25 Utah First Time Home Buyer Grants & Programs in 2024

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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

 

01

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:

 

02

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:

 

03

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.

 

04

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.

 

05

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.

City Creek Mortgage’s Offerings

County and Local Resources for First-Time Homebuyers in Utah

 

06

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.

 

07

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.

 

08

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.

 

09

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.

 

10

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.

 

11

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.

 

12

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.

 

13

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.

 

14

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.

 

15

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.

 

16

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.

 

17

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.

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.

 

18

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.

 

19

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.

 

20

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.

 

21

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.

 

22

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.

 

23

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%.

 

24

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.

 

25

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.

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.