Utah Housing $20,000 Down Payment Assistance Program

What is the Utah Housing $20,000 Down Payment Assistance Program?

This program provides a significant boost to first-time homebuyers in Utah by offering $20,000 to assist with down payment and closing costs. This assistance can be a game-changer, reducing the financial burden and making homeownership more accessible.

Requirements to Qualify

To be eligible for this fantastic program, prospective homebuyers must meet several key requirements:

• Utah Resident: To qualify as a Utah resident you must have resided in Utah for the last 12 months. 
• First-Time Homebuyer Status: You must be considered a first-time homebuyer. Generally, this means you have not owned a home in the past three years. Exceptions may apply for those purchasing in targeted areas or for specific situations, so it's always best to consult with a UHC-approved lender.
• Income Limits: There are income limits based on household size and the county where the home is located. These limits are subject to change, so it's crucial to check the most current guidelines on the Utah Housing Corporation website or with a UHC-approved lender. The household income limit for Utah County is $162,500. 
• Credit Score: You will need to meet the minimum credit score requirement of 620 for the FirstHome loan type. A score of 660 qualifies you for the best interest rate with the FirstHome loan type.
• Property Location: The home you wish to purchase must be located within the state of Utah.
• Debt-to-Income Ratio: Your debt-to-income (DTI) ratio will be evaluated to ensure you can comfortably afford your mortgage payments in addition to your other financial obligations.
• Loan Type: The down payment assistance is paired with a Utah Housing Corporation mortgage loan (FirstHome, FHA/VA, or Conventional).

Frequently Asked Questions (FAQs)

Q: Is this a grant, or do I have to repay the $20,000?

A: The $20,000 is typically structured as a second mortgage, meaning it is a loan that will need to be repaid. However, the terms are often favorable, with no payments and zero interest. Repayment is only triggered upon refinance or sale. The amount is only repaid in full if there is at least $40,000 in equity left after paying off the primary mortgage. 

Q: Can I use this program with any lender?

A: No, you must work with a lender who is approved by the Utah Housing Corporation to offer their programs.

Q: What types of properties are eligible?

A: New construction single-family homes, condominiums, and townhouses are under $450,000 are eligible.

Ready to Take the Next Step?

If you're a first-time homebuyer in Utah, don't let the down payment hold you back from achieving your homeownership dreams. The Utah Housing $20,000 down payment assistance program could be the key! To learn more and see if you qualify, contact a UHC-approved lender today. They can guide you through the process, answer your specific questions, and help you navigate the path to becoming a proud homeowner in Utah.