Down Payment Path

Down Payment Assistance Programs in Utah

Utah provides several programs to help homebuyers cover down payments and closing costs, making homeownership more accessible across the Beehive State. These programs cater to both first-time and repeat buyers, offering valuable financial support.

Utah Housing Corporation (UHC) Down Payment Assistance

The Utah Housing Corporation (UHC) offers flexible down payment assistance options to eligible homebuyers.

  • Provides up to 6% of the loan amount to cover down payments and closing costs.
  • Assistance is structured as a second mortgage with low monthly payments.
  • Pairs with UHC’s affordable fixed-rate mortgage products, including FHA, VA, and conventional loans.
  • Available to buyers meeting income and purchase price limits.

FirstHome Loan Program

The FirstHome Loan Program is designed for buyers seeking affordable mortgage options with down payment assistance.

  • Offers low fixed interest rates for eligible buyers.
  • Includes down payment assistance through a second mortgage loan.
  • Open to first-time and repeat buyers purchasing in eligible areas.

NoMI Loan Program

The NoMI Loan Program provides a unique option for buyers who want to avoid mortgage insurance costs.

  • Offers down payment assistance paired with conventional loans that eliminate the need for mortgage insurance.
  • Available to buyers meeting credit and income qualifications.
  • Designed to reduce monthly mortgage payments for eligible borrowers.

USDA Rural Development Loans

For buyers in rural parts of Utah, the USDA Rural Development Loan offers financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-designated rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be combined with UHC assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers tax benefits that reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Pairs with UHC loans and down payment assistance programs.
  • Income and purchase price limits apply but are designed to accommodate a wide range of buyers.

Local Assistance Programs

Several cities and counties in Utah provide additional resources to help homebuyers with upfront costs.

  • Programs in areas like Salt Lake City, Provo, and Ogden often include grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target revitalization neighborhoods or offer benefits for public service workers, such as teachers and first responders.
  • Eligibility requirements and assistance amounts vary by location.

Utah’s down payment assistance programs are designed to reduce financial barriers and make homeownership more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Beehive State.