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 “Own in Salt Lake County” first time home buyer program is a federally funded deferred loan/grant program that can provide up to $20,000 which can be applied to the 50% of required down payment. The goal of this government assistance program is to offer income-eligible households grant funds to help purchase a single-family home. Deferred loan funds shall be repaid in full by the recipient if the homeowner sells; exchanges or transfers title; decides to refinance for any other reason than to reduce their interest rate; or ceases to use the property as the primary residence. There are a limited amount of government grant funds available and they are distributed on a first-come, first-serve basis and take an average of 25 to 30 days to fund after a Letter of Commitment has been issued.
Qualifications & Requirements:
- No home ownership in the last three (3) years
- Home must be in a residential zone, single family residence only
- Max purchase price $522,500
- Applicants must contribute 50% of required down payment into the transaction. A minimum of $1,000 must be from applicants own personal liquid funds.
- Applicants must complete a home buyer education course and pre-purchase counseling
- Co-owner, co-borrower or co-signors are accepted, Community Development Corporation of Utah (CDCU) must be informed in writing if they are not on the initial “Own in Salt Lake County” application
- A visual assessment must be completed by CDCU or assigned agent for any safety or health concerns
- Income restrictions apply
The Tooele County Housing Authority (TCHA) helps qualified first time home buyers purchase a home by providing a federally funded loan of up to $10,000 to assist with down payment and/or closing costs. Loans are dispersed on a first come, first serve basis and can be applied to the purchase of a single-family home, condo, cooperative unit, or combination of manufactured housing and lot.
Qualifications & Requirements:
- No homeownership in the last three (3) years
- Applicant must contribute $1,000 of own money
- Applicant must attend a Housing and Urban Development (HUD) approved homebuyer education class and provide a certificate of completion
- A home inspection completed by a Utah licensed home inspector for health and safety concerns and lead-based paint for homes built prior to 1978
- Home must be located in Tooele County
“At Home in Layton” is a first time home buyer grant money program offered by Layton City Development Block Grant Program in cooperation with U.S. Department of Housing and Urban Development (HUD). Eligible home buyer applicants will receive up to $10,000 in grant money that may be used towards 50% of the down payment closing costs or a principal reduction. The Layton City first time homebuyer grant is forgiven in full If you live in the home for at least five (5) years. If the home buyer ceases to occupy the property within the first five (5) years the grant will have to be repaid on a pro-rated basis.
Qualifications & Requirements:
- Property must be located in Layton City, Utah
- First time homebuyer must provide 50% of required down payment
- No home ownership in the last three years
- First-come first-serve basis
- Must be below 80% of HUD median income
The “Own in Ogden” first time homebuyer program has helped hundreds and hundreds of people realize their dream of owning a home in Ogden. This government grant program offers $10,000 to first time buyers, $15,000 to state certified K-12 classroom teachers and $20,000 to sworn Police Officers and Firefighters when purchasing a home in Ogden city. These are zero interest, no monthly payment, down payment assistance grants. These grant funds are issued to first time home buyers as a loan attached to the property which will become due in full if the borrower ceases to occupy the property, sells the property or defaults on any of the established terms upon receiving the grant funds.
Qualifications & Restrictions for “Own in Ogden”:
- Property must be zoned residential
- Buyer must contribute $500 of own money towards purchase and take fee simple title to property
- First time homebuyer grant funds may be used for down payment, closing costs or principal reduction towards the first mortgage loan balance
- Property must meet minimum safety, construction, and habitability with no unresolved code enforcement violations
- Buyers assets in excess of $20,000 must be applied towards the home purchase
- Buyers must purchase property within the eligibility area of Ogden city
