As one of the fastest growing states in America, it’s no wonder Utah has piqued the interest of so many newcomers. Kindly referred to as the Beehive State, this region is buzzing with industry, entertainment, and opportunities.
While its thriving economy and business developments make Utah appealing to young professionals, the state’s natural landscapes and outdoor recreational activities also make it the ideal place for families and adventure enthusiasts. Whether you are hiking solo through the mountains or camping with your family at Bryce Canyon National Park, it’s easy to find clear, open skies for stargazing.
With a median resident age of 31 years, Utah is a magnet for younger generations. For those starting out as first-time homebuyers, the process can be a bit confusing. If you find your dream home in Utah to be just out of reach, there are financial assistance programs to help new borrowers just like you.
Financial assistance programs are offered at the federal, state, and local level as low-interest loans, grants to close the gap between the required amount of money down and your budget. Here’s a list of financial assistance programs for first-time homebuyers in Utah to get you started.
Who Qualifies as a First-Time Homebuyer in Utah?
In Utah, a first-time homebuyer is any individual who has not owned a primary residence during the previous three years. In some cases, qualified veterans may be considered eligible for first-time buyer programs. When researching each program, follow the website link to read additional eligibility guidelines.
Statewide First-Time Buyer Programs
The following programs are available statewide to Utah residents.
The Utah Housing Corporation (UHC) offers several mortgage programs for new homebuyers. The FirstHome Loan, specifically for first-time buyers, offers the lowest UHC interest rate for eligible borrowers. Credit score requirements and income limits apply. Additionally, qualified borrowers may obtain a second mortgage of up to 6 percent of the FirstHome Loan to put towards down payment and closing costs. The second mortgage is a 30-year fixed rate loan with an interest rate 2 percent higher than the interest rate of the first mortgage. See website for more information and to apply.
The Utah Veterans Grant assists members of the military who are first-time homebuyers. The Utah Department of Veterans and Military Affairs (UDVMA) issues validation to veterans seeking the Utah Veterans First-time Homebuyer Grant. This $2,500 grant may be put towards expenses related to the purchase of your new home, such as down payment and closing costs. Grant funds are limited so be sure to check the website for current information and deadlines.
Statewide Non First-Time Buyer Programs
While the above programs are strictly available for first-time homebuyers, there are other statewide programs to assist individuals looking to move from one home they have owned into another.
UHC Down Payment Assistance Second Mortgage
The Utah Housing Corporation offers down payment and closing cost assistance to eligible first-time and repeat borrowers through the UHC Down Payment Assistance Second Mortgage. To be eligible, the borrower must already qualify for a first mortgage through UHC (HomeFirst, HomeAgain, or Score). Loan amounts may be up to a specified percentage of the first mortgage. See website for more information and to contact a participating lender.
For eligible first-time and repeat buyers, UHC offers the HomeAgain Loan. This loan is subject to credit and income requirements. The interest rate is competitive but slightly higher than the FirstHome Loan. Eligible borrowers may also obtain a second mortgage of up to 6 percent of the first loan to put towards down payment and closing costs. For more information, visit the UHC website.
For both first-time and repeat homebuyers who have a history of credit challenges, the UHC offers the Score Loan. This loan is available for a lower credit requirement. It offers an interest rate slightly higher than the HomeAgain Loan and the opportunity to obtain a second mortgage of up to 4 percent of the first loan to put towards down payment and closing costs. Other eligibility requirements apply, so be sure to visit the website for details.
NoMI Mortgage Program
The UHC NoMI Program has the highest credit requirement of the UHC loan programs, but typically offers the lowest mortgage payment since their loans do not require mortgage insurance. Borrowers are subject to eligibility requirements including income limits. Qualified borrowers may also obtain a second mortgage through UHC for up to 5 percent of the NoMI Loan to put towards down payment and closing costs. See website for details and information on how to apply.
Homebuyer Programs by Location
In addition to statewide programs, there may also be homebuyer assistance programs based in different cities and regions of a state. The programs below are additional local opportunities for homebuyers in Utah.
First-time homebuyers looking to settle down in Clearfield City may be eligible for up to $5,000 in down payment and closing cost assistance through the Clearfield City’s Down Payment Assistance Program (CCDP) program. Funding is restricted to first-time homebuyers in single-family detached homes who meet income requirements based on household size. See website to learn more.
Buyers purchasing within Davis County, excluding the cities of Layton and Clearfield, may be eligible for up to $7,500 towards down payment and closing cost assistance through the Davis First Time Home Buyer program. Eligible borrowers are subject to income limits and other requirements. This program is specifically for first-time homebuyers only. See website for more information and to apply.
The At Home in Layton program offers income-eligible first-time homebuyers a boost with up to $7,500 to put towards down payment, closing costs, or principal reduction. Qualifying applicants must meet credit, income and other eligibility requirements and the property must be in Layton City. Funds are provided in the form of a grant. If the home is sold before the end of the fifth year from closing date, the grant must be repaid to the City. See website for more information and to apply.
Residents of the City of Ogden may be eligible for the Own in Ogden Program. This program offers a zero-interest, deferred-payment loan of up to a $5,000 to put towards down payment, closing costs, or principal reduction on the first mortgage loan balance. Ogden City police officers, firefighters and full-time, state-certified K-12 classroom teachers or school administrators in Ogden City may be eligible to receive a $10,000 loan when purchasing their home within city limits. Funding is available on a first-come, first-serve basis. Credit, income, and other requirements may apply. Visit the website for details.
For residents of Provo, the Provo City Housing Division offers the Home Purchase Plus Program. This program assists low-income households with down payment and closing costs through a zero-interest, deferred-payment loan. Purchase price limits and credit requirements apply. Be sure to visit the website for more information and to apply.
Salt Lake City Area
The Community Development Corporation of Utah (CDCU) offers a Down Payment Assistance (DPA) program to assist low to moderate-income households in covering the required down payment and closing costs on their home purchase in Salt Lake City, Salt Lake County, and Taylorsville. CDCU offers DPA in the form of deferred loans without interest that are forgivable over time. Residents of Salt Lake City may be eligible for up to $14,000 and residents of Salt Lake County and Taylorsville may be eligible for up to $10,000 to put towards down payment and closing costs. Other eligibility requirements apply and funds are limited. Be sure to check out the website for details on how to apply.
The Tooele County Housing Authority (TCHA) offers the Tooele Down Payment Assistance Program for qualified first-time homebuyers, displaced homemakers and single parents. The program provides up to $3,000 in down payment and closing cost assistance to income-eligible applicants who are looking to reside in Tooele County. Other requirements may apply, so be sure to visit the website for more information.
The Loan To Own program in Utah County offers zero-interest, deferred-payment loans for low to moderate-income borrowers when purchasing their first home. All cities are eligible with the exception of Eagle Mountain, Alpine, Fairfield and Provo. No payment is due as long as the owner resides in the home as a primary residence. Repayment is due upon sale or when the property is no longer owner occupied. There is a penalty for if the owner chooses to sell or vacate the property within two years of closing. Income limits and credit requirements apply, so be sure to check out the website for additional details.
The Weber County Homeownership Assistance Program offers moderate-income households the opportunity to apply for $5,000 to put towards down payment, closing costs, or principal reduction on their first mortgage loan balance. The assistance is offered in the form of a zero-interest, deferred payment loan. Residents of Weber County must meet income, credit, and other requirements to qualify. See website for details and how to apply.
In the City of West Jordan, first-time homebuyers with low to moderate-income may be eligible for the City of Jordan Down Payment Assistance Program. Income-eligible borrowers may receive $7,500 in the form of a forgivable loan to put towards down payment and closing costs. The loan may be forgiven after five years if requirements are met. See website for more details and to complete the application.
West Valley City
First-time homebuyers in West Valley City may be eligible for a $7,500 government grant through the West Valley City Down Payment Assistance program. Eligible borrowers must meet credit and income requirements. Funding is available on a first-come, first-serve basis for low to moderate-income households and may be put towards down payment and closing cost assistance. The grant does not need to be repaid as long as the homeowner resides in the home for a minimum of five years and does not sell, transfer, or refinance the home. See website for details on qualification.
Purchase Your Dream Home
Utah is known for its bustling industry, gorgeous scenery, and strong sense of community. In the friendliest state, you know that there will always be a helping hand and plenty of resources to get you started. These programs will set you on your path to purchasing your new home, so you’ll be stargazing in the Beehive State before you know it.
The links on this site were researched by NewHomeSource. This is as cohesive a list as possible. Individual homebuyers should contact entities to fully understand requirements and processes.