Residential Mortgage Lending & Loans

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

It’s easy to understand why many people looking for a new home are turning to FHA insured loan programs. Because FHA Loans are insured by the Federal Housing Administration homebuyers have an easier time qualifying for a mortgage. Those who typically benefit most by an FHA loan are first-time home buyers and those who have less than perfect credit.

A USDA Loan is a mortgage loan that is insured by the US Department of Agriculture and available to qualified individuals who are purchasing or refinancing their home loan in an area that is not considered a major metropolitan area by USDA.

Generally these loans are available to anyone who meets minimum credit guidelines and local area income requirements and is purchasing a home or refinancing their home in an area that is not considered a major metropolitan area by USDA.

There are several ways to think about it: Would it lower your payment, and by how much? How long would it take to “break even” where the monthly savings add up to the cost of the refinance?  (All refinance loans have a cost – even so called “no-cost” refis.)

Most refinances are structured so that the cost of the refinance loan is rolled into the loan balance. That means you’re paying interest on the cost of the refinance for the full length of the loan. If the cost of the refinance is $3000 and it is rolled into the loan, and you only make the regular monthly payment, by the time you make your last payment on the loan after 30 years, you will have paid an additional $2,800 in interest on top of the original $3,000 cost of the refinance (based on a 5% interest rate)! That’s why, for most people, the smarter move is to pay at least part of your monthly savings into the mortgage on top of the regular monthly payment until you have brought the loan balance back to where it was before you refinanced. We will explain all your options to you so you can make an informed choice about whether the refinance makes sense for you in your situation.

Conventional Loans are mortgage loans that are not insured by the government (like FHA, VA, USDA Loans), but they typically meet the lending guidelines that have been set by Fannie Mae or Freddie Mac. Typically, conventional loans have better rates, terms and/or lower fees than other types of loans. However, conventional loans typically require a borrower to have good-to-excellent credit, reasonable amounts of monthly debt obligations, a down payment of 5-20% and reliable monthly income. Conventional loans are ideal for borrowers with excellent credit and at least a 5% down payment.

Utah Housing was established by the Utah Legislature in 1975 to provide decent, safe, and sanitary housing for low and moderate income families of the state.

There are 4 loan options within Utah Housing: