Home Purchase Plus

What is it?

• A 0% deferred payment loan to assist low-income families/individuals in  becoming Provo real estate owners.
• Must qualify for a first mortgage through a lender of the buyer’s choice.  It is a requirement that spouses or partners be included on our loan and on title whether or not their income is necessary to qualify for this loan.
• Those purchasing a NeighborWorks of Provo rehab or newly constructed home must obtain their first mortgage through NeighborWorks of Provo.
• Single individuals may qualify for loans on a maximum two-bedroom house.

How much can you qualify for?

• The Home Purchase Plus loan is to provide down-payment assistance of up to $20,000 in the Pioneer Neighborhoods and Central Business District Neighborhoods (see map) or $10,000 elsewhere in Provo.
• You must be able to put down $1,000 of your own money.
• Subject to RDA underwriting criteria.

What housing qualifies?

• Purchase price of the home may not exceed HUD limitations (currently $232,305).
• Property may be a single-family home, a home with a legal accessory apartment, one half of a twin home or town home.
• Within the Central Business District, down-payment assistance can be obtained for condominiums only.
• Home may not be currently occupied by renters who would be displaced by the purchase.

What are the terms?

• Home Purchase Plus is a 0% interest, deferred payment loan.  No payment is due as long as the applicant continues to own and live in the home as their primary residence.
• The Redevelopment Agency may grant up to $5,000 of the loan amount for approved items that improve the exterior of the home.  Improvements must be completed within two (2) years of the date of loan closing.  The forgivable portion does not apply to condominiums.  Contact the RDA for a list of approved improvements.
• Different standards will apply for the forgivable portion of the loans for NeighborWorks of Provo homes.
• As a condition of the loan, a 15-year owner-occupancy covenant shall be recorded against the property.

What you need to do to apply…

• Return a completed and signed application. (Applications available online).
• Attach copies of Federal Income Tax returns (1040 ‘s) for the past three years.
• Attach copies of pay stubs for the last three months for all working household members over 18 years of age. (Minimum time on current job is 6 months and cannot be on probation.)
• Attach Certification of Completion of “Pre-Home Ownership Counseling” offered through Community Action Services, or NeighborWorks of Provo.
• Attach Sellers Affidavit (form included in application or provided by Redevelopment Agency).

How long does it take to process a loan application?

• Our normal loan processing time is approximately one week to determine eligibility for Home Purchase Plus and an average of 2-3 weeks to close.