The Utah Housing Corporation recently announced that the agency will offer $35 million in mortgage funds at a low 6.09 percent interest rate to assist qualifying low- to moderate-income families purchase homes.
In addition to the below-market 30-year fixed rate mortgage monies, UHC will provide financing for all down payment and closing costs needed to purchase homes.
The corporation estimated that 225 lower-income families at locations across Utah will be able to purchase homes with the assistance offered by the program.
The low interest rate under the UHC home buying program is expected to save the typical lower income household in Utah as much as $17,000 in payments during the life of the loan, pointed out the agency.
Providing the money for the down payment and closing costs, that run about $8,500 on a typical modest home, allows families to overcome the biggest obstacle in buying a home - the inability to put away enough savings to pay closing costs, according to UHC.
"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."
Because of UHC's programs, among others, Erickson indicated that nearly 73 percent of Utah households own homes, as compared to the national average of only 68.4 percent.
The percentage makes Utah's homeownership one of the highest of any state in the nation, noted the state agency.
"Homeownership provides stability for families and for the community. It also provides the greatest opportunity for lower-income households to build equity and provide economic security for their future," said Erickson.
UHC has provided home buying assistance for more than 50,000 lower income families residing in all areas of the state.
The agency is the largest provider of affordable housing assistance in Utah.
Utah Housing loans are obtainable from many lenders throughout Utah.
There are certain limitations on the household's income as well as the cost of a home that can be financed under the program, explained the corporation official.
Certain locations in the state are designated by the federal government as targeted areas.
To promote home ownership in the targeted areas, eligible residents are extended some additional advantages.
Since founded by the Utah Legislature in 1975 as an independent self-supporting public corporation, Utah Housing has provided financing for more than 77,000 single- and multi-family affordable housing units.
For information about the oganization, Carbon County residents may call the agecy toll-free 1-800-301-6950 for a free brochure. Residents with Internet access may also visit UHC's website at www.utahhousingcorp.org.