Utah Homeownership Assistance Programs

With house prices on the rise in Utah, first-time home buyers may need a boost to enter the state’s real estate market. The median selling price and sales in the state increased in 2020, weighing on supply and affordability.

Despite these challenges, first-time buyers in Utah have affordable mortgage options and down payment help it can make buying a home easier. Utah Housing Corporation, the state’s housing authority, is a resource for these programs, many of which are aimed at low to moderate income first-time buyers.

First-Time Home Buyers Loan Programs in Utah

Utah Housing Corporation (UHC or Utah Housing) offers four mortgage programs for first-time homebuyers, some of which are also open to regular homebuyers. These 30 year fixed rate loans range from FHA and VA loans to conventional loans, and down payment assistance can be combined with any of the programs. Here’s a breakdown of each:

Utah Housing First Home and Home Again Loans

The First Home Loan in Utah is designed for first-time buyers and qualifying single parents or veterans, and tends to boast of having the lowest interest rate among programs in the home. ‘agency. The Utah Housing Home Again Loan is available to both repeat home buyers and first-time home buyers who do not qualify for a FirstHome loan. Unlike many first-time home buyer loan programs, no educational course is required to qualify for a FirstHome loan.

Needs of the borrower:

  • 660 minimum credit points
  • Maximum debt ratio based on FHA or VA loan requirements; if you are applying with a co-signer, the DTI ratio of the co-signer cannot exceed 45%
  • Must meet Utah Housing income limits

Property Requirements:

  • Must be an owner-occupied single-family home, FHA-approved manufactured home or condominium or Unit Development Project (PUD); can be an owner occupied duplex for a home loan
  • Must be one acre or less (or five acres or less if in a rural area) for the FirstHome loan; no area limit for the Home Again loan
  • Must meet Utah Housing purchase price limits for FirstHome Loan; no purchase price limit for the Home Again loan

Home loan in Utah

Utah Housing Score Loan provides home ownership for new buyers and regular buyers who have poor credit history and low to moderate income. Regular buyers do not need to own any other property at the time of closing to be eligible for this type of loan.

Needs of the borrower:

  • 620 minimum credit points
  • Maximum debt-to-income ratio of 45%
  • Must take Home Buyer’s Training Course
  • Must meet Utah Housing income limits

Property Requirements:

  • Must be an owner-occupied single-family home
  • No area limit
  • Must meet Utah Housing purchase price limits

NoMI home loan in Utah

Available to first-time buyers and first-time buyers, Utah Housing’s NoMI Loan (No Mortgage Insurance) offers the lowest mortgage payment among the agency’s programs, as there is no requirement for mortgage insurance. mortgage insurance.

Needs of the borrower:

  • 3% deposit
  • 700 credit points minimum
  • Maximum debt-to-income ratio of 50%
  • Must take Home Buyer’s Training Course
  • Must meet Utah Housing income limits

Property Requirements:

  • Must be an owner-occupied single-family home
  • No area limit
  • No purchase price limit

Utah Down Payment Help

Utah Housing Down Payment Assistance

First-time homebuyers can combine a Utah Housing Second Downpayment Assistance Mortgage with one of the agency’s first mortgage programs. The second mortgage is a 30-year fixed rate loan with an interest rate 2% higher than the rate on the first mortgage. The amount of aid, which can be used for a down payment and closing costs, varies depending on the type of first mortgage:

Type of loan Assistance
FirstHome loan or Home Again loan Up to 6%
Loan score Up to 4%
NoMI loan Up to 5%

Salt Lake City Plus Down Payment Assistance

Homebuyers in the Salt Lake City area may be eligible for down payment assistance of up to $ 14,000 in the form of a deferred forgiveness loan from the Community Development Corporation of Utah (CDCU). Borrowers can use these funds as a down payment or closing costs.

If you are buying in Salt Lake County, the borrower must be a first-time home buyer to qualify, defined as someone who has not owned a home in the past three years. Additional eligibility requirements include:

  • Maximum debt-to-income ratio of 45% to 50%
  • Must contribute $ 1000 towards the purchase
  • Must complete Home Buyers Training Course and HUD counseling session
  • Must meet CDCU income limits

Note that in 2021, Salt Lake County down payment assistance funds are limited and the program is also limited to specific areas of the county. Make sure to verify your eligibility before applying.

Funding assistance for the Chenoa Fund

First-time homebuyers and returning home buyers can also get a down payment assistance loan through the Chenoa Fund, an affordable housing program of the CBC Mortgage Agency, which is owned by the Cedar Band of Paiutes. in Utah. The Chenoa Fund offers assistance nationwide (except New York), not just to Utah borrowers.

The down payment loan is a second mortgage that can be combined with an FHA loan of up to 5 percent in aid. The second mortgage can be for 10 or 30 years and have as little or no interest.

The eligibility conditions include:

  • 620 or 640 minimum credit points (depending on the program)
  • Maximum debt-to-income ratio of 50% (depending on the program)
  • Must meet income limits (depending on the program)

Note that the Chenoa Fund usually offers down payment assistance for conventional loans, but this program has been suspended due to the pandemic.

Other Homeownership Loan Programs

Government loan programs such as FHA, VA, and USDA mortgages offer terms and rates that can make home buying easier for first-time home buyers. Your mortgage lender can guide you through other specialized mortgage loan and assistance options. Visit Bankrate’s Program Guide for First-Time Home Buyers for a complete list of loans.

For other homeownership programs in Utah, including by city or county, visit HUD.gov.

To start

Now that you have a better idea of ​​the mortgage assistance and down payment options available to first-time homebuyers in Utah, it’s time to take the next step. An Approved Utah Housing Corporation mortgage lender can help you find a loan that meets your needs and start the application process. Terms and interest rates vary from lender to lender, so be sure to compare loan options to find the best loan for you.

Programs for buying a first home in neighboring states

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