Have you put off buying your first home because you think you will not be approved for a loan or you don’t have enough money for a down payment? If so, keep reading. The mortgage industry is evolving to help those who previously thought homeownership was out of reach to obtain the necessary financing and assistance to purchase a new home.
Below are a few things you should know that might make purchasing a new home easier than you think:
Mortgage Qualification Changes
- Conventional loans with 5% down payments are now available for individuals with credit scores as low as 620.
- “One in five borrowers in the first two quarters of 2014 took out a conventional loan with a down payment of less than 10 percent,” according to a Freddie Mac report.
- Mortgage Insurance companies are lowering premiums and relaxing guidelines.
- FHA Loans are readily accessible, interest rates are low and monthly mortgage payments are still historically low.
Down payment Assistance
- There are more than 2,000 down payment assistance programs across the country.
- Most first-time home buyers overestimate the amount of money needed to purchase a home.
- Down payment assistance isn’t just for low income families or low cost housing.
- Some examples of homeownership assistance programs include: Down payment grants (these usually do not have to be repaid). Federal income tax credits, Mortgage Credit Certificates (MCCs) that help low-to-moderate income borrowers afford their housing payments with tax credits for the life of the loan.
More information on down payment assistance programs is available here.
Daybreak has a variety of affordable housing options for first-time homebuyers, whether you are looking for a townhome or a single-family home.
Creekside Village continues the rich traditions of inspired design that has made Daybreak Utah’s favorite new home community. Homes are available in a variety of styles based on some of Salt Lake City’s most beloved historic neighborhoods (with today’s livability and energy efficiency). But what really sets it apart is what happens once you step out your front door. A 15-acre park, excellent schools, walking trails and community gatherings all add up to a different kind of life –one that feels more like living.
Brookside Townhomes by Holmes Homes
Shoreline Townhomes by Holmes Homes
Paseo Single-Family homes by Ivory Homes
Find the best of both worlds: a walkable, energetic lifestyle without the stress of city living. SoDa Row Village is a fresh take on community with modern homes and local businesses in a colorful, outdoorsy setting. Oh, and all the trail, park and lake access your inner triathlete could ask for. So you can have your lemonade and drink it too.
Sky Terrace Collection by Sego Homes
Contact a Daybreak builder sales representative today to learn more about what financing and new home options are available.
Interested in seeing more? Check out more modern homes at Daybreak here.