If you're concerned about how to do a loan modification, here are 7 things you should be aware of.
1. Review your financial situation: Prepare a Financial statement including a detailed list of your expenses (food, gas, credit cards and other financial obligations) in a spreadsheet and calculate the average costs on each item for the past 3 months or so. This is important because most lenders would ask you questions on your financial situation and require you to submit a Financial Statement.
2. Hardship letter: Prepare a Hardship letter of not more than 2 pages wherein you'll put down why you aren't able to carry on with the usual payments and why you need a loan modification. Know how to write a hardship letter.
3. Collect documents: You need to gather certain documents which the lender may review when you request for mortgage loan modification. The documents are:
Pay stubs and bank statements for past 2 months
W-2 Form for last 2 years for the employed
Form 1040 for last 2 years if you're self employed
Rental Agreement if the loan is not on your primary home
Most recent mortgage statement
Property tax statements
4. Contact your lender: Call up the lender and make him aware of your situation. An even better way to communicate is by sending a hardship letter. It is easier to get a home loan modification if you're behind on payments. However, you may get approved even though you're not yet late but are not sure whether you can keep up the payments.
5. Fill out paperwork: Once you qualify for mortgage modification, the lender will send an information packet and a financial worksheet for you to calculate your expenses. You need to attach documents you've collected along with the worksheet. This is for your lender to assess your financial situation and interpret whether you can pay your mortgage after home loan modification.
What you need to prove by filing out the paperwork is that the loan modifications will help improve your situation and make your payments manageable.
6. Written Agreement: Once the lender reviews your paperwork, he may verbally agree to modify your loan. He'll also send you a document explaining the loan modification offer for your approval.
7. Stop gap repayment plan: Once you accept the offer, the lender will need you to start off a stop gap repayment plan till the mortgage modification goes through. This will go on for maximum 60 days during which the lender reviews your loan status, financial statement and documents in order to assess the risks in modifying your loan.
During the stop gap period, you need to prove that you can afford monthly payments along with other expenses after loan modifications. Only then you have a fair chance to get your loan modified.
Home loan modification may be offered alone or as a part of forbearance. However, not all loans are appropriate for mortgage modification. Loans being modified are mostly those which are above the market rates or have lower loan-to-value ratios and mature terms. Mortgagefit.com
Note: If you feel that you need help with the negotiating process, Fortified Financial is a Loan Modification Company (with offices in St. George) that can help people modify their current home loan who cannot refinance. They have been extremely successful in helping families from losing their home from foreclosure.
Visit their website at fortifiedinancial.com
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Wednesday, October 21, 2009
Like it or not more stimulus may be coming
Homebuyer tax credit expansion
An estimated 1.4 million tax filers to date have taken advantage of a temporary first-time homebuyer tax credit aimed primarily at people making less than $75,000 ($150,000 for joint filers). An estimated 15% of them bought their home specifically because of the tax break.
The latest iteration of that credit is worth $8,000, and it's scheduled to expire on Nov. 30.
Many lawmakers want to extend that deadline, expand eligibility beyond first-time homebuyers and include those who make more than is allowed under the current rules.
Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn., co-sponsored an amendment to the unemployment extension bill that would extend the credit until the end of June 2010 and be available to single filers making up to $150,000 and joint filers making up to $300,000.
The amendment may or may not remain attached to the unemployment bill -- which has been stalled due to political skirmishes between Democrats and Republicans. But Congress Daily reports that senators and aides "said both [measures] appear likely to clear the chamber in some form this fall."
It's still not clear where the White House stands. At a Senate Banking hearing on Tuesday, Housing Secretary Shaun Donovan said "within a few weeks we'll have sufficient data to get to a conclusion on this."
Estimated cost: The Isakson-Dodd bill is estimated to cost $16.7 billion. Isakson said at the Senate Banking hearing that he'd be happy to look for ways to pay for it and Dodd concurred. Typically, if a measure is considered stimulus it is not something that lawmakers feel obligated to pay for by either reducing spending or raising revenue in other areas.
CNN Money
An estimated 1.4 million tax filers to date have taken advantage of a temporary first-time homebuyer tax credit aimed primarily at people making less than $75,000 ($150,000 for joint filers). An estimated 15% of them bought their home specifically because of the tax break.
The latest iteration of that credit is worth $8,000, and it's scheduled to expire on Nov. 30.
Many lawmakers want to extend that deadline, expand eligibility beyond first-time homebuyers and include those who make more than is allowed under the current rules.
Sen. Johnny Isakson, R-Ga., and Sen. Chris Dodd, D-Conn., co-sponsored an amendment to the unemployment extension bill that would extend the credit until the end of June 2010 and be available to single filers making up to $150,000 and joint filers making up to $300,000.
The amendment may or may not remain attached to the unemployment bill -- which has been stalled due to political skirmishes between Democrats and Republicans. But Congress Daily reports that senators and aides "said both [measures] appear likely to clear the chamber in some form this fall."
It's still not clear where the White House stands. At a Senate Banking hearing on Tuesday, Housing Secretary Shaun Donovan said "within a few weeks we'll have sufficient data to get to a conclusion on this."
Estimated cost: The Isakson-Dodd bill is estimated to cost $16.7 billion. Isakson said at the Senate Banking hearing that he'd be happy to look for ways to pay for it and Dodd concurred. Typically, if a measure is considered stimulus it is not something that lawmakers feel obligated to pay for by either reducing spending or raising revenue in other areas.
CNN Money
Thursday, October 8, 2009
Home Buyer Tax Credit Initiatives
NAHB sent letters to the House and Senate this week thanking members for introducing legislation that would extend the $8,000 first-time home buyer tax credit, which is due to expire on Dec. 1. House Ways and Means Committee Chairman Charles Rangel (D-N.Y.) recently introduced HR. 3590, the Service Members Home Ownership Tax Act of 2009. The legislation would extend the credit for one year for qualifying service members.
In a letter supporting Rangel’s effort to ensure that the home buyer tax credit is fully available to all of the men and women in service to our country, NAHB Chief Lobbyist Joseph Stanton said “we look forward to working with you to extend the credit, so it can continue to provide a much-needed boost to the economy.”
Meanwhile, Sen. Ben Cardin (D-Md.) introduced S. 1678, a bill to extend the home buyer tax credit for six months. The bipartisan measure has six co-sponsors, including Senate Majority Leader Harry Reid (D-Nev.) and Sens. Saxby Chambliss (R-Ga.), Kirsten Gillibrand (D-N.Y.), Jon Ensign (R-Nev.), Johnny Isakson (R-Ga.) and Debbie Stabenow (D-Mich.).
NAHB on Sept. 22 sent a letter to Sen. Cardin stating that S. 1678 is an “important first step in ensuring that this powerful economic incentive does not lapse as the Nov. 30, 2009 expiration date approaches. However, NAHB believes that the tax credit must be extended for an additional year and made available to all purchasers of a principal residence.” The message on the tax credit conveyed the same points that NAHB is issuing as part of its “Revive Housing, Restore America” campaign, which also seeks congressional action to resolve the credit crunch, correct a faulty appraisal process and expand the tax code’s net operating loss carry back provision for businesses to help prevent further layoffs.
An extension of the tax credit for a full year and an expansion to all purchasers of a principal residence would spur more than 383,000 additional home sales and help mitigate the resurgent foreclosure crisis, the NAHB letter to Cardin said. “Extending and expanding the credit would also create nearly 350,000 desperately-needed jobs during the coming year in many industries, including manufacturing, retail and real estate-related industries.”
There are a number of bills pending in the House and Senate that seek to extend and enhance the home buyer tax credit. NAHB is continuing its advocacy efforts on all fronts to let Congress know that prompt action is needed to help create jobs and move housing and the economy to higher ground. For example, NAHB President and CEO Jerry Howard this week emphasized these same points regarding the tax credit in interviews with CNN/Money, Congressional Quarterly and the L.A. Times.
NAHB Chief Economist David Crowe tied in the need for Congress to act on the home buyer tax credit in an appearance on Fox Business TV to discuss the government’s new-home sales report for August. He stressed the same message while discussing the new-home sales data with ABC Radio, CNN Radio and the Associated Press, and these points were also highlighted in a press release to the media. Also aiding our efforts, the Philadelphia Inquirer this week reported on a study by Campbell Surveys that says the home buyer tax credit has directly resulted in 357,000 home sales between Feb. 17 and Sept. 15. Using transaction information obtained from real estate agents, Campbell Surveys found first-time buyers accounted for 32 percent of home sales before passage of the American Recovery and Reinvestment Act on Feb. 17, and 42 percent to 43 percent in ensuing months. The article noted that the data “adds support to calls for extending the credit past its Nov. 30 deadline,” and quoted NAHB Director of Tax Issues Rob Dietz, who said: "We're looking for one more year, to Nov. 30, 2010, and extending the $8,000 credit to all primary-home buyers."
In a letter supporting Rangel’s effort to ensure that the home buyer tax credit is fully available to all of the men and women in service to our country, NAHB Chief Lobbyist Joseph Stanton said “we look forward to working with you to extend the credit, so it can continue to provide a much-needed boost to the economy.”
Meanwhile, Sen. Ben Cardin (D-Md.) introduced S. 1678, a bill to extend the home buyer tax credit for six months. The bipartisan measure has six co-sponsors, including Senate Majority Leader Harry Reid (D-Nev.) and Sens. Saxby Chambliss (R-Ga.), Kirsten Gillibrand (D-N.Y.), Jon Ensign (R-Nev.), Johnny Isakson (R-Ga.) and Debbie Stabenow (D-Mich.).
NAHB on Sept. 22 sent a letter to Sen. Cardin stating that S. 1678 is an “important first step in ensuring that this powerful economic incentive does not lapse as the Nov. 30, 2009 expiration date approaches. However, NAHB believes that the tax credit must be extended for an additional year and made available to all purchasers of a principal residence.” The message on the tax credit conveyed the same points that NAHB is issuing as part of its “Revive Housing, Restore America” campaign, which also seeks congressional action to resolve the credit crunch, correct a faulty appraisal process and expand the tax code’s net operating loss carry back provision for businesses to help prevent further layoffs.
An extension of the tax credit for a full year and an expansion to all purchasers of a principal residence would spur more than 383,000 additional home sales and help mitigate the resurgent foreclosure crisis, the NAHB letter to Cardin said. “Extending and expanding the credit would also create nearly 350,000 desperately-needed jobs during the coming year in many industries, including manufacturing, retail and real estate-related industries.”
There are a number of bills pending in the House and Senate that seek to extend and enhance the home buyer tax credit. NAHB is continuing its advocacy efforts on all fronts to let Congress know that prompt action is needed to help create jobs and move housing and the economy to higher ground. For example, NAHB President and CEO Jerry Howard this week emphasized these same points regarding the tax credit in interviews with CNN/Money, Congressional Quarterly and the L.A. Times.
NAHB Chief Economist David Crowe tied in the need for Congress to act on the home buyer tax credit in an appearance on Fox Business TV to discuss the government’s new-home sales report for August. He stressed the same message while discussing the new-home sales data with ABC Radio, CNN Radio and the Associated Press, and these points were also highlighted in a press release to the media. Also aiding our efforts, the Philadelphia Inquirer this week reported on a study by Campbell Surveys that says the home buyer tax credit has directly resulted in 357,000 home sales between Feb. 17 and Sept. 15. Using transaction information obtained from real estate agents, Campbell Surveys found first-time buyers accounted for 32 percent of home sales before passage of the American Recovery and Reinvestment Act on Feb. 17, and 42 percent to 43 percent in ensuing months. The article noted that the data “adds support to calls for extending the credit past its Nov. 30 deadline,” and quoted NAHB Director of Tax Issues Rob Dietz, who said: "We're looking for one more year, to Nov. 30, 2010, and extending the $8,000 credit to all primary-home buyers."
Monday, September 28, 2009
Give First Timers the Direction They Need
Nervous. Arrogant. Cautious. Excited.
Although these words seem contradictory, they sun=m p today's first time home buyers.
"First time homebuyers are many things at once," explains Paul Gorney, a sales associate in Chicago. "They're scared to pay too much, excited to get a "good deal", and confused because the number of homes and the situations in which sellers are selling, such as short sales and foreclosures.
"First timers need serious guidance," he says. That guidance is especially critical for buyers who are trying to beat the Nov. 30 closing deadline to qualify for the federal first time home buyer tax credit. Here's how to overcome three false assumptions that can derail first timers.
1.The housing market is weak.
First timers have likely read every stitch of the news about how homes are not selling. The trouble is that simply is not true in many entry level markets.
"First time home buyers need to understand the environment they're competing in," says Dana Graham.
2. I need to see all the options.
Many buyers exceed with excessive caution because of the endless inventory and their desire to find the perfect home. That can lead to paralysis by analysis, says Kathleen Alexander, a sales associate with Keller Williams Realty in Boston. Like Graham, Alexander uses facts to get buyers off the fence. "I make sure they're armed with all the data they could possibly desire-which homes have sold in which areas and for how much- and I explain how to interpret the data," she says. "I want them to have a firm grip on the market. That takes away a lot of the hesitancy."
Graham stresses today's interest low rates. "I tell them the rates are as low as the 1950's type rates. "They have nowhere to go but up. If they go to an entire plausible 7.5 percent which is still low-prices would have to still go down another 20% to make up the difference in their monthly payments."
Don't forget about the first time home buyer tax credit deadline. I tell them the tax credit is truely $8,000 they will get back when they file their taxes,: says Sam Seaboard from Remax in Seattle. "If they normally get a refund they'll get an additional $8,000. It is a gift from the government to get them started as home owners."
3. I've Found a Bargain!
It's true that affordability is at record levels today, but many buyers need help putting price into perspective.
"They think they can get a really nice house for $50,000, but the average home in our market is $200,000. They perceive that there are really great deals, which is true. But a lot of the homes are stripped of all their fixtures.
That can be hard for buyers to accept. Show them they really low priced homes so they can see they don't want to do all that work.
Although these words seem contradictory, they sun=m p today's first time home buyers.
"First time homebuyers are many things at once," explains Paul Gorney, a sales associate in Chicago. "They're scared to pay too much, excited to get a "good deal", and confused because the number of homes and the situations in which sellers are selling, such as short sales and foreclosures.
"First timers need serious guidance," he says. That guidance is especially critical for buyers who are trying to beat the Nov. 30 closing deadline to qualify for the federal first time home buyer tax credit. Here's how to overcome three false assumptions that can derail first timers.
1.The housing market is weak.
First timers have likely read every stitch of the news about how homes are not selling. The trouble is that simply is not true in many entry level markets.
"First time home buyers need to understand the environment they're competing in," says Dana Graham.
2. I need to see all the options.
Many buyers exceed with excessive caution because of the endless inventory and their desire to find the perfect home. That can lead to paralysis by analysis, says Kathleen Alexander, a sales associate with Keller Williams Realty in Boston. Like Graham, Alexander uses facts to get buyers off the fence. "I make sure they're armed with all the data they could possibly desire-which homes have sold in which areas and for how much- and I explain how to interpret the data," she says. "I want them to have a firm grip on the market. That takes away a lot of the hesitancy."
Graham stresses today's interest low rates. "I tell them the rates are as low as the 1950's type rates. "They have nowhere to go but up. If they go to an entire plausible 7.5 percent which is still low-prices would have to still go down another 20% to make up the difference in their monthly payments."
Don't forget about the first time home buyer tax credit deadline. I tell them the tax credit is truely $8,000 they will get back when they file their taxes,: says Sam Seaboard from Remax in Seattle. "If they normally get a refund they'll get an additional $8,000. It is a gift from the government to get them started as home owners."
3. I've Found a Bargain!
It's true that affordability is at record levels today, but many buyers need help putting price into perspective.
"They think they can get a really nice house for $50,000, but the average home in our market is $200,000. They perceive that there are really great deals, which is true. But a lot of the homes are stripped of all their fixtures.
That can be hard for buyers to accept. Show them they really low priced homes so they can see they don't want to do all that work.
Tuesday, September 22, 2009
Rescuing Homeowners
Several new businesses have started up to address the particular problems of the housing mess. Designer Home Tending of Utah is one such company; it finds responsible tenants to live in empty homes. The tenants pay rent to the Designer Home Tending, and has to move in with fine furniture and keep the house clean and well kept. “It really helps a homeowner who has a house sitting vacant and abandoned,” owner and founder Cathy Cardenas says. “A house sells 30 to 60 percent faster, and if you’re the homeowner at least you get your utilities paid.” By moving someone in, the empty home is again furnished, making it easier for buyers to see how they would distribute their furniture through the space. It’s like getting a free management company that watches over the house while the seller is relocated in another state.
Designer Home Tending gets paid through rent from the home tender, while the home tender gets to live in a luxury house at a bargain price—although they have to move whenever “their” house sells. After testing the home tending concept in Boise, Cardenas moved the company to Salt Lake City, but it now operates in 10 major Western cities. ‘When you walk into a vacant home, all it says is “desperate,” Cardenas says. “When you walk into a house that’s tended, you can see yourself living there.”
On the more urgent front of rescuing homeowners from foreclosure, SaveUtahHomes.com works several angles to try to keep delinquent homeowners in their homes instead of on the street. “Homeowners who are behind on house payments are a target for unscrupulous investors and loan sharks that are attacking them from every angle,” owner Ryan Wright says. He started the company in 2002 and won a Best in State Award earlier this year. Wright’s staff works with homeowners by trying to modify the lender’s loan terms, obtaining a new private loan to eliminate the debt that’s piling up from missed payments, sells the home to a private investor who then leases it back to the troubled owner or arranges a short sale which preserves the homeowner’s credit. The service is free. Wright’s income comes from commissions paid by lenders for saving them the expense of foreclosure. The last thing lenders need in this climate is more vacant homes to resell. SaveUtahHomes.com is one of several firms which have risen in recent years to answer the need. –www.utahbusiness.com
Designer Home Tending gets paid through rent from the home tender, while the home tender gets to live in a luxury house at a bargain price—although they have to move whenever “their” house sells. After testing the home tending concept in Boise, Cardenas moved the company to Salt Lake City, but it now operates in 10 major Western cities. ‘When you walk into a vacant home, all it says is “desperate,” Cardenas says. “When you walk into a house that’s tended, you can see yourself living there.”
On the more urgent front of rescuing homeowners from foreclosure, SaveUtahHomes.com works several angles to try to keep delinquent homeowners in their homes instead of on the street. “Homeowners who are behind on house payments are a target for unscrupulous investors and loan sharks that are attacking them from every angle,” owner Ryan Wright says. He started the company in 2002 and won a Best in State Award earlier this year. Wright’s staff works with homeowners by trying to modify the lender’s loan terms, obtaining a new private loan to eliminate the debt that’s piling up from missed payments, sells the home to a private investor who then leases it back to the troubled owner or arranges a short sale which preserves the homeowner’s credit. The service is free. Wright’s income comes from commissions paid by lenders for saving them the expense of foreclosure. The last thing lenders need in this climate is more vacant homes to resell. SaveUtahHomes.com is one of several firms which have risen in recent years to answer the need. –www.utahbusiness.com
Monday, September 14, 2009
Lease With Option To Buy
If you’re ready to buy the home of your dreams, but your credit or savings isn’t quite ready yet, a lease with option to buy (often simply called a “lease option” or, somewhat inaccurately, “rent to own”) may help you move in.
Lease Options can be useful home-buying tools, but they’re not for everybody. In fact, some of lease options do not end with the lessee (the renter or prospective buyer) purchasing the home, and while that’s sometimes for a good reason, ask yourself a few questions before you decide to pursue a lease option in general or before you sign one on a particular house.
Can you afford the option money? An upfront payment may be quite small, or it may be 3-5% of the purchase price. All of this money should go toward the purchase price or down payment on the home if you decide to buy the house at the end of the lease term. Unlike a security deposit, you don’t get the option money back at the end of the lease if you can’t purchase the house or decide not to.
Do you plan to stay in the area? You should be fairly certain that you want to buy the house at the end of the term. If you don’t, you lose your option money that you've paid in your monthly payments.
Will you be able to secure financing at the end of the lease term? A lease option can help you get a more favorable loan than you otherwise would be able to, but it’s no guarantee, so you’ll want to be reasonably sure that you’ll be able to qualify for a loan at the end of the term.
Lenders especially like to see stability over two years, so if you’ve been living in the same house, making payments on it, and working at the same place for that long, you may qualify for better loan rates.
Don’t wait until the last minute to apply for a loan. You should begin your application process no less than 45 days in advance of the end of the lease, and to be safe you should probably start a full two months or more before you need to buy the house.
Can you afford the monthly payments on the lease? Typically (but not always) the monthly payments on a lease will include the fair rental value plus option money that will go toward the purchase of the home. Thus, the monthly payments under a lease option will usually be more than you would pay if you were renting the same house.
Lease Option Tips - There are some companies that specialize in lease options, and in some places government programs will buy a house for you and then offer you a lease option. More typically, however, you can just find a house for sale and see if the owner will consider a lease option. A licensed Realtor can also guide you in this process.
Making improvements on the home during the lease term can help earn you equity (so-called “sweat equity”) in the home because the agreed-upon purchase price stays the same. This increased equity may help you get a more favorable loan if you exercise your option to buy. In essence, by increasing the value of the home you are increasing your down payment.
Lease options are typically better options for sellers than most people think they are, largely, if the lessee does buy the house, the seller has accomplished his or her goal of selling the house and in addition, lease option buyers are often willing to pay market value or even slightly higher due to their unique circumstances, so the seller can be sure to get a fair price for the home. During the length of the lease option the seller is able to collect enough rent to cover the mortgage and not incur additional expenses associated with a standard rental. Usually the property is taken care of better because this person intends on it being their home.
Lease option tenants realize this is a great way to acquire the home they want to own. It may not be their ultimate dream home, but they’re willing to start with something less than perfect, often while they straighten out their personal finances and upgrade their FICO credit score so they can qualify for a home mortgage. -Information obtained from various website sources.
Lease Options can be useful home-buying tools, but they’re not for everybody. In fact, some of lease options do not end with the lessee (the renter or prospective buyer) purchasing the home, and while that’s sometimes for a good reason, ask yourself a few questions before you decide to pursue a lease option in general or before you sign one on a particular house.
Can you afford the option money? An upfront payment may be quite small, or it may be 3-5% of the purchase price. All of this money should go toward the purchase price or down payment on the home if you decide to buy the house at the end of the lease term. Unlike a security deposit, you don’t get the option money back at the end of the lease if you can’t purchase the house or decide not to.
Do you plan to stay in the area? You should be fairly certain that you want to buy the house at the end of the term. If you don’t, you lose your option money that you've paid in your monthly payments.
Will you be able to secure financing at the end of the lease term? A lease option can help you get a more favorable loan than you otherwise would be able to, but it’s no guarantee, so you’ll want to be reasonably sure that you’ll be able to qualify for a loan at the end of the term.
Lenders especially like to see stability over two years, so if you’ve been living in the same house, making payments on it, and working at the same place for that long, you may qualify for better loan rates.
Don’t wait until the last minute to apply for a loan. You should begin your application process no less than 45 days in advance of the end of the lease, and to be safe you should probably start a full two months or more before you need to buy the house.
Can you afford the monthly payments on the lease? Typically (but not always) the monthly payments on a lease will include the fair rental value plus option money that will go toward the purchase of the home. Thus, the monthly payments under a lease option will usually be more than you would pay if you were renting the same house.
Lease Option Tips - There are some companies that specialize in lease options, and in some places government programs will buy a house for you and then offer you a lease option. More typically, however, you can just find a house for sale and see if the owner will consider a lease option. A licensed Realtor can also guide you in this process.
Making improvements on the home during the lease term can help earn you equity (so-called “sweat equity”) in the home because the agreed-upon purchase price stays the same. This increased equity may help you get a more favorable loan if you exercise your option to buy. In essence, by increasing the value of the home you are increasing your down payment.
Lease options are typically better options for sellers than most people think they are, largely, if the lessee does buy the house, the seller has accomplished his or her goal of selling the house and in addition, lease option buyers are often willing to pay market value or even slightly higher due to their unique circumstances, so the seller can be sure to get a fair price for the home. During the length of the lease option the seller is able to collect enough rent to cover the mortgage and not incur additional expenses associated with a standard rental. Usually the property is taken care of better because this person intends on it being their home.
Lease option tenants realize this is a great way to acquire the home they want to own. It may not be their ultimate dream home, but they’re willing to start with something less than perfect, often while they straighten out their personal finances and upgrade their FICO credit score so they can qualify for a home mortgage. -Information obtained from various website sources.
Thursday, September 10, 2009
HOME RUN 2 GRANT
As announced by Gov. Gary R. Herbert, there is a new $4,000 grant (Home Run 2 Grant Program) to assist home buyers. This cash grant, coupled with low interest rates, stable home prices and the $8,000 Federal Tax Credit for first time home buyers will enable many Utahans to achieve the dream of owning a new home. As with the original Home Run program, the Home Run 2 Grant will be administered by Utah Housing Corporation. Grant funds will be wired to the settlement agent closing the home purchase transaction. Funding will be available for approximately 1,950 grants. The approximate number of remaining grants may be viewed at all times on the Utah Housing website at www.utahhousingcorp.org.
How is Home Run 2 different from the first Home Run program? The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
Who is eligible to receive a $4,000 Home Run 2 Grant?
Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program. Home buyers (any person taking title) must meet the following income restrictions:
Single person, maximum income, $75,000
Married couple, maximum income, $150,000
If more than one unmarried person is taking title to the
Eligible Home, each such single person is subject to the
$75,000 income limit.
Home buyers must occupy the purchased home as a primary, permanent residence.
If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
Conventional loans
FHA, VA, or Rural Housing loans
Utah Housing Corporation loans
Cash Buyers should contact Utah Housing directly for assistance in qualifying.
To learn more about the Home Run 2 Grant visit www.utahhousingcorp.org.
How is Home Run 2 different from the first Home Run program? The first Home Run program, which ended in June 2009, provided a $6,000 grant to eligible home buyers. Home Run 2 provides a $4,000 grant. The first program required that homes be ready for occupancy upon closing. Home Run 2 buyers have two additional options. They can purchase a home that is contracted for construction or partially finished and contracted for completion. Homes that have been previously occupied do not qualify.
Who is eligible to receive a $4,000 Home Run 2 Grant?
Home buyers who did not receive a $6,000 grant under the previous $6,000 Home Run Grant Program. Home buyers (any person taking title) must meet the following income restrictions:
Single person, maximum income, $75,000
Married couple, maximum income, $150,000
If more than one unmarried person is taking title to the
Eligible Home, each such single person is subject to the
$75,000 income limit.
Home buyers must occupy the purchased home as a primary, permanent residence.
If home buyers need a mortgage loan to purchase the home, the loan must be a fixed interest rate, amortizing mortgage loan with a term of 30 years or less.
The Home Run 2 Grant Program is effective only for home purchases closed after a Home Run 2 Grant Commitment has been issued for that specific transaction. The grant funds may not be issued for homes purchased prior to obtaining the Home Run 2 Grant Commitment.
What type of loan can a home buyer use to purchase the home?
If a home buyer needs a mortgage loan, it must be a fixed interest rate loan with a term of 30 years or less. Loans may be obtained from any Approved Lender. Examples of qualifying loans include:
Conventional loans
FHA, VA, or Rural Housing loans
Utah Housing Corporation loans
Cash Buyers should contact Utah Housing directly for assistance in qualifying.
To learn more about the Home Run 2 Grant visit www.utahhousingcorp.org.
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