Housing corporation releases $35 million to help lower income families buy homes
Utah Housing Corporation recently announced that the agency is offering $35 million in mortgage funds at a 6.04 percent interest rate to assist low- to moderate-income families purchase homes.
In addition to the 30-year fixed rate mortgage monies, the housing corporation can also provide eligible families the financing for all of the down payment and closing cost monies necessary to purchase residences, according to the agency.
The housing corporation anticipates that 200 lower-income families residing at locations across Utah will be able to purchase homes with the financial assistance offered under the 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 during the life of the loan.
Providing the funding for down-payment and closing costs, which run in the neighborhood of $7,800 on a typical modest dwellings, allows eligible lower and middle income families to overcome the biggest obstacle in buying home - an inability to save the money to cover the related expenditures, indicated the housing corporation.
"Helping families in their pursuit of home ownership is the central objective of the Utah Housing Corporation," explained William Erickson, president of the state agency.
"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," continued the corporation president
Due to UHC's programs, among others, Erickson pointed out that nearly 73 percent of Utah households own homes, compared to the national average of 68.4 percent.
The 73 percent level makes Utah's homeownership rate one of the highest of any state in the nation.