Utah first-time homebuyer grants and down payment assistance (2026)

UHC’s two down payment seconds: 6% with payments or 3.5% deferred

Traditional DPA Second (repayable loan). UHC lends up to 6% of the first-mortgage amount for the down payment and closing costs, on any UHC loan program. It is an owner-occupied, 30-year fixed-rate second mortgage paid monthly ⁠⁶. Under the resolutions UHC’s board adopted on June 10, 2026, the rate is the first-mortgage rate plus 1% when the first mortgage is below 7%. When the first mortgage is above 7%, the rate is 8% or the first-mortgage rate, whichever is higher ⁠⁵. Any existing UHC loan must be paid off before you close ⁠⁶.

Deferred Down Payment Assistance (deferred loan). UHC told legislators in June 2025 that it was adding a 3.5% deferred down payment assistance program, which launched on July 1, 2025 ⁠⁵⁠⁸. It carries no monthly payment. In February 2026, UHC’s website still listed “Deferred Down Payment Assistance” as a current product ⁠⁹. The UHC fact sheet with its rate and due-date terms could not be opened for this guide. Ask your loan officer when the balance comes due and what it costs before choosing it over the 6% loan.

The $20,000 loan for newly built homes, and how much is left

The First-time Homebuyer Assistance Program comes from Utah Code 63H-8-502. It is a 0% loan with no monthly payment, recorded behind your UHC first mortgage and any UHC down payment second ⁠¹⁠²⁠³. The rules:

• Home. A house, condo, townhome or manufactured or modular home on a permanent foundation. It must be new construction never lived in, priced at no more than $450,000, and occupied by you within 60 days ⁠¹⁠³.
• Buyer. A first-time buyer under the federal three-year rule, meaning no ownership of a principal residence in the past three years. A single parent who owned a home only with a former spouse also qualifies. You must have lived in Utah for the 12 months before closing ⁠¹⁠².
• Use. Up to $20,000 for the down payment, closing costs or a permanent rate buydown. No cash goes back to you at closing ⁠¹.
• Repayment. When you sell or refinance, you repay the smaller of the amount you received or 50% of your home equity. Refinancing into another UHC loan that keeps the program loan in place triggers no repayment ⁠¹⁠³.

You can combine it with UHC’s down payment second, which puts it in third lien position. If you skip the second, UHC may lower your first-mortgage rate. You cannot combine it with the officer or veterans programs ⁠³.

The Legislature has put $80 million into the program: $50 million in 2023, $20 million in 2025 and $10 million in 2026 ⁠³⁠⁴. As of Sept. 10, 2026, UHC had funded 3,516 reservations totaling $70,137,224, and 95 more ($1.9 million) were approved and waiting for funds. It reported 431 reservations remaining, 46 of them still awaiting approval ⁠⁴. In June 2026, UHC projected that the money would be fully spent by the end of 2026 or early 2027 ⁠⁵. Funds are reserved first come, first served ⁠². A reservation lasts 90 days. UHC can extend it in 120-day steps once a specific home is identified and the lender sends status updates ⁠².

FirstHome, FHA/VA or HFA Advantage: credit floors and first-time status

Every UHC down payment loan rides on one of three UHC first mortgages ⁠⁶:

Scroll the table sideways to see every column.

UHC says FirstHome usually has the lowest interest rates but lower income and price limits. FirstHome made up 57.5% of UHC’s 22,119 first mortgages on Aug. 31, 2026 ⁠⁴⁠⁶.

On FirstHome and FHA/VA, an occupant co-borrower with no credit score may be allowed. FHA/VA loans can finance a home with up to two units, and you may rent one of them ⁠⁶. The UHC documents available for this guide list no separate debt-to-income cap. You must qualify under the FHA, VA or conventional rules your lender applies ⁠⁶.

Mortgage credit certificates: UHC’s administrative rule lets it issue them “from time to time” ⁠². No MCC appears among UHC’s products in its 2024 legislative briefing or its 2026 board reports ⁠⁴⁠⁷. Ask a participating lender before counting on one.

Finding your county’s income and purchase price limit

By rule, UHC’s president sets income limits for each program, up to 140% of the HUD area or state median income. The limits can vary by loan program, household size, county and targeted area ⁠². UHC posts them on its “Income and Purchase Price Limits” page ⁠⁹. That page could not be loaded for this guide, so no county figures appear here. To find yours:

1. Ask a participating lender for the current UHC limit for your county and household size. Income counts every person who will sign the deed of trust ⁠⁹.
2. On FirstHome, check the purchase price cap too. FHA/VA and HFA Advantage have no UHC price cap ⁠⁶.
3. For the $20,000 program, the income limit is that of the UHC loan you use, and the price cap is $450,000 statewide ⁠³.

For scale, the average buyer in the $20,000 program earned $91,396 and paid $388,098 ⁠⁴.

Officer and veteran money on top of a Utah Housing loan

• Utah First-Time Homebuyer Law Enforcement Program (forgivable loan). Law enforcement officers and correctional officers, as defined in Utah Code 53-13-103 and 53-13-104, can get up to $25,000 at 0% with no payment. A share is forgiven each year you work as an officer in Utah and live in the home, with 5 years of service required. It requires a UHC first mortgage and can be combined with UHC’s down payment second. The first-time rule may be waived in some cases ⁠¹¹. UHC’s 2024 briefing described the amount as 3.5% of the first mortgage, up to $25,000. The program received $5 million in 2022, $3 million in 2024 and $3 million in 2025 ⁠⁷⁠⁸. Email [email protected] for current funds ⁠¹¹.
• Utah Veteran First-Time Homebuyer Grant (grant). This $2,500 grant is for veterans who separated within the last 5 years and for current Active Duty, Reserve and Guard members who are eligible for a VA loan certificate. You must be a first-time buyer in Utah, and owning a home in another state does not disqualify you. Unlike the other programs, any Utah-licensed lender and any conforming loan type works. Send the package to UDVMA at least 10 business days before closing, and the required documents to UHC at least 5 business days before ⁠¹². The grant depends on legislative funding. From 2018 to 2024, 1,019 grants were paid ⁠⁷.

City programs in Ogden, Salt Lake City and Provo

Ogden, Own in Ogden (deferred loan). This 0% loan is due in full when you sell, refinance or stop living in the home. It pays $10,000 for any eligible buyer, $15,000 for K-12 teachers serving Ogden students and for city employees, and $20,000 for Ogden police officers and firefighters. Household income must be at or below 80% of AMI: $66,050 for one person, $94,300 for four and $124,500 for eight (effective June 1, 2026). The price cap is $430,000 for an existing home or $467,000 for a new one. You need $500 of your own money, a HUD-certified homebuyer education certificate, and no cash back at closing. The city says the program is open but expects a pause from late October through December 2026 ⁠¹³.

Salt Lake City, CRA down payment loan through CDCU (deferred loan). The Community Development Corporation of Utah runs the Salt Lake City Community Reinvestment Agency’s silent second mortgage. It is for first-time buyers (no home owned in 3 years) under 80% of AMI who are buying in Salt Lake City. Expect to contribute at least $1,000 and to wait 25 to 30 days for processing. Awards go first come, first qualified, and CDCU does not post an amount, so ask its intake staff what is funded ⁠¹⁴.

Provo, Home Purchase Plus and Loan to Own (deferred loans). On Provo’s page as captured in September 2025, both programs were accepting applications. Home Purchase Plus paid up to $60,000 in Provo. Loan to Own paid up to $40,000 anywhere in Utah County except Eagle Mountain, Fairfield, Highland and Woodland Hills. Both are 0% deferred, with half forgiven if you live in the home for the whole affordability period: 5 years for up to $25,000, 10 years above that, and 15 years above $50,000. Requirements included a 650 mid credit score, a $1,000 contribution, no more than $15,000 in liquid assets after closing, and education for every borrower. You apply at neighborly.provo.org once you have a contract ⁠¹⁵. Provo’s site blocked automated checks on Oct. 20, 2026, so confirm the 2026 limits with the city.

Getting a Utah Housing loan through a participating lender, step by step

1. Decide between a new and an existing home

   Only new, never-occupied homes at $450,000 or less qualify for the $20,000 loan. Existing homes use UHC’s 6% or 3.5% second ⁠¹⁠⁶.

2. Choose a participating lender

   UHC lists the lenders that offer all its purchase programs. Its top originators include Intercap Lending, Guild Mortgage, SecurityNational Mortgage, Plains Commerce Bank and First Colony Mortgage. Tell the loan officer you want a Utah Housing loan ⁠⁹.

3. Get credit-qualified

   You need a 660, 620 or 700 score depending on the program. The lender also checks UHC’s income limit and, for FirstHome, the price limit ⁠⁶.

4. Take a homebuyer course if needed

   UHC accepts Freddie Mac CreditSmart, which is free online and takes 4 to 6 hours, or an 8-hour class from a HUD-approved agency. The conventional loan, Ogden and Provo require one ⁠⁶⁠¹⁰⁠¹³⁠¹⁵.

5. Reserve the $20,000 early if you are building

   The lender can request a reservation before you pick a home. If no specific home is identified within 90 days, the reservation is canceled ⁠²⁠³.

6. Add the officer, veteran or city money

   Veterans send the UDVMA package 10 business days before closing ⁠¹². City programs have their own applications ⁠¹³⁠¹⁴⁠¹⁵.

7. Close and keep the notes

   Keep the second-lien notes and any program deed of trust. You will need them when you sell or refinance ⁠³.

If one lender turns you down, another participating lender can review your file, and CDCU’s HUD-certified counselors can help ⁠¹⁴. Compare other states on the first-time homebuyer grants page.