Today, Mandi Henriod from Veritas Funding is here to explain a great new tool for homebuyers.
As you know, the Salt Lake City real estate market and the Wasatch Front market both favor sellers. Properties are going on the market and getting five, 10, 20, or even 33 offers.
As a homebuyer, it can be very difficult to compete in that type of market.Luckily, there is a great new loan product available to help you.
First, we need to explain the benefits of conventional loans vs. FHA loans. If you present an offer to a seller and you have an FHA loan, your loan puts a burden on the seller. The seller will have to do more work on the property in order to get to the closing table with your offer. Also, sellers generally regard FHA buyers as less strong than conventional buyers.
However, the advantage of the FHA loan is that low down payment. When you combine the FHA loan program with Utah housing programs, you can get into a house for no money down.
Luckily, Mandi has a tool that will help you get a conventional loan and pay even less money out of pocket for a home than you would with an FHA loan.
This program allows you to get a conventional loan with a 3% down payment, which is half a percent lower than the FHA loan. The program also allows the lender to give you a 2% gift, which leaves you with a 1% down payment.
The lender can give you $1,000 for every $100,000 spent, which may not seem like much but certainly helps you get into the home of your dreams.
So, this program makes your offer look stronger because you have a conventional loan and you don’t have to put as much money down as you would with an FHA loan. Plus, you do not need to be a first-time homebuyer to qualify for this program, and there are no household income limitations. That is great news because income limitations are a big stumbling block for other low or no down payment programs
If you have any more questions about this great Fannie Mae program, you can contact Mandi at 801-638-1005. As always, if you have any Salt Lake City real estate questions, just give me a call or send me an email. I would be happy to help you!