Utah First-Time Home-Buying Assistance Programs
(Last Updated – 06/2025)
Utah is known for its amazing landscapes and parks, and it can also be a terrific place to live, amid all that natural beauty. But it’s not necessarily a cheap place to buy a property. The average home value is currently $538,898 vs. the average national value of $367,711, according to Zillow. For some first-time homebuyers in Utah, the high cost of housing can make putting down roots a challenge.
Fortunately, first-time homebuyers in Utah may be able to get some financial help through programs offered by the state and some cities and counties. There are also longstanding federal programs that could improve a buyer’s chances of success, as well as other options. Take a closer look at some of the opportunities here.
Who Is Considered a First-Time Homebuyer in Utah?
The answer to that question isn’t as obvious as it seems. For most programs offered in Utah and elsewhere, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years.
Additionally, some programs may make exceptions for veterans, single parents, and others. It’s a good idea to be clear on specific eligibility standards before you start any application.
💡 Quick Tip: Buying a home shouldn’t be aggravating. Online mortgage loan forms can make applying quick and simple.
6 Utah Programs for First-Time Homebuyers
The Utah Housing Corporation (UHC), also known as Utah Housing, provides several assistance options for first-time buyers who might need help affording a house, whether that concerns the specifics of their loan and/or coming up with a down payment.
Because the programs were established to assist low- to moderate-income buyers, participants may have to meet certain income limits and other criteria. There also may be a limit on how much the purchased home can cost. For more information about most of these programs, visit the Utah’s Housing website and the UHC Matrix PDF. An approved lender can help you get started with an application.
These programs (some of which may also be available to repeat buyers) include:
1. Utah Housing FirstHome Loan Program
If you’re a first-time homebuyer with a modest income looking for a low interest rate, the FirstHome Loan program may be for you. This program typically offers the UHC’s lowest available interest rate on a first mortgage, which may be paired with the UHC’s DPA Second loan, a second mortgage for up to 6% of the primary loan amount to help with down payment and closing costs. The FirstHome program is available only to qualifying first-time homebuyers (including some single parents and veterans) who have a credit score of 660 or higher and meet income and purchase price limits.
2. Utah Housing FHA/VA Loan Program
The FHA/VA Loan program, which replaces the HomeAgain and Score programs, may help families who have recovered from previous credit challenges purchase a home. The program provides borrowers with a first mortgage and the opportunity to apply for a second mortgage loan. It’s available to both first-time and repeat buyers.
Applicants must have a minimum credit score of 620 and meet UHC income guidelines.
3. Utah Housing Freddie Mac HFA Advantage Loan
This conventional loan offers first-time and repeat homebuyers with strong credit scores mortgages that may have a slightly higher interest rate than other UHC options, but typically have lower mortgage insurance premiums as well, which may result in overall lower monthly payments. The property must be owner occupied.
Applicants must have a credit score of 680 or higher and must meet income criteria. At least one homebuyer must complete a homebuyer education course before the closing.
4. Utah Housing Down Payment Assistance Second Mortgage
As already mentioned, some homebuyers with a Utah Housing loan may also be eligible to get a second mortgage to help defray down payment and closing costs. As of July 1, 2025, this option will take two forms, Traditional and Deferred.
For the Traditional option, the homebuyer may be able to borrow up to 6% of their primary loan, up to $27,500. This will be a 30-year fixed-rate loan with an interest rate 1% higher than their primary mortgage (up to 8.00%).
The Deferred option provides 3.5% of the primary mortgage, up to $27,500. It’s also a 30-year fixed loan at a rate of 3.50% deferred simple interest. There are required payments but the loan comes due upon maturity, sale of the home, or refinancing.
5. First–Time Homebuyer Program Assistance (New Construction)
In 2023, the Utah legislature funded this program to support first-time homebuyers and to encourage the building of new affordable housing units in the state. Qualifying first-time homebuyers who are purchasing newly constructed or never-before-lived-in homes can receive up to $20,000 to help pay for their down payment, closing costs, and/or a permanent interest rate buy-down for their primary mortgage loan. Funds are limited and available on a first-come, first-qualified basis. Property price limits and a residency requirement of one year in Utah prior to purchase apply.
6. Utah Housing Veterans First-Time Homebuyer Grant
Utah Housing has a grant program that benefits qualifying Utah service members or veterans who have served within the last five years who are first-time homebuyers in Utah (have not owned a home in Utah in the past seven years). The grant is for $2,500, and it doesn’t necessarily have to go toward the recipient’s down payment and closing costs.
Homebuyers can choose any conforming mortgage type, such as VA, FHA, Fannie Mae, or Freddie Mac, and can use any lender licensed to originate mortgages in Utah. They must obtain Veterans Grant Status Validation from the Utah Department of Veterans and Military Affairs, and the lender must receive a Veterans Grant Reservation Agreement from Utah Housing prior to closing. Funds are limited, so it’s important to pay attention to all deadlines.
For more information, visit the UHC’s veteran grants webpage: You can also contact the Department of Veterans and Military Affairs at 801‑326‑2372.
To apply, take your Veterans Grant Status Validation to any lender licensed to originate loans in Utah and ask about a Utah Veterans Grant.
Other Utah Homebuyer Programs by Location
If you already know which Utah community you hope to make your home, you also may want to research local first-time homebuyer programs. If you can’t find assistance in your chosen location, you may want to check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.
At Home in Layton Down Payment Assistance Program
Layton City offers the At Home in Layton Down Payment Assistance Program to income-eligible first-time homebuyers. The assistance comes in the form of a grant in $10,000 increments that can be used for a down payment, closing costs, or principal reduction. If the purchased home is sold before the end of the fifth year after closing, all or a portion of the grant may have to be repaid to the city.
The next round of funding is set to become available on July 1, 2025. Funds are limited, and applications are accepted on a first-come, first-served basis, so it’s wise to check and see what is available. For more information, you can check out the program’s web page or go to the brochure for application guidelines . Contact the Layton City Community Development Block Grant administrator at 801-336-3770 or [email protected].
Own in Ogden Loan Program
The Own in Ogden loan program provides qualifying first-time and repeat homebuyers with a 0% interest, deferred-payment second loan for their down payment or closing costs. The loan also can be used to reduce the principal on the buyer’s first mortgage. Income and purchase price limits may apply. Please note: At present, the program is accepting applications, but they cannot be funded until July 1, 2025.
• Homebuyers can receive $10,000 to purchase a primary residence in Ogden.
• State-certified K-12 classroom teachers or administrators in schools that serve city students can receive a $15,000 loan.
• Ogden employees and new hires who don’t currently live in the city can receive a loan of up to $15,000 to help them move there .
• Ogden police officers and firefighters can receive a $20,000 loan.
Income and purchase limits apply. For more information, you can go to the program’s web page or view the program brochure for application guidelines .
Provo Home Purchase Plus Program
The Provo Home Purchase Plus Program offers eligible homeowners the opportunity to apply for a 0% interest, deferred-payment second loan to help pay their down payment and closing costs. Payment is due in full when the borrower no longer lives in the home as their primary residence. (If the home is sold or vacated within two years of purchase, there may be a $5,000 penalty.)
Income limits, asset limits, credit requirements, and purchase price limits apply, and all household members over 18 must pass a background check. For more information, check out the program’s web page or call 801-852-6162.
Utah County Loan to Own Program
Utah County’s Loan to Own program provides down payment assistance to moderate-income first-time homebuyers in the form of a 0% interest, deferred-payment second loan. This loan is available up to $40,000 currently. The loan must be repaid if the owner vacates or sells the property, and there is a $5,000 penalty if the owner does so within two years of closing.
This program is available countywide except for Eagle Mountain, Alpine, Fairfield, and Provo. Income limits, credit requirements, and purchase price limits apply. You can get more information at the program’s web page or call the Housing Authority at Utah County at 801-373-8333.
How to Apply to Utah Programs for First-Time Homebuyers
If you are interested in any of the above programs for first-time homebuyers in Utah, Follow the links relevant to each program to check what funding is available and find an approved lender or other contact.
Recommended: Understanding Mortgage Basics
Federal Programs for First-Time Homebuyers
Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be particularly helpful to people who are buying a first home or who haven’t owned a home in several years.
The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Here are some details to note:
• Loans have competitive interest rates and require a down payment of 3.5% of the purchase price from borrowers, who typically need FICO® credit scores of 580 or higher. Those with low credit scores (between 500 and 579) must put at least 10% down.
• In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, which is your monthly debt payments compared with your monthly gross income). FHA loans allow a DTI ratio of up to 57% in some cases, vs. a typical 45% to 50% maximum for a conventional loan.
• Using gift money for the down payment is allowed if it’s from certain donors and will be documented in a gift letter for the mortgage.
• FHA loans always require mortgage insurance — a 1.75% upfront fee and annual premiums for the life of the loan — unless you make a down payment of at least 10%, which allows for the removal of mortgage insurance after 11 years.
Interested in finding out moreJ? You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
The Home Possible mortgage is for buyers who have a credit score of at least 660.
Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, visit this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. A few specifics:
• Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
• VA loans do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%.
• These loans have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
💡 Quick Tip: Apply for a VA loan and borrow up to $1.5 million with a fixed- or adjustable-rate mortgage. The flexibility extends to the down payment, too — qualified VA homebuyers don’t even need one!†^
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. Learn more about this mortgage option by emailing [email protected].
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
This program helps those in certain professions (such as police officers, firefighters, emergency medical technicians, and teachers) qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. For more information, visit the HUD program page.
First-Time Homebuyer Stats for 2025
Ever wonder where you fit amid the mix of buyers who are out there shopping for their first home (or the first one in a while)? Here are some stats to check out:
Percentage of buyers nationwide who are first-time buyers: 24%
Average credit score of a first-time homebuyer in the U.S.: 715
Average credit score in Utah: 730
Median age of a first-time homebuyer: 38
Average home value in Utah: $538,898
3% down payment: $16,167
20% down payment: $107,780
Additional Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. The IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal.
If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals can take a bite out of your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years.
Take note: With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against your 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, in a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account.
You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have longer to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state.
If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.
• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home-buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
Utah has an array of state and local assistance programs for low- to moderate-income first-time homebuyers. This can be in the form of help with a down payment, mortgage, and/or closing costs. Other first-time buyers may find an affordable choice among the various federal and commercial mortgages available.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.FAQ
Should I take first-time homebuyer classes?
These classes can be advantageous, as they share valuable intel on the home-buying process. In addition, these classes are required for many government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often they do. Many government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications.
What credit score do I need for first-time homebuyer assistance in Utah?
Utah Housing’s credit score requirements range from 620 to 660, but requirements for other programs vary, and some may use criteria other than credit scores to determine a borrower’s eligibility. You can check with the organization or lender offering first-time homebuyer assistance to get specific financial requirements.
Is there a first-time veteran homebuyer assistance program in Utah?
Utah Housing offers a first-time homebuyer grant program that’s specifically for veterans. Then there are VA loans, available nationwide to eligible active-duty members of the military, veterans, reservists, and surviving spouses.
What is the average age of first-time homebuyers?
The median age is 38, according to recent data.
Photo credit: iStock/DenisTangneyJr
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