The beautiful state of Utah is the 13th largest in the United States in terms of total area. It's 85,000 mi.² meaning that there's plenty of room for residents to live comfortably - whether they prefer city life, suburbia, or a more rural atmosphere. Regardless of where the state's citizens live, buying a first home can be challenging if individuals or couples are lacking the proper finances. That's why it's important for first time home buyers in Utah to know that there is assistance available.
Your real estate agent or banker should be aware of first time home buyer programs you might be eligible for. They are kept up to date as to what is available through state governments and private organizations. Most of the time their information comes from the Utah Housing Corporation, the state entity responsible for administering housing programs in Utah. If you are just beginning the home buying process for the first time, ask your real estate agent about opportunities you might be eligible for.
The Utah Housing Corporation
The Utah Housing Corporation is a public entity created by the state legislature in 1975. Though its mission is comparable to other similar state agencies, the language used by the legislature in its creation is rather unique. For example, the Utah Housing Corporation is responsible for "creating an adequate supply of money" to be used for mortgage loans and other housing assistance for low and moderate income earners. At the present time the UHC has only two programs available specifically for first-time buyers. They are known as First Home and First Home Plus.
First Home
Utah's First Home loan program is a mortgage only program that provides first time home buyers with a 30-year mortgage at a reasonable interest rate. The rate fluctuates in accordance with the Prime Rate, but at the time of this writing it was 4.5%. Loans are made by participating lenders approved by the state as part of the program.
In order to be eligible for a First Home mortgage a buyer cannot have owned a principle interest in another home in the three years prior to application. Furthermore, income eligibility requirements are in place, including a minimum credit score of 660 for each individual listed on the loan.
There are specific property requirements as well; including restrictions against renting all or part of a home while the mortgage loan is outstanding. Sales prices must also fall within specific guidelines according to geographic areas set by the state. Details of property restrictions can be found by visiting the UHC website.
First Home Plus
First Home Plus is a program offering additional assistance for down payment and closing costs. All of the same requirements apply from the previous program and the assistance is only given to those who are participating in the First Home program. The UHC doesn't specify whether this additional assistance comes in the form of a secondary loan or a forgivable grant. Some states use the secondary loan model which gives the assistance as a loan that can be paid off at any time during the life of the mortgage. Other states make this assistance a forgivable grant as long as the first time home buyer fulfills all of his program commitments.
Additional Home Buyer Assistance Programs
Utah residents have a moderate selection of other programs to choose from. These programs are administered by nonprofit organizations, local municipalities, and counties. We have included the most recent list of available programs as provided by the Department of Housing and Urban Development (HUD). Keep in mind that, while this is the most recent HUD list available, it may not necessarily be accurate or up-to-date.
- Logan Neighborhood Non-Profit Welcome Home Own in Logan Program (DPA)
- Multi Counties Bear River Association of Governments First Time Homebuyer Program (FTHB)
- Multi Counties Housing Services of Utah Valley Loan to Own Program (LTO)
- Ogden Lincoln Court Townhomes Downpayment Assistance Program (DAP)
- Ogden Own-in-Ogden Program
- Ogden Urban Homestead Program (UHP)
- Provo 80/20 Down Payment and Closing Cost Assistance Program (DPA)
- Provo Down Payment and Closing Cost Assistance Program (DPCCA)
- Provo Neighborhood Housing Services, Inc. Down Payment and Closing Cost Assistance Program (DPCCP)
- Salt Lake Community Development Corporation of Utah Own in Salt Lake Downpayment Assistance Program (DAP)
- Salt Lake Neighborhood Housing Services Inc A Home to Own Program (DAP)
- Tooele County Down Payment Assistance Program (DAP)
- West Jordan Down Payment Assistance Program (DPA)
- West Valley City Home Ownership Program (HOP)