For many individuals and families, owning a home is a cherished dream, but the financial hurdles involved can make it seem out of reach. Recognizing the importance of affordable housing, the Utah Legislature has taken a significant step toward helping first-time homebuyers realize this dream.
Appropriating $50 million, the Utah Housing First-Time Homebuyers Assistance Program aims to assist first-time homebuyers and incentivize builders to produce affordable housing units throughout the state.
Qualifying homebuyers have the opportunity to receive up to $20,000 in program assistance. These funds can be utilized for various purposes, including:
- Down payment
- Closing costs and/or
- A permanent interest rate buy down for the qualifying mortgage loan
This financial assistance can alleviate the burden of upfront costs and help bridge the gap between aspiring homeowners and their homeownership goals.
The program also incentivizes builders to produce affordable housing units throughout the state. By allocating funds toward the development of affordable housing, the program encourages the expansion of housing options that are within reach for lower-income families and individuals. This emphasis on affordable housing not only helps address the immediate needs of the community but also creates a lasting impact by promoting long-term housing stability.
To participate in the program, homebuyers must meet certain eligibility criteria. While the specific requirements may vary, they typically include factors such as income limits, creditworthiness, and completion of a homebuyer education course. These criteria are designed to ensure that the program benefits those who genuinely need assistance and are committed to responsible homeownership.
- The home must be in Utah and you must be a Utah resident for at least 12 months prior to closing.
- The home must be new construction or newly built and can be a single-family, condo, townhome or a manufactured/modular home attached to a permanent foundation.
- The maximum purchase price is $450,000.
- The program cannot be used in conjunction with Utah Housing's Law Enforcement or VA grants.
How to Apply
As a participating Utah Housing lender, Bank of Utah can help you get preapproved for and finalize your mortgage loan, and apply for the Utah Housing assistance program. Contact one of our experienced loan officers to learn more.
For eligibility requirements and answers to other frequently asked questions, visit the Utah Housing Corporation's website here.
Eric DeFries is the Senior Vice President, Residential Lending, for Bank of Utah. Originally from Layton, he has been in the finance industry for 18 years and with Bank of Utah for 14 years. He serves on the Board of Commissioners for the Ogden Housing Authority.