Utah Housing Loans
The Utah Housing Loan Program is a second mortgage that provides up to of the sales price to be used for the 3.5% down payment requirements of an FHA loan and/or closing costs and prepaid items. It is a 30 year loan and is offered at a rate 2% higher than your first mortgage rate. Sometime the Utah Housing Loan is competitive with their rate but often time it is not. That is one of the down sides to the program. Another downside, is if you ever wanted to refinance your 1st mortgage, Utah Housing will not subordinate their position which means you generally have to pay the second mortgage off before you can refinance your loan. Here are some eligibility guidelines:
· Be approved for an FHA 30 year fixed rate loan with Compass Lending Solutions
· Unless a Single Parent or purchasing a home in a targeted area, borrower must be a first time homebuyer (cannot have owned a home in the last 3 years). Contact us for more details.
· Income and Sale Price of the property cannot exceed limits listed below.
· Minimum credit score of 660 for everyone on the loan documents (must have at least one credit score).
· The property cannot have a second kitchen.
· Borrower(s) cannot rent any portion of the home the entire time there is an outstanding UHC loan.
· Condo's and PUD's are acceptable if they meet FHA/VA guidelines.
· Non-occupant co-signors are allowed.
· If any recapture tax applies UHC will reimburse the tax.
· Income Limits are calculated for the upcoming year (not the past) and range from $64,000-$95,000
· Sale Price Limitsrange from $243,600 to $637,500 depending on County.
Contact Compass Lending Solutions today for more details or to get pre-approved for this program.
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