The Utah Housing Finance Agency is releasing $25 million in mortgage funds that will make home ownership a reality for another 300 low-income Utah families, according to William H. Erickson, executive director.
He said the 6.1 percent fixed-interest rate mortgage money is available to Utah's lower income, first-time homebuyers paying two percentage points discount.Because coming up with a down payment and closing costs are big obstacles for many first-time homebuyers, UHFA will offer a 6.4 percent mortgage loan with no discount points being charged.
"Many of these families will find home ownership less expensive than renting an apartment," Erickson said.
Prospective buyers may qualify for this mortgage money provided their income and the cost of the home they want to purchase is below certain limits. Limits vary between counties, Erickson said.
Many people are paying as much as $900 per months for rent. A family earning $28,500 can purchase an $87,000 home and have a mortgage payment of $650 per month under the UHFA 6.4 percent mortgage rate. That payment includes insurance, taxes, principal and interest.
Erickson said the program he is announcing also offers down-payment and closing-cost assistance for very low-income homebuyers. About 10 percent of the $25 million being released is set aside for that purpose.
Application assistance can be obtained by calling 359-5200 or 1-800-301-6950.