Are you ready to buy your first home in Utah but need help with the down payment or closing costs? The Community Development Corporation of Utah (CDCU) offers a Down Payment Assistance (DPA) program to make homeownership more affordable for income-eligible first-time homebuyers. This federally funded program provides deferred, no-interest loans—some even forgivable—to help you achieve your homeownership dreams.

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What is the CDCU Down Payment Assistance Program?

The CDCU DPA program offers financial assistance to cover:

  • Down payments
  • Closing costs
  • Principal reduction (in select cases)

These deferred loans require no monthly payments and carry 0% interest. Depending on the program and location, the loan may be forgivable after a set period, such as 15 years. Assistance is awarded on a first-come, first-qualified basis due to limited funding, so applying early is critical.

The program serves specific areas, including:

  • Salt Lake City
  • Magna
  • Kearns
  • Taylorsville
  • Parts of Salt Lake County

Am I Eligible?

To qualify for CDCU’s DPA program, you generally need to:

  • Be a first-time homebuyer (no homeownership in the past three years, per HUD guidelines).
  • Have a household income at or below 80% of the Area Median Income (AMI) (some programs allow up to 120% AMI).
  • Purchase a home with a maximum price of $492,000 (subject to change).
  • Use the home as your primary residence during the loan term.
  • Have less than 10% of the purchase price in savings/checking accounts.
  • Complete a HUD-approved homebuyer education course (priority given to those with certification at application).

Additional requirements may apply based on funding and location. Contact a CDCU Intake Specialist at (801) 994-7222 to verify eligibility and check funding availability.

How Much Assistance Can I Get?

The amount of assistance depends on the program and location:

  • Salt Lake City: Up to $14,000, often forgivable after 15 years.
  • Salt Lake County & Taylorsville: Up to $10,000 as a deferred loan.
  • Magna & Kearns: Up to $10,000 or 6% of the sale price (whichever is lower).

Awards are determined case-by-case based on need and available funds. A $75 property assessment fee and other costs may be deducted at closing.

Special Program: Community HEROES Home Buyer Program

Salt Lake City’s Community HEROES program, in partnership with CDCU, supports first responders, teachers, and nurses. It offers up to $14,000 in DPA, prioritizing single-income households and those earning less than 80% AMI. A separate application disclosure is required.

How Does the Program Work?

Key Features

  • No Discrimination: CDCU complies with all Fair Housing and Civil Rights laws, ensuring equal access for all, regardless of race, religion, sex, disability, or other protected statuses.
  • Property Standards: Homes must pass a CDCU visual inspection for health and safety, including checks for lead-based paint (pre-1978 homes) and required detectors. Radon testing is offered in Salt Lake City.
  • Application Timeline: The process takes 25-30 days if all documents are complete.

Steps to Apply

  1. Apply with a mortgage lender or broker for loan pre-approval. Your loan officer will calculate total household income to see if you meet the requirements of the program.
  2. Check Eligibility: Confirm the property is in an eligible area.
  3. Complete Education: Enroll in a HUD-approved homebuyer education course through a certified agency.
  4. Gather Documents: Provide income verification (e.g., pay stubs, SSI/SSA letters), proof of funds, and other items listed in CDCU’s application checklist.
  5. Submit Application: Download the DPA application and, if applicable, the Community HEROES disclosure from. Submit with all required documents.
  6. Get Support: Contact CDCU at (801) 994-7222 or email an Intake Specialist for assistance.

Note: Incomplete applications may be denied, so ensure all documents are included.

Important Information

Why Choose CDCU’s DPA Program?

  • No monthly payments or interest on deferred loans.
  • Potential loan forgiveness after the required term.
  • Support for first-time buyers to build financial stability.
  • Dedicated assistance from CDCU’s experienced team.

Take the First Step Toward Your New Home

The CDCU Down Payment Assistance program is a powerful resource for first-time homebuyers in Utah. With limited funding, now is the time to act!

Ready to apply? Get Started Today and apply online with Steve Jones with First Class Home Mortgage for loan pre-approval by clicking on the “Apply Now” link at the top of the page or call 801-913-6502 to setup a consultation. Then visit cdcutah.org for Down Payment Assistance applications and details, or call (801) 994-7222 to speak with a CDCU Intake Specialist today.

Program details and funding availability are subject to change. Contact CDCU for the latest information.

Information last updated on 4/16/2025.