25 Utah First Time Home Buyer Grants & Programs in 2024

Many Utahns dream of owning their own homes but believe they can’t afford to buy. However, there are many local, state, and federal programs designed to help first-time homebuyers realize their dreams of homeownership. Here is a guide with 26 state, local, and federal programs designed for first-time homebuyers compiled by the mortgage experts at City Creek Mortgage.

Utah State First-Time Homebuyers Programs/Grants

Utah Housing Corporation First-Time Homebuyers Assistance Program

Utah Senate Bill 240 was passed by the legislature and signed into law by Gov. Spencer Cox on March 23, 2023. This law created the First-Time Homebuyers Assistance Program, which is administered by the Utah Housing Corporation and provides first-time homebuyers with up to $20,000 in funds they can borrow to purchase a newly constructed, never-inhabited home in Utah. These funds can be combined with a Utah down payment assistance second mortgage.

Here is some key information about this program:

• Program name – First-Time Homebuyers Assistance Program
• Administering organization – Utah Housing Corporation
• Who qualifies – This program is limited to the first 2,400 first-time homebuyers who have not owned homes within the past three years, displaced homemakers, and single parents purchasing newly constructed homes in Utah. Buyers must have been Utah residents for a minimum of 12 months before purchasing the home.
• Restrictions on qualifying – Limited to the first 2,400 applicants. Must be purchasing a newly constructed, previously uninhabited home for up to a maximum purchase price of $450,000. Homebuyers must go through a Utah Housing participating lender to qualify for funding.
• How to apply – A funding reservation request must be submitted to the Utah Housing Corporation through the participating lender on Form 602. The participating lender will first qualify the homebuyer for a Utah Housing mortgage, complete the funding reservation request, and submit accompanying documents to UHC.  There are a limited number of grants available.
• Program contact information/learn more – Call UHC: 801-902-8100; Address: Utah Housing Corporation, 2479 South Lake Park Blvd | West Valley City, Utah 84120
• WARNING: WE DO NOT RECOMMEND THE UTAH HOUSING CORPORATION FIRST TIME HOME BUYER ASSISTANCE PROGRAM. Here’s Why: Whenever you sell or refinance your mortgage, you will have to pay the $20k back (either the full $20k or half of the equity in your home, whichever is less). So it is more of a loan, than it is a grant. You can see more details in their guide here.

Utah Housing Corporation Down Payment Assistance Program

While the UHC Down Payment Assistance Program is not limited to first-time homebuyers, it can be used by first-time homebuyers to qualify to purchase homes with little to no money down in Utah. The Down Payment Assistance Program through the Utah Housing Corporation acts as a second mortgage and allows borrowers to finance their down payment and closing costs.

Here is some key information about this program:

• Program name – Down Payment Assistance Program
• Administering organization – Utah Housing Corporation
• Who qualifies – Homebuyers can qualify if they have not been able to save up enough money for a down payment or closing costs and who participate in one of UHC’s qualifying home loan programs. Homebuyers must have a minimum credit score of 620. The down payment assistance is a second mortgage of up to 6% of the amount of the first mortgage with an interest rate of 1% higher than that of the first mortgage.
• Restrictions on qualifying – Borrowers must be financing their homes through one of UHC’s qualifying mortgage programs, including the FirstHome program for first-time homebuyers with credit scores of at least 660, FHA or VA loans for borrowers with minimum credit scores of at least 620, or conventional HFA Advantage loans for borrowers with minimum credit scores of at least 700.
• How to apply – To apply for down payment assistance through the Utah Housing Corporation, you must first qualify for a UHC mortgage loan through a participating lender. Tell your lender you want to get a UHC mortgage and would like to apply for down payment assistance. The lender will submit your application for assistance once you qualify for a UHC mortgage loan. There are a limited number of grants available.
• Program contact information/learn more – Call UHC: 801-902-8100; Address: Utah Housing Corporation, 2479 South Lake Park Blvd | West Valley City, Utah 84120

Utah Housing Corporation Utah Veterans Grant Program

The Utah Veterans Grant program is available through the Utah Housing Corporation and provides grants of up to $2,500 that do not have to be repaid. The funds can be used in connection with purchasing a single-family home for first-time homebuyers to pay closing costs or down payments.

• Program name – Utah Veterans Grant Program
• Administering organization – Utah Housing Corporation
• Who qualifies – Current military service members, veterans who have separated within the past five years, and veterans who are eligible through the Utah Department of Veterans and Military Affairs (UDVMA) qualify if they are first-time home buyers who haven’t owned homes in Utah in the past seven years or who are veterans moving to Utah to buy a home from out of state.
• Restrictions on qualifying – This grant is limited to qualifying veterans or military service members who have not owned a home in Utah in the past seven years or who are relocating to Utah from out of state. The buyers must be approved for VA, FHA, or conventional mortgage loans through the Utah Housing Corporation and a participating lender or a conforming mortgage through any lender licensed in Utah.
• How to apply – To apply, you must first pre-qualify through a participating lender and then obtain a grant status eligibility certificate from the UVDMA. The request for grant funds must be submitted and processed by an approved lender.  There are a limited number of grants available.
• Program contact information/learn more – Call UHC at 801-902-8200 or email at grantprograms@uthc.org. Address: Utah Housing Corporation, 2479 South Lake Park Blvd | West Valley City, Utah 84120

Utah Housing Corporation Utah First-Time Homebuyer Law Enforcement Officer Grant Program

The Utah First-Time Homebuyer Law Enforcement Officer Grant Program is available to qualifying law enforcement officers through participating lenders and the Utah Housing Corporation. This program provides forgivable grants of up to 3.5% of the purchase price or $25,000, whichever is lower. The grants can be forgiven on a pro-rata basis over the first five years of homeownership and are intended to incentivize people to go into law enforcement careers.

• Program name – Utah First-Time Homebuyer Law Enforcement Officer Grant Program
• Administering organization – Utah Housing Corporation
• Who qualifies – First-time homebuyers and qualifying single parents who meet the definition of a law enforcement officer as defined in Utah Code Sections 53-13-103 or 53-13-104 who have not owned a home in Utah in the previous three years may qualify.
• Restrictions on qualifying – Grant funds are available to the first approximately 320 qualifying law enforcement officers. The grants are limited to qualifying law enforcement officers whose first mortgage is a Utah Housing First Home, FHA/VA, or Freddie Mac HFA Advantage through the Utah Housing Corporation and a participating lender. The officer must occupy the home as an owner-occupied home for the first five years.
• How to apply – Homebuyers must first qualify for a Utah Housing mortgage loan as the first mortgage through a participating lender. The participating lender must then submit a request to reserve grant funds to the UHC. The UHC will wire funds to the title company within three days of closing. There are a limited number of grants available.
• Program contact information/learn more – Call UHC at 801-902-8200 or email at grantprograms@uthc.org. Address: Utah Housing Corporation, 2479 South Lake Park Blvd | West Valley City, Utah 84120

Utah FirstHome Mortgage Loan

The FirstHome Mortgage Loan Program through the Utah Housing Corporation and approved lenders provides qualifying first-time homebuyers with credit scores of 660 or higher to obtain a lower-interest mortgage and potentially qualify for down payment assistance. Eligible borrowers will typically receive the lowest interest rate available on UHC home loans.

• Program name – FirstHome Mortgage Loan Program
• Administering organization – Utah Housing Corporation
• Who qualifies – First-time homebuyers who have not owned a home in Utah for the previous three years with exceptions available for veterans and qualifying single parents may qualify. Homebuyers must have a minimum qualifying credit score of 660.
• Restrictions on qualifying – To obtain a FirstHome Mortgage loan, borrowers must not have owned a home in Utah in the previous three years or meet a veteran or single-parent exception and meet the income and purchase limits set by the Utah Housing Corporation for family size and county.
• How to apply – To apply for a FirstHome mortgage loan, you must go through a UHC-approved lender. Tell them you want to apply for a FirstHome mortgage loan and submit the required documents.
• Program contact information/learn more – Call UHC at 801-902-8200 or email at mortgage@uthc.org. Address: Utah Housing Corporation, 2479 South Lake Park Blvd | West Valley City, Utah 84120

County and Local Resources for First-Time Homebuyers in Utah

Community Development Corporation of Utah Down Payment Assistance

The Community Development Corporation of Utah (CDCU) has offered a down payment assistance program for qualifying homebuyers in Utah County, Salt Lake City, and Taylorsville when funds are available. The agency did not receive funding for its down payment assistance program for fiscal year 2023 from July 2023 through June 2024. However, first-time homebuyers who plan to purchase a home in July 2024 or later might want to keep this program in mind. When funds are available, down payment assistance is offered as a deferred, no-payment, zero-interest loan that is forgivable after a specific time.

• Program name – CDCU Down Payment Assistance
• Administering organization – Community Development Corporation of Utah
• Who qualifies – First-time homebuyers with low to moderate incomes in eligible areas might qualify when funds are available.
• Restrictions on qualifying – CDCU DPA funds are available in very limited areas of Salt Lake County, Salt Lake City, and Taylorsville. In Salt Lake County, funds can only be used to cover 50% of the down payment with some additional funding for closing costs. In Salt Lake City and Taylorsville, the homes must be located within the municipal boundaries. First-time homebuyers must have incomes at or below 80% of the area median income at the time of applying with maximum DTIs of 45% to 50%. Borrowers must have cash reserves equal to at least one month’s worth of housing costs. Finally, borrowers must commit at least $1,000 in personal funds toward purchasing their home and complete a homebuyer education course.
• How to apply – When funds are available, you can apply by following the link on the CDCU’s website in the upper right-hand box.
• Program contact information/learn more – Completed applications should be submitted to the CDCU by email at dpa@cdcutah.org or fax at 801-994-7220 Attn: DPA Dept. You can also send a completed application to the CDCU by mailing it to the following address: DDCU, 501 E. 1700 S., Salt Lake City, UT 84015. You can contact the CDCU for more information at 801)-994-7222.

BRAG First-Time Homebuyer Program (Box Elder, Cache, and Rich Counties)

The Bear River Associated Governments (BRAG) offers a first-time homebuyer program for people purchasing homes in Box Elder, Cache, and Rich Counties. This program offers up to $3,000 in down payment or closing cost assistance through a deferred, no-interest loan.

• Program name – BRAG First-Time Home Buyer Program
• Administering organization – Bear River Associated Governments
• Who qualifies – First-time homebuyers in Box Elder, Rich, or Cache Counties who meet the HUD income limits
• Restrictions on qualifying – Individuals must purchase their first homes in Box Elder, Rich, or Chace County and must meet the HUD income limits by having a qualifying income that is 80% of the area median income. Buyers must complete a homebuying counseling course through Utah State University to qualify.
• How to apply – To apply, you should first register for the free homebuyer counseling course through USU by calling 435-797-7224 and choosing a date to attend. Once you have completed the counseling course, you can then apply for the First-Time Home Buyer Program. You must then get pre-qualified for a mortgage and then submit income verification documents, a signed BRAG application form, a BRAG tracking form, a copy of the mortgage application, a copy of the earnest money agreement, and a photo and verification of the home’s age. Send the documents to BRAG.
• Program contact information/learn more – Call BRAG at 435-752-7242 or email jeffk@brag.utah.gov. Address: Bear River Association of Governments, Jeff, 170 North Main, Logan, Utah 84321.

Welcome Home: Own in Logan (Logan, UT)

The Welcome Home: Own in Logan program is available to first-time homebuyers who are purchasing homes within the Logan City limits. It provides up to $7,500 in down payment and/or closing costs assistance comprised of a $5,000 base grant plus an additional $2,500 matching funds grant. The base grant is a second lien that must be repaid if you sell your home, refinance it, or obtain a second mortgage. The matching grant will be forgiven if you live in your home for 10 years.

• Program name – Welcome Home: Own in Logan
• Administering organization – Neighborhood Nonprofit Housing Corporation (NNHC)
• Who qualifies – First-time homebuyers purchasing homes in Logan with fixed-rate mortgages. Homebuyers must have incomes of 80% or less than the area median income for Cache County based on household size. The debt-to-income ratio can’t exceed 41%.
• Restrictions on qualifying – First-time homebuyers must put down at least $500 to qualify for the base grant of $5,000 The additional matching grant is available to match additional downpayment funds you put down up to $2,500. The funds can only be used for the purchase of single-family, existing homes. Condominiums, duplexes, townhomes, and newly constructed homes do not qualify. Buyers must complete a HUD-approved homebuyer education course to qualify.
• How to apply – To apply, begin by reviewing the participant checklist. Then, fill out the application form and consent form with the required documents. Finally, call (435) 753-1112 to receive an email address where you can send your application documents.
• Program contact information/learn more – Call the Neighborhood Nonprofit Housing Corporation at (435) 753-1112. Address: Neighborhood Nonprofit Housing Corporation, 195 West Golf Course Road, Logan, UT 84321

Own in Ogden (Ogden, Utah only)

Own in Ogden is available to all homebuyers, including first-time homebuyers. This program can be used for downpayment assistance, closing costs, or to reduce the principal on the buyer’s first mortgage loan. Homebuyers must meet maximum income limits that are adjusted annually based on household size. The funds are available to purchase newly constructed homes up to $435,000 or existing homes with sales prices up to $428,500.

For homebuyers in general, the program provides up to $10,000 in loans. K-12 teachers can obtain $15,000 in loans, while City of Ogden employees can receive loans of $15000. Ogden City firefighters and police officers are eligible for up to $20,000. The funds can be combined with other downpayment assistance programs.

• Program name – Own in Ogden
• Administering organization – City of Ogden, Utah
• Who qualifies – Homebuyers looking to purchase newly constructed or existing homes in Ogden with sales prices of a maximum of $432,000 or $428,000, respectively. Buyers must meet the income guidelines and put down a minimum of $500 of their own funds.
• Restrictions on qualifying – Buyers must meet the income guidelines and have incomes of less than 80% of the area median income. The home must be located within the Ogden City limits, and buyers must also put down $500 of their own funds.
• How to apply – Homebuyers can print out the application packet. The homebuyers and their lender must fill out, sign, and notarize the various documents contained in the packet and then scan everything in and submit the documents through the program’s secure documents upload link.
• Program contact information/learn more – Call the Ogden City Government at 801-629-8000 and ask for information about the Own in Ogden program. Address: City of Ogden, 2549 Washington Blvd, Ogden, UT 84401.

At Home in Layton (Layton, Utah)

The At Home in Layton program is available through the Layton Community Development Block Grant Program and the City of Layton. It provides up to $10,000 in downpayment or closing cost assistance or principal mortgage reduction for up to 50% of the required down payment. The funds are available as a second lien. It is a forgivable grant if the homeowner remains in the home for at least five years but must be repaid if the home is sold or refinanced within five years.

• Program name – At Home in Layton
• Administering organization – City of Layton
• Who qualifies – Homebuyers wishing to purchase homes within the Layton city limits who meet the income eligibility requirements are eligible.
• Restrictions on qualifying – Qualifying homebuyers must have incomes not exceeding 80% of the area median income for Davis County.
• How to apply – Fill out the application and submit it with a pre-approval letter from a lender, copies of each taxpayer’s most recent income tax return, most recent two months of pay stubs for each working household member, and a copy of a signed purchase contract. Applications can be submitted in person, by email, or by mail. Available the funds run out, or until June 30th, 2024.
• Program contact information/learn more – Call the Layton City CDBG Administrator at 801-336-3770 or email mcloward@laytoncity.org. Address: Layton City
  Attention: CDBG Administrator, 437 North Wasatch Drive, Layton City, UT 84041.

Davis County Homeownership Assistance

The Davis County Homeownership Assistance Program launched on Oct. 16, 2023, and is offered through Davis County. This program offers grants of up to $50,000 to first-time homebuyers who would otherwise not be able to afford to purchase homes in the county. The funds do not have to be repaid and do not accumulate interest as long as the buyer remains in the home. They must be repaid at an interest rate of 1% to Davis County if the buyer sells the home or refinances their mortgage for an ineligible reason.

• Program name – Davis County Homeownership Assistance
• Administering organization – Davis County
• Who qualifies – Homebuyers who have incomes not exceeding 80% of the AMI for Davis County and who would otherwise not be able to afford to buy homes in the county.
• Restrictions on qualifying – Homebuyers cannot have incomes greater than 80% of the AMI for their family size. The buyer’s DTI can’t exceed 50%, and the buyer must contribute $1,000 and have a one-month cash reserve for housing costs. The home must be the buyer’s principal residence during the entire duration.
• How to apply – Applicants can apply through the Davis County Neighborly applicant portal. Applicants must have a fully executed (signed) purchase contract at the time they apply.
• Program contact information/learn more – Call Davis County Comunity and Economic Development at 801-451-3495. Address: Davis County Community and Economic Development, 61 S. Main Street, Suite 304, Farmington, UT 84025.

Neighbor Works Down Payment Assistance

The Neighbor Works Down Payment Assistance Program is available through Neighbor Works Salt Lake for first-time homebuyers looking to purchase homes in Salt Lake City or Murray. Borrowers in Salt Lake City might be eligible for up to $40,000 in down payment assistance through a forgivable, no-interest loan for five years. Those in Murray might be eligible for up to $85,000 in down payment assistance through a forgivable, no-interest loan for five years.

• Program name – Neighbor Works Down Payment Assistance Program
• Administering organization – Neighbor Works Salt Lake
• Who qualifies – Homebuyers wanting to purchase in Salt Lake City must have incomes not exceeding 80% of the AMI. Those wanting to purchase in Murray must have incomes not exceeding 120% of the AMI.
• Restrictions on qualifying – This program is limited to first-time homebuyers meeting the income requirements for Salt Lake City (80% AMI maximum) or Murray (120% AMI maximum). The downpayment assistance can only be used to purchase owner-occupied single-family homes or condos. Homebuyers must complete an online homebuyer education course through eHome America.
• How to apply – Applicants must complete the homebuyer education course through eHome America. The intake form and application must be completed and submitted online and go through an approved lender.
• Program contact information/learn more – Call Neighbor Works at 801-539-1590. Salt Lake City Address: NeighborWorks® Salt Lake SALT LAKE OFFICE, 622 West 500 North, Salt Lake City, UT 84116. Murray Office: NeighborWorks® Salt Lake
  MURRAY OFFICE, 4843 S Poplar Street, Murray, UT 84107.

West Valley Down Payment Assistance Program (West Valley, UT)

West Valley City offers a down payment assistance program through its partnership with the CBC Mortgage Agency called the Chenoa Fund. This program provides down payment assistance of 3.5% of the sales price or 5% of the home appraisal amount, whichever is lower. It is meant to help otherwise qualified buyers purchase homes by paying for the minimum down required by the Federal Housing Administration (FHA) for FHA loans.

• Program name: Chenoa Fund Downpayment Assistance
• Administering organization: West Valley City/CBC Mortgage Agency
• Who qualifies: First-time homebuyers with a minimum credit score of 600.
• Restrictions on qualifying: Must have a minimum credit score of 600 and go through an approved lender.
• How to apply: Applicants are instructed to send an email to info@chenoafund.org to receive a list of approved lenders. Applicants submit applications through their lenders.
• Program contact information/learn more: Call 801-963-3369 or email info@chenoafund.org. Address: West Valley City Grants and Contracts Division, 4522 W 3500 S, West Valley City, UT 84120

West Jordan City Down Payment Assistance (West Jordan, UT)

The City of West Jordan offers a down payment assistance program for prospective homebuyers with low to moderate incomes who wish to purchase homes within the city limits. The program offers up to $7,500 in down payment and closing costs assistance for half of the required down payment and/or closing costs in a forgivable loan. If the buyers live in their homes for five years, the loan will be forgiven, and they will not have to repay the loan.

• Program name: West Jordan City Down Payment Assistance
• Administering organization: West Jordan City, UT
• Who qualifies: Prospective buyers who have not owned a home within the past 24 months, wish to purchase homes in West Jordan City, and meet the income guidelines qualify for this program.
• Restrictions on qualifying: The homebuyer must provide $2,500 of their own funds for the home purchase, and this money can’t come from gifts or be paid by anyone other than the homebuyer. The buyer must meet income guidelines for the program for their family size. The buyer’s total DTI ratio can’t be more than 45%.
• How to apply: Prospective buyers can download and print the applicant checklist and application form. They should gather the documents listed in the checklist and complete the application form. Original signatures are required. The application, signed copy of the real estate contract, and supporting documents should then be submitted to West Jordan Community Development.
• Program contact information/learn more> Call West Jordan Community Development at 801-569-5060 or email Julie.Davis@WestJordan.utah.gov for more information. Address: West Jordan Public Works – Temporary Location, 7960 S. 4000 W, West Jordan, UT 84088

South Jordan Housing Downpayment Assistance Program (South Jordan, UT)

The City of South Jordan offers a generous downpayment assistance program for individuals wanting to buy homes in South Jordan who have low to moderate incomes. The assistance provides 7.5% of the home’s purchase price or $20,000, whichever is lower. The funds are provided as a forgivable loan with no payments or interest while the homeowner lives in the home. If the homeowner remains in the home for 10 years, the loan will be forgiven and converted to a grant.

• Program name – South Jordan Housing Downpayment Assistance Program
• Administering organization – South Jordan Redevelopment Agency
• Who qualifies – Buyers who have low to moderate incomes, wish to purchase homes within the South Jordan city limits, and would otherwise not be able to afford to buy homes.
• Restrictions on qualifying – Buyers must meet the program’s income guidelines and you must remain in the home for 10 years to avoid having to repay the assistance amount. If they sell before 10 years, they will have to repay a prorated amount based on the time they have remained in the home. If they rent the home out or sell it within the first two years, they will have to repay the loan and pay an additional $5,000 penalty. Buyers must contribute $1,000 of their own funds toward the purchase and can’t have more than $15,000 in liquid assets after closing. Buyers must attend a homeownership class and submit the certificate with their application materials or a receipt showing the course has begun.
• How to apply – Buyers meeting the city’s income guidelines for the program can download the application from the city’s website and print it out. They should gather all of the required documentation listed in the application and submit copies of the documents together with the application to the South Jordan Redevelopment Agency.
• Program contact information/learn more – For more information, call the City of South Jordan at 801-446-HELP. Address: City of South Jordan,1600 W Towne Center Drive, South Jordan, UT 84095.

Loan to Own (Most Utah Counties and Cities)

The Loan to Own Program provides assistance to people buying homes in all counties and most cities in Utah, excluding Eagle Mountain, Fairfield, Woodland Hills, Highland, and Provo. Applicants might be eligible for the minimum down payment required by the type of mortgage they get (3.5% for FHA/5% for conventional), estimated closing costs, and another 5% or 3.5% up to a maximum of $40,000. Homebuyers must contribute $1,000 of their own funds towards the transaction. The funds are provided as a zero-interest, deferred loan. As long as the buyer remains in the home, they will not have to make payments. The loan will be repaid when the buyer sells the home. If they sell within two years, they will have to pay a $5,000 penalty.

• Program name – Loan to Own
• Administering organization – Provo Development Services
• Who qualifies – First-time homebuyers who have not owned a home in the last three years qualify as long as they have a minimum credit score of 650 or above and meet the income guidelines.
• Restrictions on qualifying – Homebuyers must have a credit score above 650, contribute $1,000 of their own money towards the transaction, meet the income guidelines, and have liquid assets of no more than $15,000 after closing. Buyers must complete a pre-home ownership counseling course through Community Action or NeighborWorks Provo. The following online course is also accepted: https://extension.learn.usu.edu/browse/home-buyer/courses/home-buyer-education-2022.
• How to apply – Buyers can register and then scroll down to find the Loan to Own program under downpayment assistance on the Neighborly Provo portal. They can complete and submit the application online.
• Program contact information/learn more – For more information, call Provo Development Services at (801) 852-6400. Address: Development Services, 445 W Center St Suite 200, Provo, UT 84601.

Home Purchase Plus (Provo, UT)

For first-time homebuyers who want to purchase homes in Provo and are thus not eligible for the Loan to Own Program, Provo Development Services offers the Home Purchase Plus program. This program offers a zero-interest, deferred loan to buyers in Provo for the minimum down payment required by the type of mortgage they get (3.5% for FHA/5% for conventional), estimated closing costs, and another 5% or 3.5% up to a maximum of $40,000. Buyers do not have to repay the loan as long as they remain in the home. They will have to repay it at the time they sell the home. If they vacate the home or sell it within the first two years, they will also have to pay a $5,000 penalty.

• Program name – Provo Home Purchase Plus
• Administering organization – Provo Development Services
• Who qualifies – Buyers must qualify for a mortgage and meet the program’s income requirements. They must also have a credit score above 650.
• Restrictions on qualifying – Single homebuyers can only purchase a maximum two-bedroom home. Applicants must contribute $1,000 of their own funds to the transaction and not have liquid assets of more than $15,000 after closing. The home’s purchase price cannot exceed current HUD guidelines. Buyers must complete a pre-homeownership course through Community Action or NeighborWorks Provo. They can also complete the following online course: https://extension.learn.usu.edu/browse/home-buyer/courses/home-buyer-education-2022.
• How to apply – Buyers can register and then scroll down to find the Loan to Own program under downpayment assistance on the Neighborly Provo portal. They can complete and submit the application online.
• Program contact information/learn more – For more information, call Provo Development Services at (801) 852-6400. Address: Development Services, 445 W Center St Suite 200, Provo, UT 84601.

Federal Resources for First-Time Homebuyers

Multiple government programs exist to help prospective homebuyers purchase homes even when they have minimal cash available to make a down payment or have lower credit scores. Programs are available as government-backed loans through the Federal Housing Administration, the U.S. Department of Veterans Affairs, and the U.S. Department of Agriculture. There are also specialized mortgage products available through Fannie Mae and Freddie Mac. An overview of these various programs is provided below.

Federal Housing Administration (FHA) Loans

The Federal Housing Administration (FHA) is a division of the U.S. Department of Housing and Urban Development (HUD) that insures mortgages for homebuyers who have more modest credit scores and might not be eligible for conventional mortgages. Buyers can go through approved FHA lenders, and the mortgages are considered to be lower risk since they are guaranteed by the FHA. These loans have a down payment requirement of 3.5%, have competitive interest rates, and are available to people who have credit scores of 580 and above. People with credit scores of 500 to 579 might be able to qualify for FHA-backed mortgages if they can put down 10%. Borrowers can also use gift money to make their down payments.

While the down payment requirements are lower, buyers who pay less than 10% down will need to pay an upfront fee of 1.75% and annual mortgage insurance premiums for the life of the loan. Those who can put down 10% will be able to remove the mortgage insurance after 11 years.

• Program name – FHA-backed mortgages
• Administering organization – Federal Housing Administration
• Who qualifies – Borrowers with credit scores of at least 580 (500 with 10% down), debt-to-income ratios of a maximum of 45% to 50%, and the ability to put down at least 3.5% through their own funds, gifts, or downpayment assistance programs
• Restrictions on qualifying – Homebuyers must purchase homes to live in as their principal residences, and the homes must have a maximum of one to four units with one unit being owner-occupied. Buyers must go through an FHA-participating lender.
• How to apply – Homebuyers can apply through any participating lender who provides FHA mortgages.
• Program contact information/learn more – Call 202-708-1112 for more information. Federal Address: U.S. Department of Housing and Urban Development, 451 7th Street, S.W., Washington, DC 20410. Utah Field Office Address: Salt Lake City Field Office, 125 South State Street, Suite 3001, Salt Lake City, UT 84138.

HUD Good Neighbor Next Door Program

The HUD Good Neighbor Next Door Program is a mortgage program available for teachers, emergency medical technicians, firefighters, and police officers to help them qualify for FHA-backed mortgages where they work. If they buy homes in a designated revitalization area, they can receive a 50% discount on their purchase price. Buyers must remain in their homes for a minimum of three years.

• Program name – HUD Good Neighbor Next Door Program
• Administering organization – FHA/HUD
• Who qualifies – EMTs, firefighters, police officers, and K-12 teachers
• Restrictions on qualifying – Buyers must select homes from a list of HUD-approved homes in Utah. To get the 50% discount, they will need to choose a home in a revitalization area designated by HUD and sign a second mortgage for the discounted amount. If they remain in their homes for three years, the second mortgage will be eliminated, and they won’t have to pay it.
• How to apply – Eligible buyers can apply through HUD-approved lenders and tell them they want to go through the Good Neighbor Next Door program. The lender will help them view eligible properties in revitalization areas and complete the required application and paperwork. The qualifying properties are limited, and the listings change weekly.
• Program contact information/learn more – Call 202-708-1112 for more information. Federal Address: U.S. Department of Housing and Urban Development, 451 7th Street, S.W., Washington, DC 20410. Utah Field Office Address: Salt Lake City Field Office, 125 South State Street, Suite 3001, Salt Lake City, UT 84138.

Department of Veterans Affairs (VA) Loans

Current military service members, veterans of the U.S. Armed Forces, and surviving spouses might be eligible for VA-backed loans. These are insured by the U.S. Department of Veterans Affairs, reducing the risk faced by lenders. Eligible buyers can use these mortgages to buy or build homes, and these mortgages typically do not require down payments. However, they will have to pay a one-time funding fee that they can roll into their mortgage.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

• Program name – VA-backed mortgages
• Administering organization – U.S. Department of Veterans Affairs
• Who qualifies – Current military service members, eligible veterans, and the surviving spouses of deceased veterans are eligible.
• Restrictions on qualifying – Only available for current military service members, veterans, and surviving spouses who can obtain a Certificate of Eligibility.
• How to apply – Applicants apply for VA loans through participating lenders. The lenders handle the paperwork.
• Program contact information/learn more – For more information, call the VA at 1-877-827-3702. Address: An address is not provided, but people can request virtual or in-person appointments with the Salt Lake City Regional Office by following this link: https://va.my.site.com/VAVERA/s/

Native American Veteran Direct Loans (NADLs)

If you are a veteran and are a member of a Native American tribe, or your spouse is, you might be eligible for a Native American Veteran Direct Loan through the VA. This program allows buyers to buy or build homes on tribal lands. The NADL program charges a funding fee, but it does not require mortgage insurance. Unlike regular VA-backed loans that are insured by the VA, the VA serves as the lender for Native American Veteran Direct Loans.

• Program name – Native American Veteran Direct Loans
• Administering organization – U.S. Department of Veterans Affairs
• Who qualifies – Eligible Native American service members/spouses who want to build or buy homes on tribal lands for tribes that have a memorandum of understanding with the government and who can qualify for a certificate of eligibility may qualify.
• Restrictions on qualifying – Must be a Native American military service member, veteran, or spouse who can obtain a certificate of eligibility and intends to build or buy a home on tribal lands for a tribe with an MOU with the federal government.
• How to apply – Buyers should first obtain a certificate of eligibility. They can then contact a NADL coordinator to begin the process.
• Program contact information/learn more – To start the process, call an NADL coordinator at 888-349-7541 (TTY: 711 or by email at t NADL@va.gov. A physical address is not provided.

US Department of Agriculture (USDA) Loans

USDA-backed mortgages are guaranteed by the USDA and designed for homebuyers with low to moderate incomes. Buyers must be willing to buy homes in designated rural areas in Utah. They do not have to make downpayments but must pay an upfront fee and an annual fee that can be rolled into their loans.

Applicants with very low or low incomes might be eligible for direct loans from the USDA.

• Program name – USDA home loans
• Administering organization – USDA
• Who qualifies – Homebuyers with low to moderate incomes who meet eligibility requirements qualify.
• Restrictions on qualifying – Buyers must meet the income guidelines and be willing to buy homes in designated rural areas in Utah. They must live in the homes as their principal place of residence.
• How to apply – For USDA-backed mortgages, people can apply through participating lenders. Applicants with very low or low incomes who want to apply for single-family direct USDA loans can apply through their local rural development office.
• Program contact information/learn more – Call the Utah state office at (801) 524-4320. Address: Wallace F. Bennett Federal Building, 125 South State Street, Room 4311, Salt Lake City, UT 84138.

Freddie Mac Home Possible Mortgages

The Home Possible Mortgage through Freddie Mac is designed for well-qualified borrowers with very low or low incomes who can make down payments of 3%. They must have a minimum credit score of 660 and can use a variety of sources for down payments. If you make a down payment of less than 20%, you will have to pay private mortgage insurance. However, the PMI can be canceled once you reach a loan-to-value (LTV) ratio of 80%.

• Program name – Home Possible
• Administering organization – Freddie Mac
• Who qualifies – Homebuyers with good credit who meet the income guidelines can qualify for the Home Possible mortgage program.
• Restrictions on qualifying – Buyers must have minimum credit scores of at least 660 and be able to put down a minimum of 3% from a variety of sources, including their own funds, gifts, or down payment assistance programs. Buyers must also have an income below Home Possible Qualifying Income Limit (80% of the median area income).
• How to apply – Borrowers should apply through participating lenders.
• Program contact information/learn more – Freddie Mac does not provide direct contact information. However, you can fill out the agency’s online contact form to be contacted.

HomeReady Mortgages from Fannie Mae

Like Freddie Mac, Fannie Mae also offers a mortgage program designed for low-income homebuyers called HomeReady Mortgages. This program allows qualified buyers with minimum credit scores of at least 620 to purchase homes with down payments as low as 3%. Those who have credit scores of 680 or higher will secure the best interest rates. People can use a variety of sources to make their downpayments, including their own funds, gifts, or down payment assistance programs.

• Program name – HomeReady
• Administering organization – Fannie Mae
• Who qualifies – Borrowers with credit scores of at least 620, and have an annual income below 80% of the area median income where the home is.
• Restrictions on qualifying – Must have a credit score of 620+ and meet income guidelines to qualify. First-time homebuyers must complete a homeownership education course.
• How to apply – Eligible homebuyers can apply for a HomeReady mortgage through a lender.
• Program contact information/learn more – Prospective buyers can call 1-800-2FANNIE and press 4. No physical address is provided by Fannie Mae.

Fannie Mae Standard 97% LTV Loan

First-time homebuyers at any income level can qualify for a conventional 97% LTV loan from Fannie Mae. These mortgages are available through most lenders and require borrowers to have minimum credit scores of at least 620. The borrowers must put down 3%, but they can get downpayment and closing cost assistance to cover them.

• Program name – Standard 97% LTV Loan
• Administering organization – Fannie Mae
• Who qualifies – First-time homebuyers at any income level with credit scores of at least 620 who can put down 3% from a variety of sources might qualify.
• Restrictions on qualifying – First-time homebuyers must have credit scores of at least 620 and must complete a homebuyer education course.
• How to apply – First-time homebuyers should apply through their lenders.
• Program contact information/learn more – Prospective buyers can call 1-800-2FANNIE and press 4. No physical address is provided by Fannie Mae.

Contact City Creek Mortgage

Even if you have never owned a home or don’t have much saved for a down payment, it still is possible to buy a home in Utah with the help of the professionals at City Creek Mortgage. To learn more about any of these programs and find out whether homeownership might be an option for you, contact us today at (801) 501-7950.