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|
|Property and Liability Insurance||$300||$360|
|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
|Tax savings on Mortgage Interest (first year)
(.165 x $8574)
|Tax savings on Property Taxes
(.165 X $1620)
|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!