Utah Mortgage Overview
Utah is a gorgeous place to live and offers
many benefits. With just over 3 million people living there, and the median
home price of $273,000 it's easy to see why people live in Utah.
If you're thinking about buying a home in this
beautiful state, here are your loan options:
Utah conventional loans
Utah conventional loans
are a great way to buy a home. You need just a 660 credit score and 3 percent
down payment if you're a first-time buyer and 5 percent if you owned a house before.
If you put less than 20 percent down, you'll need PMI, but you can cancel it
once you owe less than 80 percent of the home's value. Conventional loans have
flexible debt ratio requirements up to 40 percent.
Utah FHA loans
FHA loans are flexible and easy
to qualify for, with just a 580 credit score. Borrowers need 3.5 percent down.
If you have a 500 - 579 credit score, you'll need a 10 percent down payment,
but only 3.5 percent has to come from your funds. Down payment assistance may
help with the rest.
Utah VA loans
Veterans of the military
sacrificed their time and lives and the VA rewards them with 100 percent
financing. As long as you served 181 days during peacetime or 90 days during
wartime, you may qualify. You can have a debt-to-income ratio as high as 50
percent. VA loans don't have mortgage insurance but you will pay an upfront
funding fee in most cases.
Utah USDA loans
If you don't qualify for the
above loans, the USDA loan may be an option. You must live in a rural area, but
the USDA has loose guidelines regarding what's rural. You'll need a 640 credit
score and prove that you can afford all your debts including the consumer debts
you currently carry. Only first-time homebuyers or those who haven't owned a
home in 3 years are eligible.
Programs in Utah
Utah Housing Corp Home Loan
with a 620+ credit score and qualifying income up to $8,900 a month may qualify
for a low-interest fixed rate loan. This is the first step to buying your first
home in Utah and is required if you need down payment assistance.
Down payment assistance
Many lenders throughout
Utah offer the down payment assistance program which may provide up to 100 percent
of the funds needed for the down payment and closing costs.
The Utah SCORE loan is for borrowers
with credit issues but who can prove they can afford the loan. You need a 620
credit score and may be eligible for down payment assistance. You need to meet
guidelines like any other state-funded program, but it's a great way to buy
your first home if you have credit issues.