If you are a first time home buyer and are concerned that you will not be able to afford a home, the Utah Loan to Own Program would be a great thing for you to consider. The Utah Loan to Own Program is a federally funded loan program to assist low-income, eligible individuals in the purchase of single family homes in certain cities within Utah County. This is offered to first time home buyers, or those who have not owned a home in three years.

If you are interested in the Utah Loan to Own Program there are some things you may want to know before submitting an application:

Housing Services along with Utah Valley Consortium of Cities and County (UVCCC), who is our funding source, require that:

• We can only take a second lien position
• We only be in second lien position behind FHA or Conventional fixed rate loans. We can do 2/1 buy downs (but have to run ratios at the third year rate) and we can pay for loan discount points.
• There can be no co-signers involved.
• The purchase price of the home cannot exceed $232,305
• The client is buying in an eligible City in Utah County which are; Orem, Lehi, Lindon, Payson, Pleasant Grove, Spanish Fork, Springville, and Unincorporated Utah County (Rural farmland, not in an incorporated City)
• They are under income limits which are;

• The client's debt to income ratios meet HSUV guidelines (which is in the application packet)
• The client is buying a single family home (condos and townhomes are eligible)
• The client completes the HSUV Application and check list

Age of Home

•  If the home is NEWER than 30 years the client is eligible for $5,000 toward 2 the required down payment and the one time closing costs (does not include pre-paid items or reserves).
• If the home is OLDER than 30 years the client is eligible for $15,000 which will pay for the one time closing costs (does not include pre-paid items of reserves) and the balance will go toward down payment. We will ask for a Good Faith Estimate showing the distribution for the $15,000 before we can take the file to loan committee.

Terms of the Loan

• No interest
• No payments
• Second Trust Deed
• The loan will be due and payable to Utah Valley Consortium, in full when the client no longer occupies the property as their principal place of residence at any time during the first five years of the loan. On the anniversary date of the sixth year, 20% for the principal loan amount will be forgiven, and an additional 20% every year thereafter, until the loan is completely forgiven on the 10th anniversary date. There will be no credit issued for partial years.

Fees for the Program

• Borrowers pay a $25.00 fee to HSUV at the time of Application
• $150.00 of the total loan of $5,000 or $15,000 will be used for a limited title insurance policy and recording fees that should be charged to the borrower at the time of closing.

Time Frame

• The time frame for the loan to be processed, approved, and funded is about 2 to 3 weeks.
• Housing Services attends Loan Committee every Friday.
• Order checks every Monday and has a check by the same Thursday.

The funds are used on a first come first serve basis and there are limited funds available, HSUV will post on their website when we can fund only 10-15 more loans.

There are certain items needed from your Mortgage Officer or Real Estate Agetn that make it possible for the borrower's application to be processed in a timely manner. These items listed below, are the items needed before hand:

• A copy of the Good Faith Estimate
• A cop of the credit report
• Also, the first 3 pages of the appraisal are needed before the date of closing.

The Utah Loan to Own Program is a great opportunity for those of you who do not feel as though you could purchase a home at this point in time. If you are interested in the Utah Loan to Own Program and find yourself eligible, please contact The Steven Bond Team, RE/MAX Results at 801-400-6580

Some information quoted from the Program Director of Housing Services of Utah Valley, Inc.