Buying Property in Utah

Other Sources of Down Payments

There are other sources of down payment and I'll cover a few of these now.

Government Grants

Government grants are available in some areas for the purchase of single family homes. These grants typically range from $2,000 to $5,000 in Salt Lake City Utah, and are earmarked for specific areas. In Salt Lake County grant programs have been available in Salt Lake City, Taylorsville, West Jordan, and other areas. Their availability is limited.

To qualify, there are specific income limits. These limits are greater for a couple than an individual and go up with number of children a family has.

Typically the grant vests 20% per year and after 5 years you don't have to pay any of it back. For more information contact us.

First Time Home Buyers Can Borrow from their retirement account

In some cases, first time home buyers can borrow up to $10,000 from their IRA or 401K without paying a 10% early withdrawal penalty. Check with your administrator to see if they allow this.

Also, first time home buyers, per the IRS tax laws, may have owned a home before, but just not recently (? Years). Check the IRS rules because they constantly change.

Note: It’s very important you do all your research and know the rules and consequences because if this is not done properly, the amount you withdraw could be subject to an early withdraw tax penalty. So make sure you get all the details straight with your plan administrator and talk to a lender about this. Also, you’ll likely have to pay some taxes on the money you withdraw.

Gifts

Seller Financing

Another option is seller financing. However, with low interest rates and low down payment programs available, not many people use this option right now to purchase single family homes and most sellers need their equity to buy their next home.

For more information contact us.