Utah County has a first time buyer program that will allow up to $40,000 in down payment assistance (DPA). The ‘Loan to Own’ down payment assistance program is available in all cities in Utah County except for Eagle Mountain, Fairfield, Alpine and Provo. The DPA can be used for down payment and closing costs, but no prepaid items such as interest, taxes and insurance. The final amount of the DPA will be determined by the type of mortgage you get and the home buyers closing costs. If you plan to sell the home within two years of closing this is not the assistance for you. If you do sell within two years of closing you may face a hefty $5,000 penalty in addition to paying the full amount of the DPA given to you back. If selling in within two years is a possibility you may want to consider either the Chenoa Fund or a Utah Housing loan.
Qualifications & Requirements:
- Min of 650 qualifying fico score
- Must be at least six months with current employer
- Maximum purchase price of $551,000
- First time home buyer only
- Must be under maximum income limits
- $5,000 penalty if property sold within two years of closing
- 0% Interest no payments as long as you live in the home
- DPA must be paid back in full when the property is no longer the primary residence of the borrower(s)
Provo City, Utah has a first time homebuyer program that offers up to $40,000 in an effort to revitalize communities in Provo. Home Purchase Plus is a down payment assistance program that was recently introduced to help all of Provo City increase the amount of new and first time homebuyers. The Community Development Block Grant (CDBG) is a federally funded program and is administered through the US Department of Housing and Urban Development (HUD) and is responsible for this allocation of funds.
The total amount of grant (up to $40,000) is determined by the mortgage programs minimum required down payment plus up to 5% in closing costs depending on the type of mortgage acquired.
As long as you own and occupy the home, the $40,000 first time homebuyer program is an interest free (0%) no payment loan.
Qualifications & Requirements for Grant:
- You must be able to put down $1,000 of your own money
- Home must be located within Provo, Utah
- Must be a first time homebuyer (no ownership in a principal residence in the last 3 years)
- Must meet income eligibility and be at current job for at least 6 months
- Applicants must take “Pre-Home-Ownership Counseling” offered through Community Action or NeighborhoodWorks Provo
- Purchase price cannot exceed $551,000
- Property may be a single-family home, one half of a twin home, a condominium or town home, no renter displacement
- Can not have own assets of more than $15,000
- If home is sold or vacated within two years a $5,000 pre-payment penalty will be applied
The Utah Housing Score Loan is Utah mortgage loan program for borrowers who do not meet the minimum Fico requirement of the FirstHome or HomeAgain loan. For the Score Loan Utah Housing Corporation has set a 620 mid score for the minimum fico score. You still must be able to qualify and meet all the requirements for an FHA backed mortgage. The DPA portion allows for up to 4% of the FHA first mortgage loan in the form of a fixed rate second lien and can go towards down payment and/or closing costs. The property must be owner occupied and throughout the term of the UHC loan no portion of the property may be rented.
Qualification and Requirements:*
- Must qualify for an FHA loan
- Minimum of 620 mid Fico score
- Purchase loans only
- 4% of the first loan amount is available for DPA
- May be used anywhere in Utah
- Must follow maximum income limits
- Debt ratio will be limited to a maximum of 45%
- Homebuyer Education required within 90 days of closing
- Maximum income limit is $95,800
- No maximum purchase price
