Utah buyers may have access to programs that can reduce the amount of cash needed to purchase a home.
Some assistance may not require repayment. Other programs use deferred or repayable second mortgages. Before choosing one, understand what it does to your cash, payment and future options.
Assistance may be grant-style, forgivable, deferred or structured as a loan that must eventually be repaid.
Some programs add a second mortgage payment while others defer repayment until a future event.
Compare the assistance with your cash to close, savings after closing, monthly payment and longer-term plans.
The goal isn't to use the most assistance. It's to choose the financing that leaves you in the strongest position after closing.
Utah Housing Corporation works with participating lenders to offer first mortgages, down payment assistance and several targeted homebuyer programs. The right option depends on the buyer, the property and how the assistance is structured.
Utah Housing's Traditional DPA is a 30-year fixed-rate second mortgage that may provide up to 6% of the first mortgage amount, subject to the program maximum.
Utah Housing's Deferred DPA may provide up to 3.5% of the first mortgage amount. No monthly payment is required on the second mortgage.
These are second mortgages—not grants. Repayment terms differ by program, and the outstanding balance can become due when the home is sold, refinanced or the loan reaches maturity.
Utah's First-time Homebuyer Assistance Program can provide qualifying buyers with funds toward a newly constructed, previously unoccupied home.
Qualifying Utah law-enforcement and correctional officers may have access to interest-free assistance that can be forgiven over time when program requirements are met.
Eligible Veterans may qualify for Utah's first-time homebuyer Veteran Grant. The grant does not require repayment and is subject to available funds and program eligibility.
Getting help with the upfront cash can be valuable. But the assistance should be evaluated along with the payment, repayment terms and the amount of savings you will still have after closing.
Assistance may reduce the amount you need to bring to closing, which can make purchasing sooner more realistic.
Some assistance programs include a monthly second-mortgage payment while others defer repayment. That difference matters to the monthly budget.
A second mortgage may become payable when you sell, refinance or reach another triggering event. That future obligation should be understood before closing.
Preserving money for reserves, repairs, moving costs and unexpected expenses can sometimes be more valuable than minimizing the amount financed.
The goal is not simply to bring less money to closing. It is to buy the home with a payment and cash position you can comfortably live with afterward.
There is not one universal down payment assistance profile. The program has to fit your income, credit, first mortgage, property and available funding.
Down payment assistance works together with an eligible first mortgage. Income, debts, credit and the proposed housing payment still have to support the loan.
Income limits and other eligibility rules vary by program. Some options are specifically for first-time buyers while others may also be available to repeat buyers.
Property type, occupancy and sometimes purchase price can affect eligibility. Most Utah Housing homebuyer programs are designed around an owner-occupied primary residence.
Assistance programs, funding and requirements can change. That is why it makes sense to review the current options before relying on a specific assistance amount.
Start with the home price, income, credit and cash you have available. From there, we can determine which assistance options are actually worth exploring.
Start with the home price you're considering, your income, credit and the cash you have available. From there, I can review the current programs and show you what the numbers look like.
We review your basic homebuying numbers.
We check which current assistance programs may fit.
You compare the payment, cash to close and repayment terms.