First Time Home Buyers Get a Break!

If you are a first time home buyer in St. George Utah or Southern Utah I thought this would be great news! Southwest Credit Union is offering a 100% no down and NO mortgage insurance loan at an interest rate that is very competitive. You can see the savings over renting a home in St. George! Homes in St. George Utah have never been more affordable! Look at the numbers…SAVE over $2000 of your hard earned wages in the first year!

First Time Home Buyers Fact Sheet

The First Time Home Buyers program is for borrowers who have never owned a home before. The program allows 100% financing for the purchase of a home with no down payment, no discount points, or Mortgage Insurance required. If any applicant has owned a home before, they will not qualify for this program.

Eligibility All members are eligible including new members
Down Payment No down payment required
Products Available Fixed rates are available
Interest Rate Approximately one percent (1%) above Conventional 30-year market rate. Current rate is 5%
Maximum Household Income The maximum household income is $65,000
Minimum Loan Amount The minimum loan amount is $80,000
Maximum Loan Amount The maximum loan amount is $250,000
Minimum Credit Score The minimum credit score is 680 (all three bureau scores)
Mortgage Insurance None required
Ratios Housing debt to income ratio: 45%. Total debt to income ratio: 50%
Property Type Single Family detached dwellings only
Occupancy Owner occupied only. Second home and investment properties are not eligible.

Renting vs. Buying Analysis

Costs and Savings Renting Buying
Annual Expenses
Rent ($850/month)
Mortgage ($805.23/month)
$10,200 $9,663
Property and Liability Insurance $300 $360
Property Taxes 0 $1,620
Maintenance 0 $500
Total Annual Expenses $10,500 $12,143
Savings Based on Tax Deductions and Interest Earned
Principal repaid on mortgage $2,213
Interest on funds not used for closing costs @ .5%
(1-MTR) x savings interest rate x closing costs
(1-.165) x .005 x $5700
$24
Tax savings on Mortgage Interest (first year)
(.165 x $8574)
$1,414
Tax savings on Property Taxes
(.165 X $1620)
$267
Net Costs for First Year $10,476 $8,249
First Year Savings $2,227
Comparison assumes a purchase price of $150,000, a loan amount of $150,000 a 30-year term and interest rate at 5.00%. Buyer’s Marginal Tax Rate is 16.5%.

SouthWest offers free pre-qualification for this program and many others. Please give me a call to discuss this program further or to answer any other mortgage questions you might have. For a limited time, online applicants receive a discounted $425 origination fee!

I look forward to doing business with you in 2012! Let’s make it a great year!

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