Home buyers can get instant equity for homes purchased by April 30

(Utah Pulse) First time home buyers have until April 30 to secure up to $8,000 in immediate home equity or cash at closing by buying a home through an innovative Equity Now mortgage from Utah Housing Corporation.

Equity Now expedites the availability of up to $8,000 in federal tax credits to first time home buyers, so they get the cash at closing rather than after they purchase a home and after they file their tax returns. If they apply the tax credit cash to their mortgage they get instant equity. The federal tax credit and Equity Now expire June 30, but purchase agreements must be finalized by April 30.

Utah Housing Corporation is an independent public corporation created by the state of Utah with a mission to provide affordable housing opportunities to low and moderate income Utahns. A Utah Housing mortgage is one of the rare opportunities for down payment assistance in today’s more restrictive mortgage loan environments. That’s because Utah Housing has a long history of providing stable mortgages to well qualified buyers. The default rate on Utah Housing Corporation mortgages is consistently lower than other mortgage loans. At no cost to the state, Utah Housing Corporation has provided financing for more than 60,000 single family home purchases and 20,000 multi-family apartments since it was started in 1977.

Grant Whitaker, president and Chief Executive Officer of Utah Housing Corporation, said Equity Now has helped more than 600 homebuyers get into their first homes.

“Utah Housing Corporation is pleased to help Utahns achieve the dream of home ownership through competitive interest rates and down payment assistance,” Whitaker said. “Equity Now is particularly attractive to homebuyers because it adds even greater value to the federal tax credit.”

Equity Now offers a 4.83 percent interest 30 year fixed first mortgage. A second Equity Now mortgage provides much of the normally required down payment. Equity Now and other Utah Housing mortgages for low and moderate income first time home buyers are available through more than 35 participating mortgage lenders. Utah Housing Corporation does not provide mortgages directly to home buyers. A list of mortgage lenders and other information is available at www.UtahHousingCorp.org

Other incentives to buy homes are also available. The federal government is providing a tax credit of up to $6,500 for repeat home buyers, with purchase agreements required by April 30 and final sales by June 30. Also, some municipalities offer home buying incentives similar to the Home Run grant administered last year by Utah Housing Corporation. Affordable home prices and historic low interest rates are a continuing draw.
 

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