Friday, March 13, 2009
At Governor Jon Huntsman’s encouragement our state legislature has passed a state sponsored housing stimulus program on Thursday March 12, 2009. This down payment assistance program, administered by the Utah Housing Corporation (UHC), will be available to qualified buyers of newly constructed homes. A total of $10 million has been appropriated by the state legislature. This appropriation will provide $6,000 grants for 1,666 Utah homebuyers.
Homebuyers must act quickly. Home Run funds are only available for a limited time. Funds for the program are limited to the $10 million appropriation and are available on a first-come first-serve basis. Once the money runs out it is gone.
To apply for a grant, an application must be submitted by the homebuyer’s lender ( I can help you with this process). A grant can only be locked in when the loan is fully underwritten. The funds are wired in by UHC at time of closing and can be used to pay closing costs, buy-down rates, or as the down payment towards the purchase of any newly constructed home.
These funds are not limited to first time homebuyers. Unlike the federal tax credit, the Home Run grants can be used by move-up buyers. As long as the buyer meets income requirements of $75k for an individual and $150k for couples filing jointly a Home Run grant can be used on the purchase of any newly constructed home.
Key Program Facts
• The $6,000 Home Run grants can be used with the $8,000 federal tax credit
• Funds are immediately available at closing
• Home Run grants are only available for newly constructed homes
• Must be occupied as principal residence within 30 days after closing
• Co-signer can sign on loan but not on Title
• Income limits are the same as the Federal First Time Homebuyer Tax Credit
• Deal must be fully underwritten in order to apply for grant
• Mortgage lender must request the funds for the buyer by submitting the following:
o Certificate of Occupancy
o “Clear to Close” Form
o Grant Request Certification
• Conventional, FHA, UHC, USDA, VA and other loan types are eligible as long as it is a 30-year fixed rate loan
• $6,000 grant may need to be claimed as taxable income (a definitive ruling from IRS is pending)
If you are in the market for a newly constructed home purchase I would love the opportunity to help you take advantage of this new program.
Adam Harward - Realtor
Harward & Associates Real Estate
Posted by Adam Harward at 2:10 PM