Down Payment Assistance Programs for Utah First-time Buyers

You want to buy a home but you are not sure how to make it happen because maybe your credit is not that great or you do not have enough money saved for a full down payment. Whatever your excuses are, there is still something that you can do to make it happen.

Homeownership is not easy but you have to know that in Utah, there is DPA (Down Payment Assistance). The DPA gives chance to low to moderate-income families or individuals to own a house. The assistance can be in the form of a grant (that will be forgiven after a certain period of time) or a 0% interest deferred loan (that needs to be repaid when the primary residence is terminated or property sold).

Now is the right time to own a house. To help you get started, here’s OnQFinancial’s guide to down payment assistance in Utah:

Learn if you are qualified
By knowing if you are qualified, you can plan accordingly. The requirements are the following:
• You must be a first-time homebuyer. However, you should not take it literally because

you will be considered a first-time homebuyer if you have not owned a home in the past three years.
• Your annual gross income must be equal to or less than 80% of the AMI  (Area Median Income) limits as established by HUD (Housing and Urban Development).  The income should include all income from family members – who are at least 18 or 16 (for West Jordan) years old.
• You need to complete the Homebuyer Education Course as required by the specific DPA program.

Learn the available DPA programs
You have to secure your funds before you even start looking for a house. DPA programs will help cover your down payment or even your closing costs. There are home grants available in Salt Lake County – $10,000 (for Sanday, Kearns, and Magna), $7,500 (for Murray) and $5,000 (for Midvale, Salt Lake City, West Valley, and West Jordan).

In Utah County, Provo City offers $5,000 DPA and $15,000 for other cities. In Weber County, all cities offer $5,000 DPA. In Cache County, Logan offers $7,500 DPA. All cities in Davis County except Clearfield offer $2,000 DPA. Finally, all cities in Tooele County offer $2,000 DPA.

Apply for a DPA program
When you apply, it will depend on where you are looking to buy. There are some DPA programs that require application if the home is under contract. Some DPA program requires that you complete the education course or at least schedule if before applying.

On top of this, you need to present a Pre-Qualification Letter from the lender of your choice. For this, you can utilise any type of loan like the FHA (Federal Housing Administration), Conventional or VA (Veterans Affairs).

In Salt Lake City, Taylorsville and Salt Lake County, they prioritise applicants that already completed HUD Approved Buyer Education Class. In West Valley City, they require pre-counseling education and the application before making an offer. In West Jordan, they only require education certificate submitted before the closing of the loan. In Davis County, you simply submit an education certificate within one week of submitting your official application.