Fund aids low-income homebuyers

Utah Housing Corp. is offering $35 million in mortgage funds at a l6.09 percent interest rate to help low- to moderate-income families purchase a home.

In addition to the below-market, 30-year fixed-rate mortgage, UHC will also provide financing for all of the down payment and closing costs needed to buy the home. It is expected that 225 lower-income families across Utah will be able to purchase a home with the assistance offered by this program.

The low interest rate under the UHC home-buying program is expected to save the typical lower-income household in Utah as much as $17,000 in payments over the life of the loan. Providing the money for the down payment and closing costs, which run about $8,500 on a typical modest home, allows these families to overcome the biggest obstacle in buying a home — their inability to put away enough savings to pay closing costs.

"Whenever we are able to move a family from an apartment into a home, it frees up that affordable apartment unit for the next family. With the shortage of affordable housing in Utah, this process is crucial to make more housing available," William Erickson, president of UHC, said.

For information about Utah Housing, call 801-902-8200 or toll-free 1-800-301-6950 for a brochure, or visit UHC's Web site at: www.utahhousingcorp.org.