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!
