Many different home-grant programs are available to Utah homebuyers today.
These programs are designed to help make the dream of home ownership a reality for individuals and families who might otherwise not be able to afford a house. Grants are available from a variety of sources, including cities and counties as well as the federal governments.
In Orem, Veritas Funding is proud to help our clients throughout northern Utah become homeowners using home-grant programs.
What Is a Home Grant?
The nature of any grant is that it be used for a specified purpose without the expectation of repayment.
A true grant is given to a qualified homebuyer, typically to help with down payment and closing costs required to finalize the purchase. Utah has a variety of programs dedicated to this purpose.
Many of these programs are not technically gifted, however, despite their names. Instead they are no-interest, no-payment forgivable loans. As long as you live in your house, you are not obligated to repay the loan. If you sell your house or turn it into a rental, however, the loan becomes fully due and payable.
Available Utah Home-Grant Programs
In Utah County, the Loan to Own program offers first-time homebuyers between $5,000 and $10,000. Provo sponsors a federally funded block grant program that offers first-time homebuyers in that city up to $10,000.
The Utah Fair Credit Association offers a program called IDA (Individual Development Account). This program helps potential homebuyers to save up for a down payment. For every dollar you deposit in your IDA (up to $1,500), they will grant you $3. At the end of a year, you have $6,000 to buy your house.
Other groups offering similar programs in Utah include the Community Development Corporation of Utah, the Federal Home Loan Bank’s HomeStart program, Utah Housing and the USDA.
Requirements for Home Grants in Orem, Utah
Every program has its own set of requirements. However, most programs require that you meet maximum income requirements to ensure that the funds go to those who need them most. Most — but certainly not all — of these programs are intended for first-time buyers.
Most of these programs have maximum home value limits. Also, most require that you have a minimum credit score and an acceptable debt-to-income ratio. However, if you can qualify for a mortgage, the chances are good that you will also qualify for a home grant.
Grant programs offered by cities and counties are funded at the beginning of each year. Once the funding runs out, no more grants are available until the next year. Consequently, program availability is subject to change.
Because Utah has so many options for grants, the chances are good that the mortgage professionals of Veritas Funding can match a program to your needs. Contact us today to learn more about home grants and other buyer assistance programs.