$6,000 grant for Utah new home purchases

The Utah legislature just took some of that federal money coming our way and pushed it into the waiting hands of soon-to-be new home buyers. While the program, dubbed the Home Run Grant, has been approved, it will likely be the end of this week or next before any funds will be available through Utah Housing.

With any grant or government program, there are many stipulations. First, the home or condo must must be new. Generally a new home is considered to be one that has not been lived in before.

The next stipulation is based on income. The limits have been set high, with $75,000 for an individual or $150,000 for a couple filing jointly. Married couples filing jointly get a nice workaround for the $75k limit, as one person could make $100,000/year as long as the total joint income is less than $150k.

Another great feature of Home Run is that it can be combined with the $8,000 first time home buyer tax credit. It is possible the $6,000 will be taxed by the IRS, though the final decision on this is still pending at press time.

Before you give up on this incredible tax benefit, be aware a first time home buyer is generally considered someone who has not owned a primary residence in the last three years. There are also a couple of divorce considerations such as a single parent or a displaced homemaker.

The loan must be a 30 year, fixed rate loan. Most common loan types qualify, and the application must be made by a Utah licensed mortgage lender. Your lender makes application for the loan for you through Utah Housing. It's a good idea to stay in communication with your lender or request documentation of progress. In my own business as a Realtor, I do this on a regular basis for my clients.

A total of $10 million has been set aside for 1,666 buyers in Utah. The grants will be issued on a first-come, first-serve basis, which is expected to be determined at the time of final underwriting. Other early information has pointed toward a '30 day lock,' which would create the ability to get funds conditionally approved 30 days prior to closing. Bare in mind the final details are forthcoming.

The new home must be occupied as the buyer's primary residence within 30 days of closing. There may be a co-signor in some circumstances, and the funds will be available immediately upon closing.

The Home Run Grant program is expected to quickly eliminate the inventory of existing new homes. It will stimulate the economy further by boosting new home construction. New home construction will create much-needed jobs in an industry that has been hit the hardest since the market correction beginning in late 2007.

There are many programs in place to help home buyers obtain loans in Utah. Most people can still qualify for home loans. Be sure to check with your trusted lender for more information.

To search all real estate listed by every Realtor in the Salt Lake City area, visit www.saltyhomes.com. No registration is required to use the site.