FINANCING - LITTLE OR NO DOWN

NOTHING DOWN MORTGAGES

There are several mortgages available which require little or no up-front investment or closing costs.  Government Programs available are

1. Utah Housing Corp.
2. St. George Down Payment Assistance
3. Rural Housing
4. VA Loans

We will discuss each one separately and outline their pros and cons.

UTAH HOUSING CORP.


Utah housing Corporation (UHC) loans allow an eligible borrower to borrow their down payment and closing costs.
Borrowers are able to purchase a home with little or no cash investment at a competitive interest rate. Up to 6% of the first mortgage can be borrowed for your down payment and closing costs in a second mortgage. The second mortgage is a 30 year fixed rate mortgage with an interest rate 2% above the first mortgage rate. First time Homebuyers, Single Parent, or Veteran. 660 FICO and income limits.

ST.GEORGE DOWN PAYMENT ASSISTANCE

The Down Payment Assistance Program (DPAP) offers a non-interest bearing loan payable when the home is sold or refinanced.  If the home is not sold or refinanced within 10 years then the loan becomes a grant and is forgiven.  The program provides up to $6,000 toward down payment/closing costs and is made available to homes located within St. George City limits.  First Time Homebuyer and Income Limits.

RURAL HOUSING

For rural areas in Utah, it is a true no money down loan.  There is an upfront mortgage insurance fee of 3.5% which can be added to the loan.  Rural housing loansare available anywhere (in Washington County) except St. George, Washington, Santa Clara, and parts of Ivins.  Income limits.
(Beginning on October 1, 2011 the 3.5% upfront gurantee fee will be decreased to 2% and a .30% annual fee will be assessed on the outstanding principal balance on both purchcases and refinances)

VA

The VA loan allows vetrans financing without private mortgage insurance.  A VA funding fee of 2.15% of the loan amount is paid to the VA; this fee may also be financed.  In a purchase, Veterans may borrow up to 103% of the sales price or reasonable value of the home.

Thanks, Rock Reber for this information.