Utah Housing Down Payment Assistance: All the Programs, Stacked and Explained

Utah has a substantial collection of down payment assistance programs, and most first-time buyers use only one — the one their lender mentioned. The reality is that several programs can be stacked together, and a buyer who knows the landscape can eliminate or dramatically reduce the cash needed at closing.

Here's how the major statewide programs work, what they cost to repay, and how to layer them.

Utah Housing Corporation: The Foundation

The Utah Housing Corporation (UHC) is the state's primary housing finance agency. Its programs don't work as standalone grants — they pair down payment assistance with a UHC first mortgage through an approved lender. You can't take the DPA without the UHC first mortgage, and UHC loans require completion of a HUD-approved homebuyer education course (eHome America works).

UHC FirstHome Loan

• Target: First-time buyers with incomes at or below UHC county limits (generally capped near $125,000 annually)
• Credit requirement: 660+ FICO
• Loan types: FHA, VA, or conventional
• Purchase price limits: County-specific UHC caps to keep the program in the affordable range

UHC HomeAgain Loan

• Target: Repeat buyers or first-time buyers who exceed FirstHome income limits
• Credit requirement: 660+ standard (620+ under specific FHA conditions)
• Loan type: FHA only
• Income cap: $151,900 statewide
• Notable: No maximum purchase price limit

UHC Score Loan

• Target: Buyers with lower credit scores or limited credit history
• Credit range: 620 to 659
• Loan type: FHA with flexible underwriting
• Interest rates: Slightly adjusted to reflect risk profile

UHC Down Payment Assistance (All Programs)

The DPA is structured as a second mortgage — not a grant. You can receive up to 6% of the first mortgage amount to cover down payment and closing costs. The interest rate is tied to your first mortgage rate, and repayment is fully deferred: no monthly payment, no repayment until you sell, refinance, or pay off the first mortgage.

On a $450,000 first mortgage, 6% DPA = $27,000. That can cover the entire down payment on a 3% conventional loan with cash left over for closing costs.

UHC S.B. 240 First-Time Homebuyer Assistance

This is a separate, larger program for buyers purchasing newly constructed, never-occupied homes. It provides up to $20,000 as a 0% interest deferred loan with no monthly payment. When you eventually sell or refinance, you repay the lesser of the original $20,000 or 50% of your home's equity at that time.

Key parameters:

• Must have been a Utah resident for at least 12 months prior to closing
• Purchase price strictly capped at $450,000
• Must use a UHC first mortgage through an approved lender
• Cannot be combined with UHC's law enforcement or VA-specific specialty grants

For a new construction buyer under the $450,000 cap, this program provides a meaningful principal reduction with zero carrying cost.

American Dream Grant: True Grant, No Repayment

The American Dream Grant is administered through the Salt Lake Board of Realtors and provides $10,000 as a true grant — no repayment required, no lien placed on the property.

Eligibility:

• Credit score of 640 or higher
• Household income at or below $141,400
• Must be purchasing a primary residence

Recipients are selected through a random quarterly drawing. Once awarded, you must close on a primary residence within 90 days. Because it's a lottery, you cannot plan around winning it — but if you're eligible, applying costs nothing. The value is real if your number comes up.

National Homebuyer's Fund (NHF)

Available through approved wholesale lenders, NHF provides up to 3.5% of the purchase price — capped at $22,500 — as down payment assistance. There's a 10-year forgivable option available, meaning if you stay in the home for 10 years the assistance is fully forgiven.

This program is accessible without being tied to UHC's first mortgage product, giving buyers more lender flexibility.

National Grant Program (NGP)

Also accessible through approved wholesale lenders, the NGP provides a 2% to 3.5% forgivable grant — up to approximately $26,000 in higher-cost counties. Requires FHA financing and a minimum credit score of 600.

Home Start Program

Provides up to $5,000 in down payment and closing cost assistance with a 5-year prorated retention period. Available through participating credit unions, including Nebo Credit Union.

SN Home Grant (Security National Mortgage)

Up to $25,000 in assistance, fully forgiven after 36 months of ownership. No income limits and no first-time buyer requirement. Available only through Security National Mortgage lenders.

HomeChoice Program (Disability Households)

For households where the buyer or a resident family member has a qualifying disability under the ADA, HomeChoice provides up to $70,000 as a 1% interest second mortgage amortized over 30 years. Critically, these funds are applied to reduce the principal balance of the first mortgage rather than toward the down payment — eliminating or significantly reducing PMI.

How Stacking Works (and Where It Doesn't)

Multiple programs can be combined. A typical stacking structure on a Wasatch Front purchase:

Lien position 1: UHC first mortgage Lien position 2: UHC DPA second mortgage (up to 6%) Lien position 3: County deferred assistance (varies by jurisdiction)

Davis County alone offers up to $50,000 in deferred assistance that stacks with UHC. A buyer who layers UHC's 6% DPA on a $400,000 mortgage ($24,000) with Davis County's $50,000 assistance has $74,000 in deferred-loan coverage — enough to cover a 5% down payment plus closing costs on most purchases in that price range.

Stacking restrictions:

• UHC S.B. 240 cannot be combined with UHC's law enforcement or VA-specific grants
• County programs typically require a minimum $1,000 of the buyer's own funds as earnest money
• Most programs cap post-closing liquid assets (e.g., $15,000) to ensure assistance goes to financially constrained households
• Properties purchased with public funds must pass a separate municipal health and safety inspection

The county-by-county breakdown — West Jordan, Davis County, Layton, Clearfield, Weber County, Ogden, and more — is covered in detail in the Utah First-Time Home Buyer Guide, along with the specific income limits, current funding status, and application steps for each program.

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