Utah Mortgage Loans

Getting a Mortgage loan is the most crucial part of the real estate purchase. Getting prequalified is the first step home buyers should take along the path the home ownership. It is free to get pre-qualified, and can give you real answers of what a house payment will really be like for you. It is highly recommended that you get quotes from several different lenders before filling out a loan application and committing to a particular program.

In the last few months loan standards have changed, and it is not quite as easy to get a Utah Mortgage Loan as it used to be, but it is very possible if you have decent income, credit, and employment history. There are many different loan products where you can put nothing down with a UTAH housing loan, Rural Housing Loan, FHA loan, or use a conventional loan with an outstanding rate.

Get Prequalified

Before ever seeing a house for sale, you should get pre-qualified by a mortgage lender. A prequalification can help you determine how much house you can afford, and what the true cost is really going to be for you. To get free mortgage estimates click the link below:

Free Utah Mortgage Quote

Pre-Approval

Pre-approval goes a step beyond preqalification. To be truly pre-approved your lender checks your credit and verifies employment and income. To really strengthen your offer, and prevent future embarrasment, preapproval is highly recommended.

Utah Mortgage Lenders

Although there are thousands of Utah Mortgage Lenders, not all can do the same thing or offer the same programs.

There are two main types of Mortgage Lenders Mortgage Brokers and Mortgage Banks:

Utah Mortgage Brokers:

A broker does not fund the loan. Instead they shop around for many different loan products to find the best possible deal. The disadvantage of Mortgage Brokers is that they are not as directly involved in the lending process. Brokers often have no idea what is going on with your loan and why the underwriters aren't approving your loan. It is much harder for brokers to control if your loan is going to close on time.

Utah Mortgage Banks:

Mortgage bankers are just that, banks. They offer you loans that are usually funded by their bank directly. Mortgage bankers are limited on the number of options and flexibility they can offer you. However, many banks are also brokers and they can offer you the best of both lending worlds.

Other options for obtaining home loans that don't require traditional financing include seller financing where the seller actually carries the mortgage, and hard money loans where private lenders provide short term high interest loans based on the value of the property.

Popular Loan Products

With the recent changes in the mortgage market, the popular loan products and qualifying factors have changed. Conventional loans no longer dominate the mortgage world. The day of stated income, no doc, and 80-20's has gone. Mortgage Brokers and companies have had to rely more on FHA and government backed loans. Here is a break down of a few of the more popular loan products being used.

Conventional Loans - Although conventional loans aren't as popular as they were a few years ago they are still usually the best alternative when you have a healthy down payment. Having 20% down will usually give you the best interest rate, and you will not be required to pay for mortgage insurance.

FHA Loans - FHA loans were more difficult and cumbersome for mortgage brokers to do in the past. Now many lenders that couldn't do FHA are out of business or seriously struggling. FHA loans typically have a rate very similar to conventional rates, and usually better. There are no income restrictions with FHA and the Mortgage Insurance is less expensive. Depending on other criteria, credit scores can be quite low with FHA loans as there is currently no minimum requirement.

FHA loans will finance 97% loan to Value. The other 3% can be gifted by a relative, or even the seller of the house through the nehimiah gift program. So a buyer actually can get into a house with very little down by using a FHA loan.

FHA loans require upfront mortgage insurance as well as monthly M.I. that is required for 5 years, even if the home has substantial equity. If you have atleast a 10% down payment then you are probably better off with a conventional loan.

Utah Housing Loans- The Utah housing loan is usually the best loan product for first time home buyers with little or no down payment. This is a subsidized loan and there are very strict income requirements. The interest rate on the Utah housing loan is usually less than conventional and FHA loans. For 100% financing, the first loan is for 97% of the value and the second is for 3%. The second loan is just 1% higher and can be paid off at any time. The Utah Housing loan also has mortgage insurance, and the buyer must have a 660 credit score.

Rural Housing USDA Loans - In rural areas of Utah, lower income buyers can qualify for the Rural Housing loan. The nice thing about the rural housing loan is that it is a true no money down loan, and there is no monthly mortgage payment. There is however an upfront mortgage insuarnce of 2%, which can be added on the back end of the loan.

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