Finding the Right Mortgage Down Payment Assistance
Buying a house is one of the most exciting times in a person’s life. It is also, most likely, going to be the biggest purchase you will ever make. For homebuyers in Utah and across the country, your down payment is vital for not only getting a loan but ensuring you receive a low interest rate and monthly payments that are affordable.
At Home Savings Fund, we know that everyone can’t afford to pay 20% down, something that most banks favor; doing so will also get you out of having to pay for private mortgage insurance. So, to help, here are some of the different down payment assistance options you can get in Utah, along with how they work.
How Down Payment Assistance in Utah Works
Most down payment assistance is available through city government programs at the county or state level.
- Low-interest loans are loans that have to be repaid, normally over a few years. This type of loan covers the down payment and closing costs (which normally are needed upfront).
- Housing assistance grants can provide the down payment or they can be used for closing costs as well. Unlike a low-interest loan, they are basically a donation and do not have to be paid back.
- Forgivable loans are loans that will be forgiven after a specific time has passed, so long as the conditions are met – i.e. if you still live in the home and have kept up with your payments.
- Deferred-payment loans normally do not carry interest, but they to need to be reimbursed at a certain point. For example, if you sell that home, you will need to pay back the loan amount. These loans can often have zero-interest, so only the initial loan amount would need to be paid back.
Can I Get Down Payment Assistance?
The good news if you are a first-time homebuyer is that the majority of down payment assistance is allocated to you. If you are not a first-time buyer or own a home, there are other potential programs available. But normally, down payment assistance is only for people who have not owned a home for at least three years.
Let Home Savings Fund Help with Your Down Payment Assistance
Our down payment assistance and first-time homebuyer grants in Utah can get you the home of your dreams. To learn more and reserve your funds today, please contact our team!