First-Time Home Buyers In Utah: A Guide To Loans, Assistance Programs And More

Utah offers home loans, grants and down payment assistance programs to help first-time home buyers. If you’re looking to settle down and buy a house in Utah, one of the following programs can help.

Who Qualifies As A First-Time Home Buyer In Utah?

You may qualify as a first-time home buyer in Utah if you haven’t owned a primary residence in the last 3 years. First-time home buyers may be eligible for certain loans or down payments assistance.

Utah Home Buyer Statistics

If you’re considering buying a home in Utah, here are some buyer statistics to keep in mind:

• Median household income: According to the S. Census Bureau, the median household income is $74,197.
• Average credit score: According to Equifax^®, the average credit score among home buyers in Utah is 708.
• Minimum down payment (3%): Depending on the loan, Utah buyers can get a home for a down payment as little as 3%. If they qualify for a VA loan or USDA loan, they may be able to purchase a home with down payment required. Keep in mind that some lenders may not offer these loans. For example, our sister company Rocket Mortgage^® does not currently offer USDA loans.

Utah First-Time Home Buyer Mortgage Programs

The Utah Housing Corporation (UHC) provides grants, home loans and down payment assistance to first-time home buyers in Utah. The UHC doesn’t make the loans themselves but provides them through its network of participating lenders.

FirstHome Loan

The FirstHome loan program provides first-time home buyers with a 30-year mortgage at competitive interest rates. The loan can be used to purchase a single-family home, planned unit development (PUD), condo, or manufactured home anywhere in Utah. You can also receive down payment assistance through a second loan of up to 6% of the loan amount.

To qualify, you must work with an approved UHC participating lender and have a credit score of at least 660. There are also income limits and purchase price restrictions.

HomeAgain Loan

The HomeAgain loan program offers loans with affordable interest rates to first-time and repeat home buyers. It’s similar to the FirstHome program, but the rates may be slightly higher since the income limits are higher. This program also offers a second loan of up to 6% of the mortgage amount to assist with your down payment.

You’ll need a minimum credit score of 660 to qualify. If you need help with your down payment or closing costs, you may be able to take out a second mortgage for up to 6% of the primary mortgage amount.

Score Loan

If your credit score is below 660, you may qualify for the Score program. The program provides loans for low and moderate-income borrowers. If you need help with your down payment or closing costs, you may be able to take out a second mortgage for up to 4% of the primary mortgage amount.

To qualify, you’ll need a minimum credit score of 620 and you must take a homebuyer education course. Keep in mind, there are also income and purchase price limits.

Freddie Mac HFA Advantage Loan

This conventional loan is a 30-year fixed-rate loan that helps home buyers save on mortgage insurance. With this program, UHC may provide up to $25,000 in down payment assistance with a second mortgage. While interest rates may be higher than other loan programs, there may be lower mortgage insurance costs. To qualify, you’ll need a credit score of at least 700 and there are income limits.

Utah Down Payment Assistance Programs And Grants

As mentioned above, the UHC provides down payment assistance programs and grants that can be used in conjunction with other loan programs. There are also local programs available for certain areas of Utah.

UHC Down Payment Assistance

If you’re hoping to qualify for down payment assistance, you need to qualify for a UHC first mortgage home loan – one of the programs listed above. Depending on the program, loans may be available as an FHA, VA or conventional loan. The program that works best for you will depend on your credit score, debt-to-income (DTI) ratio and the price of your home.

From there, you can work with a lender to determine how much down payment assistance you need. You may be eligible to cover part or all of your down payment and closing costs.

UHC Veterans Grant

The Utah Home Buyer Veteran Grant is a grant available to first-time home buyers and active duty service members or veterans who separated in the last five years. If you qualify, you could receive up to $2,500 in cash when you purchase a home and the grant doesn’t have to be repaid. The grant is available while funds last. For more information and to check availability, visit the Utah Department of Veterans & Military Affairs. 

Community Development Corporation Of Utah Down Payment Assistance

The Community Development Corporation of Utah (CDCU) provides down payment assistance to low- and moderate-income borrowers. Down payment assistance is awarded as a forgivable loan with no payments or interest charges.

This assistance is only available to select Salt Lake City, Salt Lake County, and Taylorsville residents. The funds are awarded on a first-come, first-qualified basis.

NeighborWorks Salt Lake Down Payment Assistance

The NeighborWorks Salt Lake down payment assistance program is available to low- and moderate-income families. Right now, funds are available to buyers looking to purchase a home within Salt Lake City. It’s a 5-year forgivable loan, and it does come with income restrictions. The program has limited funds available each year. Visit NeighborWorks online to check availability.

West Valley City Down Payment Assistance Grant

The West Valley City down payment assistance grant is available to first-time home buyers. A grant of up to $14,999 is available to households looking to buy in the West Valley City boundaries.

To qualify, you need to have a minimum credit score of 550 and your debt-to-income ratio can’t exceed 43%. And your income cannot exceed 80% of the area median income (AMI) for your household size.

The Bottom Line

The Utah Housing Corporation offers loans and down payment assistance programs to make homeownership more affordable for first-time homeowners in Utah. If you’re ready to start the mortgage approval process, apply with Rocket Mortgage today.