This town offers interest-free loans of up to $ 40,000 for first-time homebuyers
First-time home buyers may be eligible for a loan of $ 40,000 to cover closing costs.
If you’re looking for affordable cities and could benefit from incentives for new home buyers, take a look at Provo, Utah. As it is Utah’s third largest city, there is plenty to see and do. If you have a dream of owning a home, you can also see if you are eligible for the city’s interest-free loan for the purchase of a first home. This is a zero rate loan covering up to $ 40,000 in closing costs.
Provo is one of the most affordable places to live in the United States. The estimated cost of living is $ 61,145, while the median household income is $ 79,152. In addition to this accessibility, Provo has a Home buying assistance program and down payment which provides loans to cover the down payment and closing costs.
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How the program works
The Home Buyer’s and Downpayment Assistance Program helps low- to moderate-income individuals and families purchase a home and offers a 0% interest deferred loan to homebuyers. ‘a first eligible home. They can use this loan to cover the closing costs of a mortgage on a single family residence in the city of Provo.
The loan remains at 0% interest as long as the buyer lives and owns the house. Once the house is sold, the loan is due and payable in full. If the buyer sells the home or leaves it within two years of purchase, a prepayment penalty of $ 5,000 is applied.
Here are the eligibility conditions:
- Applicants must first obtain a mortgage first.
- Applicants must have a credit score of at least 650.
- Applicant’s cash flow must not exceed $ 15,000 at the time of closing.
- The property must be a single family home in Provo City.
- The property must not exceed a maximum purchase price of $ 316,000.
- The buyer must not have owned a principal residence during the past three years.
- The buyer should be able to deposit $ 1,000 of their own money.
- Total household income must not exceed program income limits.
Here’s a breakdown of the program’s income limits:
- 1 person: $ 45,050
- 2 people: $ 51,145
- 3 people: $ 57,900
- 4 people: $ 64,300
- 5 people: $ 69,450
- 6 people: $ 74,600
- 7 people: $ 79,750
- 8 people: $ 84,900
How much money is available?
The loan is based on need. The loan amount depends on the purchase price of the house and the applicant’s credit rating. The total loan amount should not exceed 20% of the purchase price of the house and the total loan amount should not exceed $ 25,000 for applicants with a credit score below 700. For applicants with a credit score is 700 or more, the total loan amount should not exceed $ 40,000.
If you are looking to relocate to an affordable city in the United States, consider Provo. You will benefit from a cost of living index 3% lower than the national average. Additionally, you may be eligible for this first-time home purchase loan to cover the cost of closing your home. Since home closing costs can add up quickly, this is a useful program.