Buying Your First Home

As a first time home buyer, buying real estate can be one of the smartest financial investments you will ever make. This page will give you a little information to aid you as a first time home buyer. Home ownership is the best way to build wealth and can help place you on the path to true financial freedom. Cornerstone real estate agents are members of the local MLS, and can sell you ANY home for sale listed by real estate agents. We will work to help you find the best home selection, refer you to trusted lenders, guide you, and help protect your interests through the complicated purchase process. Using a good buyers agent will save you thousands on your home purchase. Best of all, buying a home with the help of a Cornerstone Real Estate Agent is absolutely free. Here are some programs first time buyers may be able to qualify for:

$8,000 First Time Buyer Tax Credit

As part of President Obamas homeowner plan, first-time home buyers can receive up to a $8,000 tax credit that can be claimed on either their 2008 or 2009 tax returns if they buy before December of 2009.

This will be given as a tax credit even if the buyers tax liability is less than $8,000. Taxpayers are considered first time buyers if they have not owned a real estate in the last three years. They also have to commit maintain this home as their primary residence for three years.

There are income restrictions for qualify for the tax credit, but it likely won't effect many first time buyers in Cache Valley. Buyers gross income must be less than $75,000 for individuals or $150,000 for married couples.

Cache Valley First Time Home Buyer Programs

In the Logan Area, we have several programs that have been designed specifically for the First Time Home Buyer.

BRAG Assistance

The Bear River Associaton of Governments will give $2,000 in unpaid settlement costs to applicants who complete the USU Family Life Center Homeowner Education Workshop atleast a month prior to buying a home. This is an all day workshop held the second Saturday's (and sometimes the third or fourth as well) every month at the USU Campus Credit Union. It is covers all aspects of financing and purchasing a home and I would highly recommend it regardless of if you will qualify on the extra monies. This must be repaid when the home is sold.

To make a reservation call the USU Family Life Center (435) 797-7224.

Welcome Home Own In Logan

This is a First time homebuyer program sponsored by Logan City, and the Neighborhood Nonprofit Housing Corporation. Qualified new buyers purchasing a single family detached home within Logan City Limits are given a $7,500 subsidy (can be used for downpayment and/or closing cost assistance) and does not have to be repaid if the buyer owns the house for atleast 10 years.

To qualify for this grant money the buyer must be a first time homebuyer (haven't owned a home in the past three years, those who currently own a trailer that is not on a permanent foundation, those who lease or own a condominium, and/or are a displaced spouse.

Income must be below 80% of the HUD median income guidelines for Cache County. This includes income for all persons in the household over the age of 18. Please refer to HUD's income guidelines.

Must meet the housing debt ratio of 36% and the total debt-to-income ratio of 38%. The borrower's house payment cannot exceed 36% of their gross monthly income. Total monthly debt payment (including house payment) cannot exceed 38% of their gross monthly income.

Certificate for attending a Home Ownership workshop at a HUD approved agency. For the Cache County area please contact the Family Life Center, (435) 797-7224, for the workshop schedule and registration.

Applicant must provide $500 in personal funds toward the down payment or closing costs, verified per the settlement statement. Gifts are eligible to meet this requirement.

Home Start

The Home Start Program is designed to help first time buyers "save" for their down payment. It is a partnership between local lending institutions and the federal government. Locally Zions Bank and Bank of Utah participate in this program. The HSP is designed to help you accumulate funds for your downpayment and closing costs by matching every $1 you save (or are gifted) with $3, up to a maximum of $3,000 to $5,000 toward the purchase of your first home. For every year that you live in the home 1/5 of the HSP Grant is forgiven.
Utah Housing Corporation

The Utah Housing Loan

The Utah Housing Loan is a subsidized loan where borrowers can buy a house with little downpayment for a great interest rate.

FirstHome and FirstHome Plus programs offer a below-market, 30 year fixed rate mortgage loans to qualifying low and moderate income homebuyers. The loans are originated through Participating Mortgage Lenders anywhere in Utah. FirstHome interest rates change from time to time but they can save you a lot over traditional loans, especially when there is little or no down payment.