twin homes, certain condominiums, certain PUD's , and certain manufactured homes.
3. The total purchase price of the home may not exceed the Acquisition Cost Limits.

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10. Can a Utah Housing loan help me with debt consolidation or help me lower my current interest rate?

- Debt Consolidation - Sorry, Utah Housing loans may not be used for debt consolidation.

- Refinances - Sorry, Utah Housing loans may not be used to refinance existing debt (other than a construction loan).

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11. What are current interest rates and is there any Utah Housing money available right now?

To obtain daily updates regarding the availability of Utah Housing funds and the current interest rates, call the 24 hour UFHA InfoLine at 801 902-8300 or call our toll free line during business hours at 1 800 284-6950 to be connected to the InfoLine.

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12. Does Utah Housing Provide Rental Assistance?

Sorry, we do not offer rental assistance directly to individual households. City and County agencies often sponsor those programs. You may either look in the phone book or click on the words Housing Authorities to find out who might help you.

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13. Do I have to be on a Waiting List to obtain Utah Housing funds?

Utah Housing does not need a waiting list because lender requests for homebuyer funds are met as they are received.

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14. What are common reason for loan denials?

Following are some common reasons for the denial of loan applications. Because there are many exceptions and special circumstances which can allow an approval, do not hesitate to discuss the particulars of your circumstances with a Participating Mortgage Lender.

Reasons for Loan Denial

1. Too many delinquent credit payments.
2. Monthly payments too high for the amount of income.
3. Selecting a home which is too expensive for the amount of income.
4. The selected home does not appraise high enough.
5. Judgments, garnishments, foreclosures, or other legal actions
6. Too new on the job.
7. Credit score too low

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15. Can Utah Housing loans be assumed?

Utah Housing loans can be assumed by qualified buyers. The servicer for each Utah Housing loan can discuss the particular qualifications to be met by the assumer and/or the property.

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16. Can I afford the payments for a home I would like to purchase?

Use our Mortgage Calculator to help with that determination.

17. How much money do I need for down payment and closing costs?

1. If you and your selected home qualify for the FirstHome program, your required cash will be greater because there is not a second mortgage to assist you. Cash requirements for FirstHome would generally be from 4% to 7% of the purchase price of the home selected and could again be from personal savings or from other sources.
2. If you and your selected home qualify for the FirstHome Plus program with its 2nd mortgage to assist with down payment and closing costs, your required cash could be as little as $10, depending on the factors involved. It you do not personally have all the required funds saved, they can also be contributed by family members or others. Feel free to discuss the details of your situation with a Participating Mortgage Lender.

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