The U.S. Department of Housing and Urban Development (HUD) partners with State Housing Agencies (SHAs) to facilitate down payment assistance (DPA) programs, making homeownership more accessible for low- and moderate-income individuals and families. The Utah Housing Corporation (UHC) serves as Utah's State Housing Finance Agency. As a public corporation, UHC’s primary mission is to expand affordable housing opportunities for low-and moderate-income households across the state. It operates independently, receiving no direct funding from the State of Utah, and sustains itself through innovative financing mechanisms like issuing tax-exempt bonds and selling mortgage-backed securities to investors.
Loan Program Options:
Utah Housing provides owner occupied home purchase options with FHA, VA and Conventional loan programs with a Utah Housing down payment assistance second mortgage.
- 1st Home Program – This option offers the lowest interest rate. Borrowers required to be first-time homebuyers, have a minimum credit score of 660 and subject to county total household income limits based on family size and purchase price limitations.
- Single-unit FHA and VA – Minimum credit score of 620. Borrowers do not have to be first-time homebuyers. Higher income limits based on borrower’s income instead of household income and loan limits match FHA county loan limits.
- Two-unit FHA and VA - Minimum credit score of 620. Borrowers do not have to be first-time homebuyers. Higher borrower income limits plus annual qualifying rental income from the other unit. Loan limits match FHA two-unit county loan limits.
- Freddie Mac HFA Advantage with borrower income less than 80% Area Median Income. Interest rate and mortgage insurance premium is reduced for borrower with income less than 80% of the area’s median income.
- Freddie Mac HFA Advantage with borrower income greater than 80% Area Median Income. Both Freddie Mac programs have a minimum credit score of 700 and has a slightly higher interest rate but may have a lower monthly mortgage insurance premium than FHA programs.
Grant and Other Assistance Program Options:
- First-Time Homebuyer Assistance (New Construction) – Utah Senate Bill 240 (2023) created the First-time Homebuyers Assistance Program. Funds for this program are distributed through Utah Housing Corporation. Funds from this bill may assist approximately 2,400 first-time homebuyers to purchase a newly constructed but not yet inhabited home. Program funds up to $20,000 can be borrowed for the home. Purchase Price not to exceed $450,000. Funding will be available until depleted and homebuyers must qualify for a Utah Housing Mortgage with a Utah Housing approved lender. The Assistance Program loan is a 0% interest, zero monthly payment loan secured by a subordinate recorded Deed of Trust and evidenced by a Subordinate Note. Repayment of all or a portion of the funds may be due upon sale or refinance.
- Utah First-time Homebuyer Law Enforcement / Correctional Officer Assistance Program - In 2023, the Utah State Legislature appropriated $5,000,000 to recruit and retain Utah Law Enforcement and Correctional Officers, as defined in Utah Code Sections 53-13-103 and 53-13-104. In the 2024 General Session, the Utah Legislature appropriated an additional $3,000,000 for the same purpose. The eligible Officer can receive grant funds not to exceed $25,000, to purchase their first home in Utah. Funds are available until depleted. The Law Enforcement Officer must qualify for a Utah Housing Mortgage with a Utah Housing approved lender. No payment or interest on the program. 5 years of employment with any jurisdiction(s) in Utah required following receipt of program funds, a pro-rata portion of the program is forgiven each year the individual is employed in Utah as an officer and occupies the home as their primary residence.
- Utah Homebuyer Veteran Grant - The Utah Legislature appropriated funds to assist Veterans purchase a home in Utah. The Grant is for members of the military or veterans who separated in the last five years and is a first-time Utah homebuyer as defined as a veteran that has not owned a home in Utah the past 7 years or a veteran moving to Utah from out of state. Eligible veterans could receive up to $2500 cash when they purchase a home, the Utah Veterans Grant does not require repayment. Funds are available until depleted. The veteran is not required to use a specific lender or Utah Housing loan program but must meet the Utah Department of Veterans and Military Affairs (UDVMA) approved veteran eligibility.
If you think you may qualify for any of these grant or other assistance programs, please reach out to me and I will send you more information and requirements about the program to ensure eligibility and review all requirements and conditions.
Conclusion:
The Utah Housing Corporation (UHC) offers a range of programs designed to make homeownership more accessible and affordable for residents of Utah. Through initiatives like low-interest mortgage loans, down payment assistance, and support for first-time buyers, UHC plays a vital role in addressing housing needs across the state of Utah. These programs not only empower individuals and families to achieve the dream of owning a home but also contribute to strengthening communities and promoting economic stability. All Utah Housing loan programs are serviced locally so you never need to worry about your loan being transferred to lender out of state.
