Cheryl Knowlton:
Hi everybody. Cheryl Knowlton, CEO of Dynamite Productions here with Clay Johnson, area manager with Castle and Cooke mortgage. Okay. Again, with our hot off the press. So let’s talk more about Utah Housing.
Clay Johnson:
So much good stuff. And these are changes that needed to happen.
Cheryl Knowlton:
Yes.
Clay Johnson:
We’re really excited about this because forever, FHA, one of the things that were unique about them is you could have a non-owner occupied co-borrower. Somebody who’s not going to live in the house that co-signs with them and it didn’t affect the rate at all. And it didn’t affect the minimum down payment.
Cheryl Knowlton:
Which was crazy.
Clay Johnson:
Yes. And so that’s been a really unique thing. We’ve seen conventional loans make some huge headway that way. But one of the great things about Utah Housing and you know we’ve been talking about them this week, we love this. They’ve never really had until just recently, a true non-owner occupied co-borrower because you can have that but that non-owner occupied co-borrower had to qualify completely on their own.
Cheryl Knowlton:
Which was insane.
Clay Johnson:
Insane because it didn’t look at the aggregate, the total of income and the debts, this person has to qualify completely on their own. And it made it so it wasn’t really a true non-owner occupied co-borrower loan.
Cheryl Knowlton:
It was kind of a mess.
Clay Johnson:
It was. So, unfortunately, we had to take them and move them into different loan programs that weren’t as good as the Utah housing. So Utah Housing has recently, on some of their programs said, “You know what? We’re going to allow the non-owner occupied co-borrower just like FHA does it? Where we take the total income, the total liabilities, and we weigh that all in and see if it works.” And it’s going to open up the door for so many more people.
Cheryl Knowlton:
That’s awesome.
Clay Johnson:
We’re extremely excited about it because it helps with the down payment, it helps with closing costs and now can have that non-owner occupied co-borrower.
Cheryl Knowlton:
Incredible.
Clay Johnson:
It is.
Cheryl Knowlton:
Win, win, and win.
Clay Johnson:
Yes.
Cheryl Knowlton:
Yeah. Boom.
Cheryl Knowlton:
Awesome. So in our next segment, we are still going to talk a little bit more about Utah Housing and what makes Castle and Cooke so unique, when it comes to doing Utah Housing loans. So we’ll see you next time.
Clay Johnson:
Bye, bye.