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A new bill for first time homebuyers is helping Utahns finally get a home

A new bill for first time homebuyers is helping Utahns finally get a home

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Many would-be homeowners can relate to the following scenario. You've been scouring the listings for months. You've been scrimping and saving, hoping that something affordable will pop up. Then one day, you finally find something in a decent price range and your heart leaps for joy! But you crunch the numbers and realize you can't make it work after all. You don't have enough money for a down payment. It's frustrating, to say the least.

If this describes your situation, you're certainly not alone. According to The Mortgage Reports, 39% of potential home buyers can't afford the typical down payment of 5%.

To address this issue, the Utah legislature recently approved a new bill for a First-Time Homebuyer Assistance Program which is aimed at helping first-time buyers get out of apartments and into homes. The bill will use $50 million in state funding to offer a loan of up to $20,000 to eligible buyers looking to purchase new construction homes.

This is great news for anyone who has been previously priced out of the housing market due to higher interest rates and home prices. It's something Justin Udy from Justin Udy & Team Real Estate calls "a great opportunity to start building wealth and be able to get into a home."

"There is no reason renters should pay off their landlord's mortgage. Buying a home is a forced savings plan that allows homeowners to start building wealth," Udy says.

"First time homebuyer programs are an amazing opportunity for first time buyers. It brings more buyers back to the market, bridges the gap for those that were unable to get into a home without these opportunities, and gives builders confidence to produce quality housing when they know more buyers are eligible and qualify."

Starting on July 1, the loan can be used as down payment assistance, closing costs, or towards buying down the interest rate. The purpose of the new program is to encourage Utah builders to construct affordable housing while assisting families and individuals across the state in purchasing their first home.

Who qualifies for this program?

The proposed funding is enough to help 2,500 first-time buyers purchase homes in Utah. However, in order to qualify for the loan, the single-family home, condo, or townhome must be located in Utah, priced under $450,000, and be new construction or newly constructed but not yet inhabited. The home must also be occupied by the owner upon purchase.

It's important to note that the loan acts as a lien on the house. That means that if you decide to refinance or sell the home, you'll need to repay the loan money to the state.

A new bill for first time homebuyers is helping Utahns finally get a home
Photo: gpointstudio/Shutterstock.com

How this bill is already helping first-time homeowners

For many, the dream of owning a home remains just out of reach because they don't have the funds for a down payment. But, with this exciting opportunity, that could all change. Imagine being able to check off the box for down payment and closing costs, all while securing a lower payment on a regular loan. No more struggling with the higher payments associated with Utah Housing or DPA Program loans. This could be your ticket to finally stepping into your very own home!

Some first-time home buyers are already reaping the rewards of this program. Anthony VanDyke, president of Houzd Mortgage, describes how this new bill is helping a family that's currently working with his team.

"This family was originally set on purchasing an existing home using Utah Housing (a 100% financing Down Payment Assistance Program)," VanDyke says. "But after discovering the potential benefits of the new bill, they decided to switch to a new construction home in a different area so they can get the $20,000 loan."

This simple switch is going to save them a lot of money.

"By avoiding a higher priced Utah Housing loan with a second mortgage payment, they will be saving about $600 per month," VanDyke adds. "It's exciting to see firsthand how this new bill is making a positive impact on families and their financial futures."

Find out today if you qualify

If you're a first-time home buyer looking to take advantage of this new assistance program, reach out to the professionals at Houzd Mortgage today. They'll review your situation and make sure you meet the requirements and eligibility criteria to qualify for the $20,000 loan.

With more than 15 years of experience in the mortgage industry and hundreds of five-star Google reviews, you can trust Houzd to help you fulfill that dream of owning a home. Visit houzd.com or call 801-206-4343 to get started!

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