Just a few years ago there were many ways to buy a Salt Lake City home, condo or duplex with no money down. You could borrow 100% of the money you needed to purchase the home. At that time, the market was going up and lenders were loose with their money. Times changed quickly and those home loans are gone.
So how do you buy a Salt Lake City home, condo or duplex if you lack the down payment and closing costs?
FHA loans only require 3.5% down for the purchase a home, condo or duplex as long as the buyer intends to move in and occupy the home as their primary residence.
FHA also allows for a family member to gift all or part of the down payment and closing costs. So if your mom, dad, grandpa, grandma or other family members are doing well, they can give you a gift for all or part of the down payment and closing cost for the purchase of your Salt Lake City home, condo or duplex. It has to be a gift, not a loan.
Also, if you don’t have the closing costs, they are frequently negotiated into the deal so that the Seller pays all or part of the Buyer’s closing costs.
Regarding Salt Lake City condos, the condo project must be FHA approved to qualify for an FHA loan. FHA might do a spot approval if the condo is not FHA approved, but that isn’t a sure thing.
And I mention again, the buyer must move into the home and occupy the property as their primary residence. If you’re an investor breaking the rules and get caught, FHA will call the loan due and mess up your life, so please don’t do that.
If you need help with the purchase of a Salt Lake City home, condo or duplex, please contact me. I’m an experienced Salt Lake City realtor and the majority of my clients are buyers of Salt Lake City homes and condos.
Associate Broker, MBA
SLCHomes Real Estate