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2022 Wyoming First-Time Homebuyer Programs
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Wyoming offers several first-time homebuyer programs specifically for residents with lower incomes who may also qualify for down payment assistance for their home loans. It’s important to know, though, that these programs contain certain requirements, such as minimum occupancy periods and payback requirements if you sell or refinance your home before a specified time. Here’s what you need to know about first-time homebuyer programs in Wyoming.
Wyoming statewide and local first-time homebuyer programs
The Wyoming Community Development Authority (WCDA) offers a variety of mortgage loans, down payment assistance, tax credits and other first-time homebuyer programs to help residents purchase a home. The Welcome Home Wyoming Program also offers down payment assistance.
|Program name||Assistance amount||Assistance type||Where it’s available|
|WCDA Standard First-time Homebuyer||$719,950 top purchase price limit*||30-year mortgage with low fixed interest rate||Statewide|
|WCDA Spruce Up||$719,950 top purchase price limit*||“Single-close” loan w/fewer closing costs||Statewide|
|WCDA Home$tretch Down Payment Assistance Loan Product||$10,000 maximum||0%-interest loan with 0.080% APR based on average loan amount of $5,500||Statewide|
|Mortgage Credit Certificate||Based on individual MCC holder’s tax situation||Federal tax credit||Statewide|
|Welcome Home Wyoming Program||Maximum of 5% of the note amount||DPA is attached to 30-year, fixed-rate mortgage and is 5% of the note amount to apply to down payment or closing costs||Statewide|
*Based on county location
What to know about different types of down payment assistance
Down payment assistance programs utilize a variety of financial tools to help first-time homebuyers purchase a house. Loans, forgivable loans and grants are examples of down payment assistance that may be used with a specific program. Each one comes with its own terms that must be followed in order to avoid losing or having to repay the down payment assistance provided.
How Wyoming first-time homebuyer programs work
In order to qualify for assistance, the Wyoming Community Development Authority (WCDA) and Welcome Home Wyoming Program have specific requirements you must meet. These could include income limits, purchase price limits, minimum credit score, and maximum debt-to-income (DTI) ratios.
Typical requirements for a Wyoming first-time homebuyer program include:
- Make sure you meet any income limits.Many first-time homebuyer programs set income limits in order to receive assistance. For instance, with the Welcome Home Wyoming Program, if your loan is a government-backed loan, your income limit is $114,660.
- Complete a homebuyer education program.WCDA’s first-time homebuyer programs require participants to go through a homebuyer education program so they understand the process of buying and paying for a home.
- Have a minimum credit score.First-time homebuyer programs typically have a minimum credit score you must meet as part of the qualification program. For example, to receive WCDA down payment assistance, you need a credit score of 620 or higher.
- Do not exceed the maximum DTI ratio.Lenders look at your DTI as a way to evaluate your ability to pay your loan as agreed. The lower the DTI, the better. With the Welcome Home Wyoming Program, your DTI cannot exceed 50%.
- Be prepared for any repayment terms, should you refinance or sell your home before a specified time period.If you fail to follow the guidelines and requirements of the first-time homebuyer program, you could be required to repay the assistance you received earlier than planned. For example, with the WCDA down payment assistance program, the loan is due when it reaches 30-year maturity. However, if you sell or refinance the home before then, you have to pay the loan at that time.
Wyoming first-time homebuyer program requirements
Knowing the requirements for Wyoming first-time homebuyer programs in advance will provide insight into your ability to qualify.
|Program name||Credit score minimum||DTI ratio maximum||Maximum income limit||How long you have to live in home|
|WCDA Standard First-time Homebuyer||500 to 640, depending on loan type*||41% to 43%, depending on loan type||$311,900-$161,840**||Not specified|
|WCDA Spruce Up||500 to 640, depending on loan type*||41% to 43%, depending on loan type||$311,900-$161,840**||Not specified|
|WCDA Home$tretch Down Payment Assistance Loan Product||620||41% to 43%, depending on loan type||$311,900-$161,840**||N/A|
|Mortgage Credit Certificate||N/A||N/A||$311,900-$161,840**||Not specified|
|Welcome Home Wyoming Program||640||50%||Below $114,660||Not specified|
*Based on loan type of FHA, VA or USDA.
**Based on family household size and county location.
National first-time homebuyer programs
While Wyoming offers several first-time homebuyer programs, there are additional options available for assistance for purchasing a house. Loan programs, often known as national first-time homebuyer programs, are available at the federal level to help borrowers buy their first home. It’s possible you could combine assistance from Wyoming’s first-time homebuyer programs with these programs to maximize your assistance.
→ Conventional loans. Conventional loans, such as those offered through Fannie Mae HomeReady® and Freddie Mac Home Possible®, often have stricter requirements for qualifying, such as higher minimum credit scores. They also usually have higher loan limits, so you could get the funds you need for the house you want.
→ FHA loans. With this loan backed by the Federal Housing Administration (FHA), qualifications usually are less stringent than with conventional mortgages. For instance, the minimum credit score is less than that for a conventional mortgage. FHA loans also require you to pay for mortgage insurance.
→ VA loans. With this loan backed by the U.S. Department of Veterans Affairs (VA), active and former members of the military can receive a mortgage without having to make a down payment or carry mortgage insurance. Closing costs usually are lower with a VA loan than those with other loan types.
→ USDA loans. With this loan backed by the U.S. Department of Agriculture (USDA), borrowers with low to moderate income could purchase a home in designated rural areas without having to make a down payment.
FAQs about Wyoming’s first-time homebuyer programs
Who qualifies as a first-time homebuyer in Wyoming?
Under the definition of the FHA, a first-time homebuyer in Wyoming is someone who has not purchased and owned a principal residence over the past three years. If you owned a home with a spouse during a previous marriage, even if it was within the last three years, you could be defined as a first-time homebuyer.
Can I qualify for down payment assistance in Wyoming?
Anyone who meets all the requirements for one of Wyoming’s first-time homebuyer programs should qualify for down payment assistance.
How much of a down payment do I need to buy a house in Wyoming?
Down payment requirements vary based on the mortgage loan you want to get. There is no down payment required with a VA or USDA loan. Depending on your credit score, the down payment for an FHA loan could be as low as 3.5%.
Home price trends in Wyoming’s major areas
Wyoming home prices have been on the rise as housing inventory has declined. For example in pricey Teton County (Jackson), median home prices jumped 17.8% from the fourth quarter or 2020 to 2021, to $1,060,093. As a result, monthly mortgage payments increased to $4,064 from $3,333, according to the National Association of Realtors. Home prices in Laramie County (Cheyenne) went up by 16.6% year-over-year, to $331,377, increasing monthly mortgage payments to $1,270 from $1,053.