Between now and the end of March is probably the best time to buy a home that you will ever see again.  Prices are way down, interest rates are low and incentives are high.  Most people are aware of the federal tax credits being offered: $8,000 for first-time home buyers, and $6,500 for existing home owners.  Most people are not aware, however, that many cities are also offering downpayment assistance in addition to the federal tax credit.  Over the next week or so, I will be giving you information about the downpayment assistance programs offered by some of the cities here in Salt Lake and Davis counties.  If you would like information about cities I don’t report on, please give me a call and I will find out for you.  We will begin today with West Valley City since that’s where I live.

West Valley City will provide a $5,000.00 grant/loan for low-to-moderate income families to purchase a home not to exceed $180,000 within the limits of West Valley City.  Once the application is approved, the applicant is required to complete one of the approved First Time Home Buyers Classes on finance and budgeting and submit a copy of certificate of completion.  No online classes will be accepted.  After the applicant has been approved and the class certificate is turned in at the WVC office, the applicant may then submit an offer on a property.  Prior commitments, and/or offers made before being approved and completion of the class will cause immediate disqualification from the grant program.  The applicant must be able to qualify for a fixed rate mortgage loan using: FHA, VA, or conventional financing.  Applicants must qualify on their own credit (No co-signers).  All co-applicants must be listed in the mortgage loan.  No creative financing such as variable rate, adjustable rate, interest rate only, balloon payment, and/or 80/20 split, will be allowed.  In addition, the applicant must contribute a minimum of $2,000.00 toward the cost of the purchase of the home prior to closing.  The purchase price of the home may be equal to, but may not exceed $180,000.  The loan/grant must be repaid in full if the applicant sells, changes title, refinances, or moves within the first five years from the closing date.  The buyer must have had no ownership in a principal residence during the three year period ending on the date of purchase of the property.  This includes a spouse.  The annual household income of applicants cannot exceed 80% of the area median income as determined by HUD.  If you are interested in applying for this grant through West Valley City, call me and I will send you a copy of the application.  Remember, you must be approved for the grant before making an offer on a home!