First-time Homebuyer Mortgage Programs

For First-time Homebuyers in Utah, it doesn’t get better than Altius Mortgage

Home ownership can be a big step in your life, but the rewards are definitely worth the risk. History has proven that there is no better long term place to invest your hard earned money, than in your own home.

Home ownership also comes with great tax benefits. Of course, there are other benefits such as making your own decisions on the details of your home. While renting, you are at the mercy of the landlord or owner to decide what color your living room will be. Any investment that you make past the monthly payment, will generally pay off in the end.

If you think homeownership is beyond your reach, think again. There’s a long list of government agencies, organizations, and financial institutions that are willing to open doors for potential homebuyers. Allow us to help you understand how the program is structured.

What is a First-time Homebuyer Loan?

A first-time homebuyer loan is designed for people whose financial situation and credit profiles do not meet the average criteria. Features and requirements may vary depending on where you live or what programs are on offer in your area. But the borrower-friendly loan generally has benefits which you can’t find in other loan options.

Financial assistance can come in many forms, some of which are easier approval, low to no down payment, subsidized interest rates, help with closing fees, grants, deferred payments, and mortgage debt forgiveness. To receive these benefits, you may be required by some organizations to take homeownership education, a short course designed to help borrowers understand the benefits and responsibilities of homeownership.

Who Can Be Eligible for this Loan Program?

As the name implies, this type of loan program is primarily for first-time home buyers. In some cases, people who haven’t owned before but haven’t done so for several years may also be eligible.

The first-time buyer status also applies to those who fit under any or all of these conditions:

  • Married couples may qualify as first-time buyers if one of them has not owned a primary residence for at least three years
  • A person who owned a house that was not in compliance with local building standards and whose condition cannot be improved to adhere to the code for less than the cost of building a new home
  • Single parents and displaced homemakers whose previous ownership was with a spouse
  • An individual who previous home was not attached to a permanent foundation, such as a mobile home

What are the Loan Restrictions?

A few restrictions go with a first-time home buyer loan, and some of which are the following:

  • Price – You can’t use it to buy expensive homes in your area. Earning too much or having substantial assets may also affect your chances of qualifying for the loan. Again, the idea is to help people who are in need.
  • Occupancy – You will be required to live in the home as your primary residence. Bear in mind that the loan is not for investors or those planning to rent out the home.
  • Health and Safety – The home you buy must be in good condition. You can’t use the loan to rehabilitate a home that is in bad shape.

What Are My Options?

With this program, you may be limited to a short list of loan types, but chances are high that you’ll land a great mortgage and achieve your dream of homeownership. The best loan options are those backed by government agencies, including the Federal Housing Authority (FHA), the U.S. Department of Agriculture (USDA), the Department of Veteran Affairs (VA), Freddie Mac and Fannie Mae mortgage plans, and grants for first-time buyers, as well as loans backed by the state government.

Before getting into a specific program, it’s important to know which loan programs are available in your area. The key is to broaden your search and explore websites of institutions that offer the program. To improve your chances of qualifying for the ideal loan, hiring a trusted mortgage broker in Utah is a wise move.

There are a few questions to consider when making plans for your first-time homebuyers experience. Such as:

How much can I qualify for? Remember there are other factors existing in home ownership such as: 

  • Upkeep cost – the general rule of thumb is a homeowner should expect to invest 2% of the value of the home into upkeep and renovations each year. Keep this in mind as you might qualify for an amount, but minus the 2% so that you can comfortably know that you can keep the property in pristine condition.
  • Is there a HOA (Home Owners Association) fee?
  • Also remember taxes and insurance 

How long will the home I consider need to meet the requirements of my family?

  • Will a one bedroom really be sufficient if I should get married in the next few years, or start a family?
  • Is there room to grow by adding onto the existing property?
  • Can I stay in the property long enough to make the investment valuable?

How is my financial health? Consider checking your credit report and clearing up any errant situations. What are my monthly expenses – do I need to make some adjustments so that I can reap the investment in a home, rather than throwing my money away on less important items.

These are only a few questions to consider as first time home buyers. At Altius Mortgage, we can help you navigate through the many questions and concerns for we know the value of a good home mortgage for anyone, particularly a first time home buyer. Utah real estate has changed over the last few years and you need a professional who is aware of the current real estate climate and mortgage industry. Altius Mortgage’s agents are not only knowledgeable, but also very friendly and will make your experience a pleasant one from beginning to end.

For Utah First Time Home Buyers, Altius is your answer. Contact us at 801-701-8887 or by CLICKING HERE. Also for your convenience, you can use our ‘Chat Option’ in the lower right hand corner.

Discuss Your Questions with a Loan Officer!

(801) 997-5444