Wednesday, March 15, 2023
If the governor signs this bill, Utahns will be able to receive $20,000 to help buy their first home
Urban Living
Posted By Babs De Lay on March 15, 2023, 4:00 AM
Big applause to the president of the Utah Senate—Layton Republican Stuart Adams—and the majority of Utah legislators who devised, revised and approved Senate Bill 240, which now awaits the governor's signature to make it into law.
Why would you care about this? Because if you're a first-time homebuyer, this is great news for you!
Known as the First-Time Homebuyer Assistance Program, this bill provides up to $20,000 for Utahns to use as a down payment, for closing costs, or to buy down their interest rate when they purchase a qualifying residential unit in Utah.
Since there are myriad types of home loans out there, a buyer can put zero down to finance a home, or more. And closing costs to get a mortgage can be around 2% or 3%. Redfin.com reports the median sales price of a home in Utah is $520,000, so 3% of that would be $15,600, which could be fully covered by this new bill.
If the recipient sells the home, the $20,000 loan has to be repaid and the bill's language states that the amount to be repaid shall be the lesser of a. the amount you received or b. 50% of the home's equity.
Don't run out to your nearest mortgage broker just yet. The bill, upon signing, would take effect July 1, 2023. A wise buyer would start looking for a home or condo in, say, May and go under contract in June with a close of escrow around the first week of July. That's a great metaphor for freedom from rent if you close around the Fourth of July and own your own home.
These funds will be doled out and controlled by the Utah Housing Corporation, which was created by our Legislature in 1975. So far, it's helped more than 106,400 homebuyers get a mortgage in our state.
They don't just grant first mortgages but also offer grants for members of the military and veterans who are first-time Utah homebuyers. Eligible vets could receive up to $2,500 in cash when they purchase a home.
There are also grants appropriated from the Olene Walker Housing Loan for Utah law enforcement and correctional officers to help with an interest-free, forgivable down payment and closing cost assistance grants.
Go to a Utah Housing Corp.-approved lender to qualify for loans and grants. Your purchase can be anywhere in Utah and can be a single-family home, condo or manufactured home. You must first qualify for an FHA, VA or conventional mortgage through a lender, and that lender will know what monies you qualify for in a grant and/or loan.
For participating lenders and more information, go to utahhousingcorp.org or call Julie Brizzee, the mortgage broker I recommend to folks for more free information (her ad is at the bottom right-hand side of p. 39).
And thanks to Senator Adams (a homebuilder, himself) for getting this bill passed!
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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