by David Ellis
on Monday, March 16th, 2009 at 12:02pm.
Just announced last week, the Utah Senate has approved a bill offering down payment assistance to home buyers in the amount of $6,000. The grants are only available on purchases of new construction homes, and the funds ultimately come from the economic stimulus package.
A few plan details:
the $6,000 does not need to be repaid
the home must be owner-occupied
no first-time homebuyer requirements
$6000 can be applied towards down payment, closing costs, rate buydown or principle reduction
the State has a total of $10 million available for this program...or approximately 1600 loans
income limit is $75,000 for individual or $150,000 if filing jointly
With greater lending restrictions and more stringent down payment requirement, this grant money should help many buyers get into homes that they otherwise couldn't afford. For first-time homebuyers who qualify for $8,000 in federal aid and $6,000 from the State of Utah...that's a pretty sweet deal. Add into the mix historically low interest rates and affordable home prices, and I expect this will help our market.