Duke Team of Remarkable Home Loans

     For many people, the biggest obstacle to buying a home is coming up with the down payment. However, there are a variety of down payment assistance programs available that can help make homeownership more accessible. Here are some examples of down payment assistance programs that may be available in your area.

     The Utah Housing loan program is a popular option for first-time homebuyers in Utah. This program offers low-interest loans to help with down payment and closing costs, and can be combined with other programs like the Federal Housing Administration (FHA) loan program for even more flexibility. To qualify for a Utah Housing loan, borrowers must meet certain income and credit score requirements, and the property must be located in Utah.

     Another option for down payment assistance is the Chenoa Fund. This program offers a variety of loan options, including FHA loans and conventional loans, and provides down payment assistance in the form of a second mortgage. Depending on your circumstances, the second mortgage may not have to be repaid until the borrower sells the home or refinances the primary mortgage and one type of second mortgage can be eliminated completely by making a certain number of on-time payments of the first mortgage. To qualify for a Chenoa Fund loan, borrowers must meet certain credit and income requirements, and the property must be located in an eligible area.

     For residents of Provo, Utah, the Home Purchase Plus program may be a good option for down payment assistance. A 0% interest, deferred payment loan to assist first-time home buyers in becoming home owners in Provo City.  A first-time home buyer is defined as someone who has had no ownership in a principal residence during the 3-year period ending on the date of the purchase of the property.  This includes a spouse or partner (if either meets the above test, they are considered first-time home buyers.)

More information can be found here: https://www.provo.org/departments/development/cdbg-home/home-purchase-plus-program

     For others living in Utah county, except the cities of Alpine, Eagle Mountain, and Fairfield, there is the "Loan to Own" program.  Information can be found here: https://www.provo.org/departments/development/cdbg-home/loan-to-own-program

• You must be qualified with a bank or other financial institution for the first mortgage.
• The total income of all family members over 18 must be less than the Income Limits (effective June 15, 2022).  Income is calculated based on the last three month's pay stubs using the actual hours worked and projecting for a year.
• Must be on current job a minimum of six months.
• Must not have owned a home in the last three years.
• Must have a mid credit score above 650 with no unsatisfied judgments or collections.
• Must meet debt capacity requirement.
• Both spouses are required to be on our loan (regardless of whether they are on the first) and must meet the credit requirement.
• Liquid assets cannot exceed $15,000 at time of closing.
• All household members over 18 must pass a background check.

What Housing Qualifies?

• Purchase price of the home may not exceed HUD limit which currently is $540,917 (effective September 29, 2022) for both existing and new homes.
• Can be a single-family home, one half of a twin home, a condominium or town home.
• Must not be currently occupied or have been occupied by renters within six months to the date of contract, who would be displaced by the purchase.
  

     When considering down payment assistance programs, it's important to do your research and understand the terms and requirements of each program. Some programs may require borrowers to complete homeownership education courses or counseling, while others may have specific income or credit score requirements. Additionally, some programs may have limited funding, so it's important to apply early if you're interested in a particular program.

     Overall, down payment assistance programs can be a valuable resource for first-time homebuyers or those who may not have the funds available for a traditional down payment. By working with a knowledgeable lender and exploring your options, you may be able to find a down payment assistance program that can help make homeownership a reality.