What does affordable housing in Park City mean? As we see home prices go up in Park City and surrounding areas, more buyers are seeking affordable housing options when purchasing a home.
Affordable Housing in Park City 101
Luckily, both Park City municipal and Summit County governments see the importance of affordable housing and have added this component to current and future developments. These deed restricted homes usually have limitations on occupancy. They also must be owner-occupied and cannot be used as a second home or rental property. To qualify, residents often must meet income limitations. There may also be a 3% value appreciation cap per year.
If you’re interested in affordable housing Park City, Mountainlands Community Housing is a great resource. This Summit County nonprofit organization oversees and develops affordable housing. You can sign up for their mailing list and get detailed information on which affordable homes are available.
Park City Municipal also offers some affordable homes and lists their projects online. After several years without any new affordable housing projects, several new homes have recently become available. You can monitor affordable properties available for resale by checking listings from both Mountainlands and Park City Municipal. Because of the resale restrictions on these homes, a realtor is not usually involved in the sales transaction.
Creative Ways of Finding Affordable Housing
Keep in mind that you don’t have to purchase a deed restricted home to find an affordable one. There are many “market rate” homes still available in Park City, Summit County, and the surrounding area. Condominiums tend to be less expensive than single family homes. You can also expand your search to outlying areas like Kamas, Oakley, Coalville, and Heber City. A real estate agent can help you with these purchases.
Lending for Affordable Housing
Lending for affordable housing doesn’t differ from lending for market rate homes. Do make sure, however, that the lender you use is familiar with the nuisances of the restrictions placed on these homes. Both Mountainlands and Park City Municipal can recommend local preferred lenders.
Often, the buyer looking for affordable housing has smaller down payments or no down payment requirement at all. USDA Rural Housing loans offer 100% financing, conventional loans offer 3-5% down, Guild Mortgage offers a loan with 1% down, and FHA requires 3.5% down. If qualifying is an issue, you can enlist a cosigner like a parent, sister, uncle, or grandparent. Discuss your specific situation with a professional lender, who will guide you through the best loan options for you.
By Guest Blogger Amy Cairn, Senior Loan Officer / Sales Manager at Guild Mortgage Company (435.640.1878 | [email protected])