What is it?

• A 0% deferred payment loan to assist low-income families/individuals in becoming home owners in Provo (see income chart).
• Must be first-time home buyer (click here for definition of first-time home buyer).
• Must qualify for a first mortgage through a lender of the buyer’s choice.  It is a requirement that spouses or partners be included on our loan and on title whether or not their income is necessary to qualify for this loan.
• Single individuals may qualify for loans on a maximum two-bedroom house.

How much can you qualify for?

• The Home Purchase Plus loan is to provide down-payment and/or closing cost assistance of 6% of the purchase price or $10,000, whichever is less, city wide.
• $20,000 available for down-payment assistance for Liberty Place Development only.
• You must be able to put down $1,000 of your own money.
• Subject to RDA underwriting criteria.

What housing qualifies?

• Purchase price of the home may not exceed HUD limitations ($196,531 - effective 2-6-12).
• Property may be a single-family home, a home with a legal accessory apartment, one half of a twin home or town home.
• Within the Central Business District, down-payment assistance can be obtained for condominiums only.
• Home may not be currently occupied by renters who would be displaced by the purchase.

What are the terms?

• Home Purchase Plus is a 0% interest, deferred payment loan.  No payment is due as long as the applicant continues to own and live in the home as their primary residence.
• A $5,000 penalty will be assessed to down-payment recipients if the property is sold within two years of obtaining the loan.
• Liquid assets cannot exceed $15,000 up to time of closing.

What you need to do to apply...

• Return a completed and signed application. (Applications available online).
• Attach copies of Federal Income Tax returns (1040 's) for the past three years.
• Attach copies of pay stubs for the last three months for all working household members over 18 years of age. (Minimum time on current job is 6 months and cannot be on probation.)
• Attach Certification of Completion of "Pre-Home Ownership Counseling" offered through Community Action Services (801-373-8200 located at 815 S. Freedom Blvd, Provo), or NeighborWorks of Provo (801-375-5820 located at 39 W. 300 N. Provo.
• Attach Sellers Affidavit (form included in application or provided by Redevelopment Agency).
• Attach copies of last three month's bank statements.
• Original verification that all household members are US Citizens, US Nationals or permanent resident aliens, plus Social Security Cards (we will copy in our office).  Click here for a list of what is acceptable for verification

How long does it take to process a loan application?

• Our normal loan processing time is approximately one week to determine income eligibility and an average of 2-3 weeks to close.