In the past year, as a result of the pandemic, the need for mortgage loans has risen and some aspects of the housing market have changed. This is because some lenders are taking precautions to protect themselves in the case of future financial losses. However, there are still a lot of Utah down payment assistance programs available for those who know where to look.
Here, Home Savings Fund offers some more information about finding homebuyers down payment assistance during the COVID-19 pandemic.
What Exactly is Down Payment Assistance?
Before continuing, it’s important to understand precisely what down payment assistance is to get an idea of how it can help you. In the simplest sense, Utah down payment assistance is funds provided by nonprofit groups like Home Savings Fund, or state and local housing authorities that can be used for down payments or closing costs.
How Do Down Payment Assistance Programs Work?
Such programs actually work quite simply. Homebuyers receive financial assistance (a flat rate or percentage of their overall down payment) in form of interest-free loans or a grant that doesn’t need to be paid back.
What Are the Requirements?
There are some requirements when it comes to getting a Utah down payment assistance grant or loan, such as beneficiaries use their mortgaged property as a primary residence, as well as commit to remaining in the home for a specified period of time. For those who received a loan, that money will often need to be repaid if/when the home is sold.
Changes Due to the COVID-19 Pandemic
There have been a few changes to homebuyer assistance programs due to the pandemic, the first being that many of the applications are now done solely online. Many of the homebuyer assistance programs that require beneficiaries to undergo educational training also have made such courses available online.
Lastly, some have taken the move of suspending their operations for the time being. However, this makes up for less than two percent of the companies nationally, meaning a small fraction.
Contact us today for more about Utah down payment assistance!
For more information about down CDCU payment assistance for buying your Utah home, contact us online today or call (855) 369-7283.