Utah Housing Corporation releases funds for lower income families purchase homes
Utah Housing Corporation (UHC) announced that it is offering $30 million of mortgage funds at a low 5.56 percent interest rate (one-half percent below market rate) to assist low- to moderate-income families purchase a home.
In addition to the 30-year fixed rate mortgage monies, UHC can also provide to these families financing for all of the down payment and closing cost monies needed to buy their home.
It is expected that 200 lower income families in both the Castle Valley and across Utah will be able to purchase a home with the assistance offered under this program.
The low interest rate under the UHC home-buying program is expected to save the typical Utah lower-income household as much as $15,000 in payments over the life of the loan.
Providing the monies for the down-payment and closing costs, that run about $7,800 on a typical modest home, allows these families to overcome the biggest obstacle in buying a home - their inability to put away enough savings to pay closing costs.
"Helping families in their pursuit of homeownership is the central objective of the Utah Housing Corporation," explained William Erickson, president of UHC. "Whenever we are able to move a family from an apartment into a home, it frees up that affordable apartment unit for the next family. With the shortage of affordable housing in Utah, this process is crucial to make more housing available."
Erickson pointed out that it is because of UHC's programs, among others, that nearly 73 percent of Utah households own their own home (as compared to the national average of only 68.4 percent).
This makes Utah's homeownership rate one of the highest of any state in the nation.