Utah FHA Loans
If you're thinking about buying your first home, you couldn't have picked a better time. Due in part to the slightly depressed economic conditions in the country, housing prices in most areas are lower than they've been in recent memory. Now is a great time to buy your first home, and a Utah FHA loan can help you achieve that dream.
The FHA Advantage
Utah FHA loans were designed by the Federal Housing Administration to ensure that even buyers who might not otherwise qualify can receive a housing loan. When you receive a loan through the Federal Housing Administration at your local bank, the FHA provides a guaranty to lower the risk exposure to the bank. The guaranty makes it possible for the bank to provide a loan to a borrower that might not have otherwise qualified.
The FHA prides itself on working with borrowers to ensure that most of them can afford a home under their program. Though most banks require a considerable down payment (20% of the home's purchase price) and nearly perfect credit, Utah FHA loans only require 3% down and also give you the option of rolling closing costs (typically between $6,000 and $8,000 on an average loan) into the loan itself, which can save you that much more upfront.
Utah FHA Loan Limits
While, as you may have guessed, you may not be able to buy a mansion with your Utah FHA loan, the program ensures that borrowers in every area can afford a home. The maximum loan limit adjusts based on the cost of living in certain areas, but never goes below a certain pre-set limit (currently $271,050 for a single family dwelling). In Utah, for example, the limit in Davis County is $397,500 and in Provo, it's $323,750. Many other areas, since their cost of living is not overly high, have the pre-set limit in effect. To be sure that you have the appropriate lending limit for your area, check with your lender who can give you the current limit for your county. Additionally, if you're thinking about buying a multi-family dwelling (which is in fact possible with a Utah FHA loan), it's particularly important to check with your lender since the amount of your loan will vary based not only on your location but also on the number of units in your dwelling.