Posts Tagged Wasatch Front
Home sales in Utah were up in April, May and June of this year, partially because of the first time home buyer tax credit, but that expired in April and doesn’t explain May and June. What did keep sales high looks to be foreclosures. In fact, 18.6% of all homes sold in Utah from April through June were in some state of foreclosure.
A lot of buyers may not have been looking for foreclosures, but the average foreclosure is selling for 26% less than another home for sale that is not a foreclosure. This make them hard to overlook.
HUD, VA and Fannie Mae all have programs to purchase foreclosed properties with little or no down payment and lenient credit standards. Plus, buying a home at 20% t0 30% less gives you instant equity in a time that values are down.
Check-out the links in the Resources section of the sidebar for more information on these programs or give me a call.
On Thursday Congress restored funding to the USDA Rural Housing program which has been on pause since May. This is great news for Utahans since much of Utah sans the Wasatch Front (Salt Lake County, Utah County, Weber County and Davis County) is considered “rural” and homes in rural areas are eligible for 100% financing. Areas such as Eagle Mountain and Stansbury Park are in these rural areas.
So if you are thinking of buying a home and are short on down payment funds, think USDA Rural Housing and have your Realtor show you homes in qualifying areas.
Related articles by Zemanta
- Popular ‘Zero Down’ Mortgage Program Makes Comeback (blogs.wsj.com)
- Thousands of Rural Home Buyers Aided by Passage of Housing Funding Measure (rismedia.com)
Now here is an idea I wish they’d adopt here in Salt Lake City. The Missouri Housing Development Commission is helping first-time home buyers by advancing, in cash at closing, $6,750 of the $7,500 federal tax credit for first-time home buyers to use as their down payment. With FHA this is enough to purchase a $225,000 home.
I was pondering this out loud to whoever would listen to my crazed mumblings last year when the tax credit was first announced: “How is giving someone $7,500 back in April of this year (or April of 2010 if the home is purchased this year) going to help someone with no down payment get a house today? They still don’t have a down payment today.”
Well the folks in Missouri got it right. This is granted as an interest-free loan that the home purchaser repays when they get their tax return, or they can repay it over 10 years with interest.
How has it worked? This month 30 buyers have reserved their share of this money and the commission has enough set aside for 590 buyers.
This helps to spur the economy (at least locally) because it puts back to work all those associated in any respect with the housing industry, right down to the Home Depot employee.
For Salt Lake City, UT today’s average mortgage rates are as follows:
30-year fixed: 5.125%
15-year fixed: 4.75%
Conforming Jumbo 30-year fixed: 5.750%
FHA 30-year fixed: 5.00%