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 CLICK ON THE QUESTION FOR THE ANSWER......
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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:
- A complete copy of the Real Estate Purchase Contract with all signatures on
the contract and all applicable addendums.
- Most recent pay stub of all adults in the household.
- Most recent three (3) bank statements, where applicable.
- Information about loans and credit accounts, such as account numbers,
institution names, addresses, etc.
- W-2 forms from previous year
- Proof of Social Security number
- 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!
*Recapture is a federal tax that rarely affects Utah Housing borrowers. The following three conditions must be met before recapture tax takes effect:
- A rapid increase in household income, and
- The home is sold within nine years of the
closing of the mortgage loan, and
- There is a net profit on the sale of the home.
*For a complete description, obtain UHC form 048 - Recapture Notice, from UHC or a participating 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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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
- Too many delinquent credit payments.
- Monthly payments too high for the amount of income.
- Selecting a home which is too expensive for the amount of income.
- The selected home does not appraise high enough.
- Judgments, garnishments, foreclosures, or other legal actions
- Too new on the job.
- 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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17. How
much money do I need to have saved for down payment and closing costs before I
begin to think about buying a home?
- 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.
- 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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