Guides / Down Payment Assistance / Utah

Down Payment Assistance in Utah

Utah does have a distinct state-level down payment assistance structure, run entirely through Utah Housing Corporation (UHC), the state's official Housing Finance Agency — there is no separate 'DPA-only' agency. The two most significant, currently-active programs are: (1) the legislatively-created First-time Homebuyer Assistance Program (SB240/Utah Code 63H-8-502), a 0%-interest, deferred-payment loan up to $20,000 restricted to newly-built homes under $450,000, confirmed directly from Utah Housing Corporation's official FAQ PDF; and (2) Utah Housing's standard Down Payment Assistance (DPA) second mortgage, offered alongside its FirstHome/HomeAgain/Score/HFA Advantage/NoMI first-mortgage loan programs, providing up to 6% of the loan amount as a repayable 30-year second mortgage (not a grant), confirmed from UHC's official 'Down Payment Assistance and Loan Programs' comparison sheet. Note that some numeric details (exact current DPA interest-rate spread, and 2026 income/price limits by county) come from secondary mortgage-industry sites corroborating each other and should be double-checked against utahhousingcorp.org/homebuyer/limits directly before publishing, since UHC's own downloadable comparison forms on file are dated 2022-2023 revisions and UHC updates income/price limits periodically.

Programs

First-time Homebuyer Assistance Program (created by SB240, Utah Code 63H-8-502)
Utah Housing Corporation (Utah's state Housing Finance Agency)
Amount: Up to $20,000 as a 0% interest, no-monthly-payment second loan (subordinate note/deed of trust). Funds can be used for down payment, closing costs, and/or a permanent interest rate buydown. Repayment is due only upon sale or refinance, and is capped at the LESSER of (a) the assistance amount received or (b) 50% of the home's equity gain. The Utah Legislature appropriated funds to assist approximately 2,400 buyers; availability is limited and tracked on a running tally by Utah Housing.
Type: Deferred-payment, equity-share-capped second mortgage (0% interest, not a grant)
Must be a 'first-time homebuyer' per IRC Section 143(d) (no ownership interest in a principal residence in the prior 3 years, with an exception for certain single parents); must have been a Utah resident for at least 12 months before closing; home must be NEW CONSTRUCTION (not yet inhabited) with a purchase price not exceeding $450,000; must use a Utah Housing Participating Lender and one of Utah Housing's first-mortgage loan programs; income limits apply and are set by whichever underlying Utah Housing loan program is used (e.g., FirstHome); cannot be combined with Utah Housing's Veteran or Law Enforcement/Corrections Officer grants.
FirstHome Loan + Down Payment Assistance (DPA) Second Mortgage
Utah Housing Corporation
Amount: DPA second loan of up to 6% of the first mortgage loan amount, usable toward down payment and/or closing costs. Per Utah Housing's official program comparison sheet (Form 211), the DPA is a fully amortizing 30-year fixed-rate second mortgage (not a forgivable grant), with an interest rate set above the first mortgage rate (documented at 1-2 percentage points higher in Utah Housing's official forms). Buyers who decline the DPA loan receive a rate reduction on their first mortgage instead.
Type: Repayable 30-year fixed-rate second mortgage (not forgivable)
Must be a first-time homebuyer (no ownership of a principal residence in the past 3 years, with exceptions for some single parents/veterans); minimum credit score of 660 (an occupant co-borrower with no credit score may be permitted); must meet county-specific income limits and purchase price limits set by Utah Housing (e.g., Salt Lake County income limit approximately $117,600 for 1-2 person households and $137,200 for 3+ person households, with a purchase price limit around $562,000 — verify current figures at utahhousingcorp.org/homebuyer/limits); property must be owner-occupied, cannot be rented, and must be an eligible type (single-family, condo, PUD, or manufactured home on permanent foundation); homebuyer education is recommended but not required for this specific program track.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in UtahTransfer Tax & Closing Costs in UtahBuyer-Agent Agreements in UtahSeller Disclosure Laws in UtahFind Agents in UtahDown Payment Calculator