FHA UTAH HOUSING LOW INTEREST LOAN PROGRAMS - FIRSTHOME AND FIRSTHOME PLUS

The FHA Utah Housing Low Interest Loan Product is great (if your Lender will tell you about it) for the following reasons:

• The interest rate, fixed for 30 years, is typically 1/2 percent lower than Conventional and Regular FHA Loan Product. Current example:
  • 5.17% - FHA Utah Housing Loan.
  • 5.50% - Conventional Loan Product.
  • 5.50% - Regular FHA Loan Product.
• Buyer can borrow their down payment and finance their closing costs; Up to 6% of the purchase price.
• In my opinion as a real estate agent, it beats the Nehemiah Down Payment Gift Program because in a side-by-side comparison of the same property the Borrower is keeping more of any equity that may exist in the home.
• The FHA Utah Housing Loan is assumable to qualified Buyers - Typically, the Buyer will pay the Seller their equity.

The downside of having a FHA Utah Housing Loan are the following:

• You cannot rent your home - Problem solved by either refinancing your home with a Conventional or regular FHA Loan (which would allow you to rent) or you can sell.
• As with all FHA Loan Products the borrower must pay one year of Mortgage Insurance Premium up front (usually about 1.25% of the purchase price); However, these are almost always financed as part of the closing costs.

Buyers need to understand that Lenders do not make as much money on Utah Housing Loans and therefore are relunctant to tell Buyers about the program - Lenders would rather point you in the direction of Loan Products that they will make more money on. Also, not all Lenders are qualified to provide Utah Housing Loans or even FHA Loans and this too causes them to steer you towards products they do carry so that they do not lose a Loan.

Many Lenders, not knowing the facts, will attempt to intimidate a borrower that a recapture will occur when you sell the home or if you make too much income and will persuade you to go with another Loan Product. The truth is that Utah Housing is not aware of ONE recapture that has ever taken place and because of that "Utah Housing will reimburse Borrowers for any recapture tax paid or for a reduction in their tax credit caused by the tax...Recapture is no longer an issue for Utah Housing Borrowers! (From Grant S. Whitaker, Executive Vice President, Utah Housing Corporation  -- Memo Dated 7/18/2003)"

Based on the Cache or Box Elder County location of the home you wish to buy and household size, the total Household Income from all sources must be less than the Income Limits shown in the box below.

Keep in mind that the home can be purchased anywhere in Cache & Box Elder Counties as long as the purchase meets FHA and VA guidelines, the Purchaser is going to owner occupy the residence, and income & purchase price guidelines are met. As an added incentive there also exist Target Areas (See below).

The income requirement must NOT be exceeded for the proceeding 12 months (and in the next projected 12 months).

Contact Brady Pierce at (435) 787-8351 to be referred to a participating Utah Housing Lender in Cache & Box Elder Counties. 

ELIGIBLE INCOME LIMITS FOR FHA UTAH HOUSING FIRSTHOME & FIRSTHOME PLUS PROGRAMS

Cache & Box Elder Counties

Logan Targeted Area

Household Size: 1-2 3+ Income Limits: $57,000 $65,500

1&2 3+ $68,500  $79,500

CONDITIONS & PURCHASE PRICE LIMITS FOR FHA FIRSTHOME & FIRSTHOME PLUS Home may be an Existing Home or New Home and may be located anywhere in Cache & Box Elder Counties as long as they meet FHA or VA guidelines. They may be Single Family Homes, Twin Homes, Manufactured Homes, PUD's or Condos. Some restrictions apply to Manufactured Homes, PUD's and Condos. If contemplating the purchase of a Manufactured Home, PUD or Condo, you should contact Brady Pierce at (435) 787-8351. Buyer must owner-occupy the residence after the purchase (Which means you cannot rent it out while you have a Utah Housing Loan - years from now you can refinance your loan to a Conventional Loan or to a regular FHA Loan Product if you plan on being a Landlord).  The maximum purchase price may NOT exceed the cost limits shown below: PURCHASE PRICE LIMITS FOR NEW CONSTRUCTION & EXISTING HOMES Cache & Box Elder Counties Total Purchase NOT to Exceed: $160,176 UTAH FHA FIRSTHOME AND FIRSTHOME PLUS TARGETED AREAS Certain areas in Logan, Utah are designated by the Federal Government as being a Targeted Area. To promote home ownership within this area to eligible Homebuyers the following advantages apply: No previous home ownership restriction (meaning a Buyer is considered a First Time Homebuyer again even though they owned a home in the previous three years - which means they can take advantage of the lower interest rates a Utah Housing Loan offers (Currently 5.17% 11/2004);  Household income limits are higher; and Tax returns are not usually required to approve the loan. WHERE IS THE FHA UTAH HOUSING FIRSTHOME AND FIRSTHOME PLUS TARGETED AREA IN LOGAN, UTAH? Click on the above photo to enlarge the Target Area. In brief, the area is the east side of Main Street from 100 South to 700 North and east of 800 East to the most northern part of the USU Campus along 1400 North and cutting south along 1200 East, it includes the nieghborhood around Adams Park, and the area around the Logan LDS Temple. The southern boundary is from Main Street varying from 100 South to the Boulevard (above Canyon Road) and varying again to 400 North (Highway 89) to the corner of 1200 East. If you would like a map or have questions please contact Brady Pierce at (435) 787-8351 or email him at bradypierce@comcast.net.