Owning Your Own Home
The following list is a guide to different kinds of loans available to purchase a home. For additional information, please contact the Community Development Corporation of Utah (801) 944-7222
RURAL DEVELOPMENT GUARANTEED LOANS:
Assist very low and low-income families and individuals with closing costs, application fees, origination fee, and title insurance. Up to $5,000 may be requested per applicant for leveraged, non- leveraged and low-income guaranteed loans.
FEDERAL HOUSING ADMINISTRATION (FHA) LOAN:
Requires 3 0own payment and 2 ½ to 3losing costs. The loan is 97% Loan to Value (LTV) of appraised or purchase price, the lower of the two. Loan limit varies with the area of the state.
FEDERAL HOUSING ADMINISTRATION (FHA) 203K LOAN
An FHA insured mortgage that allows homebuyers to finance rehabilitative costs over the term of the loan. Minimum amount of repairs is $5,000. A licensed contractor must be responsible for the work done, and it must be completed within six months of the time the loan closes.
CHAMP (Comprehensive Housing Assistance Mortgage Program), UTAH HOUSING FINANCE AGENCY:
Similar guidelines to the FHA (Federal Housing Administration) Loan with a below market interest rate. The 4% CHAMP assistance (2nd mortgage) is a credit given at closing which reduces the cash required to close.
CHAMP Limits/Utah Housing Limits
Maximum Income Range: $22,500-$29,000* $ 20,000-$ 50,000*
Maximum Purchase Price: $92,500* $110,000-$133,000*
*Utah Housing Finance Agency (801) 521-6950 or (800) 521-6950 (Leave your name and address, and they will mail you a brochure.)
NEHEMIAH HOME OWNERSHIP 2000:
The seller remits 40f the purchase price to the Nehemiah program, a nonprofit corporation. Nehemiah provides 3 0own payment to assist the buyers at closing. FHA (Federal Housing Administration) guidelines are used for the loan. FHA permits charitable organizations to provide gift funds toward a buyer's down payment and closing costs.
Each of the programs require that the buyer's credit report be acceptable (see loan). This means that judgments and/or collections must be paid. A bankruptcy must be cleared up. Both may need to be seasoned (given time to show that good credit practices are now being used): two to four years of good credit, and/or acceptable items on the credit report.
Find information on the CHOICE Loan.