The state of Wyoming, in the heart of the country's Midwest region, is a paradox of sorts. While it ranks 10th in terms of total area, it is 50th when it comes to total population. According to the 2010 census the number of Wyoming residents numbered just under 564,000. To give you some perspective, New York City alone has a population 16 times larger than the entire state of Wyoming. Nonetheless, the experience of buying your first home is no different there than anywhere else in the country.
First time home buyers in Wyoming face the same financing challenges as buyers in other states. Especially in a tight economy it can be difficult to come up with the necessary down payment and closing costs, or find a mortgage with an interest rate you can afford. Fortunately, such buyers in Wyoming do have access to a small number of first time home buyer programs offering assistance. The place to start is by contacting your mortgage broker, real estate agent, or the Wyoming Community Development Authority.
Wyoming Community Development Authority (WCDA)
The Wyoming Community Development Authority is a state-run agency incorporated by the legislature to help fund affordable housing finance options to Wyoming residents. Like similar agencies in other states, the WCDA is self-funded through the sale of mortgage revenue bonds.
Mortgage revenue bonds are tax exempt as a means of attracting investors to accept a lower rate of return. Through these savings, the agency is able to pass that along to Wyoming residents in the form of low-cost mortgages and additional assistance programs. All WCDA loans are made through participating local lenders in conjunction with local developers, not-for-profit groups, and local and county government agencies.
Standard Homebuyer Program
The WCDA currently offers six assistance programs for home buyers in their state. Three of them are aimed specifically at first time home buyers. Of those three, the most commonly utilized is known as the Standard Homebuyer Program. This program is a mortgage revenue bond program designed to help moderate and low income individuals purchase their first home within Wyoming. A loan under this program is typically a 30-year mortgage with an interest rate significantly lower than the Prime Rate. Under some circumstances a second mortgage can be included to help pay for closing costs and down payment.
In order to be eligible you must meet the definition of a first time home buyer as one who has not owned a home as a principal residence within the three years prior to application. Furthermore, you must purchase the home to be occupied as your primary residence, you must meet income eligibility requirements, you must present a reasonable credit risk, you cannot use your home as a place to conduct business, and the home you choose is subject to purchase price limits on a per-county basis.
Spruce Up Wyoming Program
This program was developed in 2002 as a means of providing affordable housing while at the same time rehabilitating homes found to be in substandard condition. The agency offers a similar program for repeat home buyers, but Spruce up Wyoming is available only to first time home buyers who meet the same definition as listed above. The program provides a low-cost mortgage as well as an additional $5,000 for essential repairs. In addition, there are three options for utilizing this program depending on when the home was purchased and by whom. Details can be provided by the WCDA.
To be eligible for this program you must qualify as a first time home buyer, you must meet certain income eligibility requirements, the home you choose must meet certain rehab requirements, and you must demonstrate that major structural systems are either currently safe or are being addressed as part of the initial rehabilitation.
Down Payment Loan Program
This third program provides financial assistance to help first time home buyers with closing costs and down payment. This assistance is rendered as a secondary mortgage of up to $10,000, offered in conjunction with a loan as part of the Standard Homebuyer Program. Interest on the secondary loan is still considerably low, but it will vary depending upon the credit history of the borrower. Also dependent on the borrower is the term of the loan which can range from one month up to eight years. In either case a minimum monthly payment of $25 is required and the loan must be paid in full within the eight year limit.
You must qualify for a standard loan under another WCDA program in order to be eligible for this secondary assistance. In addition, first time home buyers are required to have a minimum credit score of 620, make a cash investment of at least $1,500 from their own savings, and not have a debt to value ratio in excess of 41%. Finally, eligible first time home buyers must complete the agency's home buyer education class and a one-on-one credit counseling session as well.
Other Home Buyer Resources
The Department of Housing and Urban Development (HUD) typically lists other programs available at the local and county levels. These programs might be made available through cities, county agencies, or nonprofit organizations. At this time, there are none listed as being available in the state of Wyoming. This is reasonable when you consider the population density of the state and the number of major cities located there. However, if you are a first time home buyer in Wyoming you would do well to check with HUD every now and again to see if any additional resources are made available.