February 16, 2011
Utah Housing Corporation announced the closing of a $74 million bond sale completing the commitment of bond purchases to the US Department of Treasury under a special program under the 2008 Housing and Economic recovery Act (HERA). Utah Housing sold $44 million bonds to the US Department of Treasury along with $30 million to private investors seeking a return that is not subject to federal income taxes. The issuance provided 30-year fixed rate mortgage loans for over 500 low- to moderate-income families throughout the state of Utah to purchase their first homes. The average purchase price for each home was $142,800 which is about 65% of the current average Utah home sales price. Each home owner’s household income was approximately 73% of the Area Median Income (AMI) for their home's location.
Grant Whitaker, President of Utah Housing Corporation, said “This bond issue has been one factor to help Utah’s real estate industry recover. We were a few years behind the rest of the nation in seeing a decline in home prices, and our home price recovery is going to be behind as well. Our program has helped stimulate home sales and should forecast a strong future for Utah homeowners. We are pleased to continue to help Utahns purchase their first home, even during these difficult times.”
UHC makes a concerted effort to help special needs groups, including single parents, veterans, and first-time homebuyers. One of the biggest obstacles for these Utahns is coming up with the funds for down payments and closing costs. Since its inception, Utah Housing has provided over $80 million in funds to finance borrower’s down payment and closing costs for many of the families to buy their first homes.
Historically, the home loans made to families that did not have their own cash for a down payment have performed as well as those where the borrowers had savings for their down payment. Utah Housing loans actually have lower delinquency and foreclosure rates than other comparable loans in Utah or almost anywhere else in the nation. All Utah Housing loans are serviced at the Utah Housing offices by local residents. Utah Housing mortgage loans are not subprime loans; borrowers must demonstrate that they have steady income and good credit scores.
About Utah Housing Corporation
Utah Housing has been serving Utah’s Housing needs through finance and innovation since 1977. As a public, not-for-profit corporation, Utah Housing has provided more than 62,000 mortgages for Utah's home buyers, and 23,000 affordable rental units in communities throughout the state. Dozens of special needs units such as transitional housing are also financed through Utah Housing every year.