The “Loan to Own” program is back in Utah County! This program assists with financing downpayment and closing costs for low and moderate income households. It’s a 0% interest deferred loan to help people get into houses when cash is tight. It’s administered through the Provo City redevelopment agency but is available to several Utah County cities and areas.
Brief Description:
- Loan to Own is a down-payment and closing-cost assistance loan to income qualified persons who have not owned a home within the last three (3) years. Funds are available in the following cities: Lehi, Lindon, Orem, Payson, Pleasant Grove, Spanish Fork, Springville, and Unincorporated Utah County.
- This loan can be used for closing costs minus prepaid items.
- Maximum loan amount for a home 29 years or newer is $5,000. The maximum loan amount for a home older than 30 years is $15,000. The loan is at 0% interest with no payment due as long as the applicant continues to own and reside in the home as their primary residence.
- 20% of the loan amount can be forgiven on the sixth anniversary of the closing date and an additional 20% for each subsequent year until the loan is forgiven (with proof of occupancy). Any time the property ceases to be owner occupied, the balance of the loan is due and payable in full.
- A background check will be performed on all applicants.
- Applicants must attend the Pre Home-Ownership Counseling Class. The class must be scheduled before the application can be turned in. The class can be scheduled by calling Community Action at 801-691-5200 or online at www.comunityactionuc.org. The Certifi- cate of Completion must be brought to our office before the loan can be closed.
For more information, visit http://www.loantoown.net/ or simply contact RedSign. We are familiar with the program and can help assist with applying for the program.
