House keys and approved mortgage form

First-Time Homebuyer Financing Options in Utah

Are you looking for ways to finance a new home? From FHA loans to VA loans to Fannie Mae/Freddie Mac, there are plenty of options to discover for first-time homebuyers. If you dig deeper, you can even find a realtor in Taylorsville that can help you with your financing.

But if you prefer another option, Utah got you covered.

Aside from the programs the federal government offers, there are also several state housing programs that you can apply for in Utah. What’s great about it is that you can borrow money as much as $75,000 with below market interest rates.
Interested? Here are four of them.

FirstHome

FirstHome mortgages are best for homebuyers with decent credit score and limited income and who can’t afford the usual down payment. It got the lowest interest rates among the existing Utah Housing Corporation (UHC) programs.

Aside from the low rates, you can also apply for a second loan to cover the down payment, closing costs, or both. FirstHome borrowers can loan up to 6% of the primary mortgage amount.

Eligibility: You should have a credit score of at least 660 on the FICO® scale. You should also consider some income and purchase price limits dependent on home location.

HomeAgain

If you don’t qualify for the FirstHome program, then HomeAgain is for you. This financing option comes with slightly higher interest rates than FirstHome. It also has stricter income limits to qualify for a loan. But down payment assistance is exactly the same.

You can also apply for a second mortgage in HomeAgain, just like in the previous option. You can loan up to 6% of the primary mortgage amount. However, it is two percentage points higher than the primary mortgage.

Eligibility: Like in FirstHome, you should also have a credit score of at least 660 to qualify for HomeAgain. Aside from that, you need to have an income of $96,600 or less.

UHC NoMI Loan

Can’t afford the upfront costs of homeownership? UHC NoMI Loan got you covered. You only need a down payment of 3% in this program, and there’s no need to pay for costly private mortgage insurance.

It may not have as low-interest rates or as high down payment as the FirstHome or HomeAgain, but it allows borrowers up to 5% down payment and closing cost assistance.

Eligibility: You must have a credit score of at least 700. Your income must also be $96,600 or less, and you must complete a homebuyer education course to avail the loan.

You can take education classes from the Department of Housing and Urban Development, Freddie Mac, or Finally Home. Some of these classes are free, and others cost around $35.

Utah Housing Score Loan

Couple reading mortgage with agent

This program is best for low- to moderate-income borrowers who can’t afford the usual down payment. It requires low income and price limits, making it ideal for first-time homebuyers on a budget.

Eligibility: You should have a credit score of at least 620 and must earn less than $78,500. Like in NoMi Loans, you must also complete a homebuyer education course.

If you’re looking for financing options in Utah, this state-mandated programs should help you buy your first home. Take it from here and dig deeper what’s the right option for you.