Utah Down Payment Assistance
Utah is widely regarded as one of the best states for skiing, and nature lovers from all over enjoy its beautiful mountains. However, it also is one of the states with the highest median housing prices. This can make home ownership in Utah difficult.
Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. Such programs are offered by the Utah Housing Corporation, the Bear River Association of Governments, Neighborhood Housing Solutions, and more!
If you're thinking about purchasing a home in Utah, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!
- UHC Down Payment Assistance
- CDCU Down Payment Assistance
- West Valley City Down Payment Assistance Grant
- BRAG First Time Homebuyer Assistance
- Welcome Home: Own in Logan
- Weber Housing Authority Homeownership Assistance Program
- Own in Odgen Program
- Davis First Time Home Buyer
- Clearfield First Time Home Buyer
- City of West Jordan Down Payment Assistance Program
- Loan to Own Down Payment and Closing Cost Assistance
- Provo Home Purchase Plus Program
The Utah Housing Corporation (UHC) offers a variety of mortgage loans. These include the FirstHome Loan, the Home Again Loan, the Score Loan, and the NoMI Loan.
When a borrower utilizes one of the above loan products, they can receive a second mortgage to use as down payment assistance. The assistance amount depends on the type and amount of the loan. Borrowers can receive as much as 6% of the FirstHome Loan or HomeAgain Loan amount, as much as 4% of the Score Loan, or as much as 5% of the NoMI loan.
In order to get one of the above loans, the applicant has to contact a participating lender. A list of participating lenders is given on the UHC’s website, but as of 2020, the top lenders producing the most UHC loans are Intercap Lending Inc., Academy Mortgage Corporation, Security National Mortgage Company, Citywide Home Loans, and Veritas Funding, LLC.
For the FirstHome Loan, the applicant must be a first-time homebuyer, but the other three loans do not have this requirement.
Applicants will have to meet a minimum credit score requirement and must be planning on using their new home as their primary residence.
Other conditions may apply. Speak with your lender to see if a UHC loan is right for you!
Down Payment Assistance offered by the Community Development Corporation of Utah includes Salt Lake City, Salt Lake City Plus, Salt Lake City Community Heroes, and Salt Lake County and Taylorsville. For SLC, SLC Plus, Salt Lake County, and Taylorsville, assistance is offered as a forgivable loan.
The amount of assistance funds is as much as $14,000 for SLC, SLC Plus, and Community Heroes, and up to $10,000 for Salt Lake County and Taylorsville. Funding for these programs is limited, and therefore is awarded first-come, first-serve. Borrowers must be under-contract for a home purchase at the time of application. It can take around five days after application submission to get a result, and around 30 days for the loan to be processed.
Applicants will need to fall within specified income limits, depending on the program they choose. However, for all loans, the property being purchased must be owner-occupied. The applicant DTI cannot be higher than 45%-50% and the housing ratio cannot be higher than 35%-40%. Furthermore, borrowers must have enough funds in reserve to be able to pay for a minimum of one month of housing expenses. Any assets over $10,000 must be put towards the home purchase, and a minimum of $1,000 from the applicant’s assets (not including gift funds) must be put towards the purchase. Finally, applicants also have to complete counseling and homebuyer education.
West Valley City Down Payment Assistance Grant
The West Valley City Down Payment Assistance Grant offers a grant of $5,000 to low and moderate-income families. Because funds are limited, assistance is given first-come, first-served.
In order to qualify, an individual must be able to provide at least $2,000 from their own funds towards the home purchase. This cannot be a gift or be paid by the realtor or seller. Furthermore, the individual’s front-end housing ratio cannot be more than 31% and their DTI cannot be more than 43%. Applicant’s also have to fall within applicable income limits.
In order for a property to be eligible for this program, it must be in West Valley City, owner-occupied, and an existing single-family house, condo or town-house. All structures must have had a minimum of one occupant prior to the applicant and cannot be a new construction house.
BRAG First Time Homebuyer Assistance
The Bear River Association of Governments (BRAG) offers education and funding for first-time homebuyers. They have to be contacted directly to determine your eligibility for education, down payment assistance, and/or closing cost assistance. However, this program is only for Box Elder, Rich, and Cache Counties.
Neighborhood Housing Solutions’ Welcome Home: Own in Logan program has helped more than 200 households so far. This program is for first-time homebuyers in Logan, Utah. As much as $7,500 is offered by Neighborhood Housing Solutions in the form of two different grants.
The first grant that Welcome Home offers is a base grant of $5,000. Applicants must be able to put down $500 from their own assets (not including gift funds). This grant does not need to be repaid unless the property is sold, refinanced, or meets certain other conditions.
The second grant is for as much as $2,500 and is a matching grant, which means that Neighborhood Housing Solutions will match the payment that you put down after the first $500 for up to $2,500. As long as you remain in the house for a period of at least 10 years, this grant does not need to be repaid.
Only existing, single-family, houses are allowed. Condos, townhomes, duplexes, and new construction houses cannot be purchased using these grants.
Applicants have to obtain an eligible loan in order to utilize this program. Loans with 100% financing are not allowed, and the applicant cannot be receiving any other down payment assistance that creates a lien.
Certain income and DTI limits apply, and homebuyer education is required.
Weber Housing Authority Homeownership Assistance Program
A $5,000, 0% interest loan with deferred payments is offered to qualified households in Weber County.
The assistance funds can be used to help with either the down payment, closing costs, or for a principal reduction of the loan.
Funding is limited and available first-come, first-serve.
Prospective buyers in Ogden, Utah can obtain as much as $5,000 in assistance funds towards the down payment, closing costs, or principal reduction of a loan. This is a 0% interest loan with deferred payments that is paid back when the borrower either sells the property or no longer occupies it as their primary residence.
They must be able to put down at least $500 from their own assets.
If the applicant is a police officer, fire fighter, certified classroom teacher or administrator, they can receive up to $10,000 as their loan amount.
Those buying homes in Davis County (except for Layton and Clearfield) may receive as much as $7,500 to help with the closing costs and down payment of a home purchase. The applicant must be able to put down a minimum of 50% of the down payment. Income limits apply.
Clearfield First Time Home Buyer
Those buying a single-family detached home in the city of Clearfield can receive as much as $3,000 in the form of a grant. This can cover no more than 50% of the down payment and closing costs. Income limits apply, and the applicant must be a first-time homebuyer.
City of West Jordan Down Payment Assistance Program
This Down Payment Assistance program, for low-to-moderate income individuals and households, offers no more than half of the down payment and closing costs in the form of assistance funds, or up to $7,500 (whichever is less).
In order to be eligible, applicants must fall within specified income limits and stay in the house as their primary residence for at least five years.
The loan is forgivable after the five-year period and does not need to be repaid as long as the borrower lives in the house for those five years.
Loan to Own Down Payment and Closing Cost Assistance
Loan to Own Down Payment and Closing Cost Assistance is a 0% interest loan with deferred payment for as much as $25,000 (for credit scores between 650 and 699) or as much as $40,000 (for credit scores 700 or more). Repayment is only required once the property is either sold or no longer the borrower’s primary residence. In the event that the property is sold or no longer owner-occupied before two years has passed, the borrower will have a $5,000 fine. Applicants must be able to put at least $1,000 from their own funds towards the home purchase.
Applicants must have a qualifying mortgage, fall within specified income and debt limits, must have been working at their current place of employment for at least six months, and must be first-time homebuyers (cannot have owned a house in the previous three years).
In addition, the applicant’s middle credit score has to be higher than 650, and they cannot have any unsatisfied collections or judgements. Applicants will need to undergo homeownership counseling from an approved course. The applicant’s cash assets at closing cannot be more than $15,000.
If married, both spouses have to be on the Loan to Own loan, even if both spouses are not on the first mortgage loan. Finally, all members in the household aged 18 or older have to have a background check done.
The property in Utah can be in any city except for Eagle Mountain, Alpine, Fairfield, or Provo.
The property can be a single-family house, a condo, a townhouse, or half of a twin home, but must fall within applicable purchase price limits. The property cannot have tenants or renters either currently or for the past six months who have been or will be displaced or evicted in order for the purchase to proceed.
Required documents to apply include a finished and signed application form, the prior three years’ worth of Federal Income Tax returns, pay stubs for everyone in the household older than 18 for the previous three months, and documentation to show US citizenship and social security cards.
Provo Home Purchase Plus Program
As part of a commitment made in 2000 to revitalize and preserve the neighborhoods of Provo, Provo City, funded in part by a Congressional Economic Development Initiative, offers Home Purchase Plus. Home Purchase Plus is meant to help low-income households by offering a deferred payment loan with zero interest.
The amount that can be received depends in part on need and in part on an applicant’s credit score. Those with a middle credit score between 650 and 699 could receive as much as $25,000, while those with a middle credit score of 700 or more could receive as much as $40,000.
This loan only needs to be paid back when the borrowers no longer use the property as their primary residence. If the borrowers stop using the property as their primary residence before two years have passed after closing, they will receive a $5,000 fine.
Only first-time homebuyers (those who have not owned a house in at least 3 years) can qualify for this program. If one spouse has not owned a home but the other spouse has, both are considered first-time homebuyers if they are on the loan together.
In order to qualify, the applicants must be able to contribute at least $1,000 from their own funds towards the home purchase. In addition, applicants must be qualified for a first mortgage, fall within income limits, and have worked at their current place of employment for at least six months. Provo requires both spouses or partners to be on the loan, regardless of whether or not they are both on the first mortgage. If the applicant is single, they can only use this program for a home with two bedrooms or less. Furthermore, at the time of closing, the applicant cannot have more than $15,000 in cash assets.
All applicants must also complete approved homebuyer counseling, and all members in the household aged 18 or older must undergo a background check.
Properties being purchased using this program cannot have a price more than $426,550 (as of 2022), and can be a single-family house, town house, condo, a house with an accessory apartment, or a half of a twin house. The property cannot have tenants or renters either currently or for the past six months who have been or will be displaced or evicted in order for the purchase to proceed.
