If Buyer does not have a downpayment?

In today's lending situation, is it possible to buy a property with no downpayment -

well if they do not have a downpayment, as long as they have two credit scores above a 660 and they meet the income qualifications, they are eligible for the Utah housing program. They need to talk to a lender to make sure they qualify

Home Run Grant to Purchase property in Utah

Besides $8,000 federal tax credit that applies to first time home buyers or those who haven't owned the home in the past three years:

Utah Governor in March signed local grant - award - $6,000 So called home run grant is a mortgage assistance program for home buyers who purchase a newly-constructed, never occupied primary, single family residence in Utah. Home buyers must meet following income restrictions: single person - $75,000 and married couple - $150,000. Again, this grant is additional and separate from federal grant, you have to work directly with mortgage banker, for step-by-step instruction visit utahhousingcorp.org...

Important Facts About FHA

1. A Borrowner can obtain financing while still in a Chapter 13 bankruptsy
2. Utah Housing (through the FHA program) will finance up to 103% of a home's value. In other words, you can finance most of the time, everything, no down payment is needed, and even closing costs.
3. Sweat Equity is allowed for new construcion.
4. Screens on windows are no longer required.
5. Termite inspections are no longer required unless specified by the appraiser.
6. Non-occupant co-borrowers are allowed.
7. All money to close is allowed to come from a gift.
8. New, temporary loan amounts in Salt Lake County were increased to $729,750

Utah's Real Estate Market

Two recent real estate reports show Utah's real estate market is considerably weaker than a year ago, but home prices continue to appreciate. A report out yesterday on April's home sales in Salt Lake show a volume decline of 33%, but a price increase of 2%. This is reflective of other areas of the country that showed a decline ahead of us.

The Salt Lake Board of Realtors is optimistic about these numbers:

But Realtor officials said Tuesday they believe that any downturn here will be comparably shallow and short-lived.

Board president Jillinda Bowers said April was the third consecutive month in which home sales increased in the county. Last year, sales started to slip in the summer, with January's total of 634 an eight-year low for monthly sales. April's total of 972 units sold is up from 934 in March and 746 in February.

"It appears to be a trend" of increasing sales, Bowers said.

I disagree. Utah's housing market is having a downturn and will continue to do so for probably a year. Looking at month over month sales is a poor indicator of progress. However, demand for starter homes and low cost homes will continue to increase with commensurate price increases. Homes above $300k in the valley will have slight problems selling. Price points above $600,000 will see the greatest price drops, especially next year, the most difficult price to sell.

Even though the analysis may not sound good, what we should focus is:

1. the interest rate is still low
2. it is a good time to buy: you can negotiate concessions and possibly lower price
3. if you are buying the house for more than two years, you will be fine. And, in the meantime, your house is still appreciating
4. The rent market is strong and very competitive, definitely landlord's market
5. we are going through this economically difficult times better than other states.


Utah is No. 1 among states in home-price appreciation with a 5.6 percent increase, relinquishing the top spot to Wyoming, which posted a 6.3 percent gain, according to a report released today.

Montana rounded out the top 3 with a 4.9 percent increase, according to the House Price Index report by the Office of Federal Housing Enterprise Oversight.

The OFHEO numbers reflect refinances as well as purchases and that's why they show bigger increases than the Board of Realtors that only reflect sales of existing homes. Realtor numbers showed less than 1% appreciation in the first quarter.

I don't expect a housing crash. It will slower than 2005 and 2006, little slower or same as 2007.

Mortgage Rates Drop Below 6%

According to Freddie Mac's data, mortgage rates have dropped back below 6 percent after spending more than a month above that threshold. Thanks to the Federal Reserve's aggressive moves to insulate the U.S. economy by slashing borrowing costs, 30-year fixed home loans averaged 5.87 in the latest numbers. That compares to 6.13 percent this time last week and represents the first time since mid-February that the benchmark interest rate has been less than 6 percent. "Slowing consumer spending and weak employment conditions are among the concerns behind the Fed's decision to lower the target federal funds rate," says Freddie Mac chief economist Frank Nothaft. Source: Tulsa World (Okla.) (03/21/08)

The rates are also different for different regions. I am reseraching how it affected Utah Rates so far. For now, I can say one of the lowest rates (Utah Housing program) indicated rate to be 6.09%. Utah Housing is always one of the lowest rate out there, and not everyone qualify to apply for these loans. Have questions, if you do?

Please call me directly, Marina at 801-649-5883

FHA/Utah Housing

Currently at 5.5%/5.49%
1. easier credit qualifying
2. current max loan amount is $362,790 and FHA loan limit may increase to FNMA limit of $417,000
3. Gift for 3% down payment still acceptable
4. Property requirements are not as tight as they once were
5. 100-106% Utah Housing loans
6. Income limits $70,500 for a family of 3 and requires two scores above 620
7. Down Payment assistance still available (until April 2008)
8. Low monthly Mortgage Insurance- only 0.5%
9. Rates similar to Conventional

Any questions, please call me (Marina-your Real Estate consultant) at 801-649-5883

What Mortgage Programs are available now? (Part I)

1. There are still lender out there who lend their own money
2. 100% Financing is still available-with one loan and $500 contribution
3. 80/10/10 still available for Jumbo and Conventional
4. States Income/Stated Assest still available-10% down payment
5. Low FICO Lending still available (patience is required)
6. FHA/Utah Housing (currently 5.5%, in more details tomorrow)
7. Why Mortgage Insurance (MI) is good (in more details tomorrow)
8. no MI loans available up to 100% on conforming and 90% on Jumbo-I will try to show you that not only interest rate is important when you get estimates from broker
9. new Rehab loan for buyers
10. Interest Abatement