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!