Assistance programs for First-Time home buyers

Utah offers several programs designed to help first-time homebuyers overcome financial barriers. These programs focus on down payment assistance, affordable mortgage options, and educational resources. Here’s an overview of key assistance programs available in Utah:

1. Utah Housing Corporation (UHC) Programs

The Utah Housing Corporation is a primary source of assistance for first-time buyers in Utah. Their programs are designed to help with down payments, offer competitive mortgage rates, and support low- and moderate-income households.

Key Programs:

• FirstHome Loan Program:
  • Specifically for first-time homebuyers.
  • Provides affordable fixed-rate loans with down payment assistance.
  • Income and purchase price limits apply.
• HomeAgain Loan Program:
  • Designed for repeat buyers but available to first-time buyers as well.
  • Offers down payment assistance with slightly more flexible requirements.
• Score Loan Program:
  • Targets buyers with lower credit scores.
  • Requires a slightly higher interest rate but still offers down payment assistance.

Down Payment Assistance:

• UHC programs provide loans for down payments and closing costs.
• Assistance is structured as a second mortgage with low monthly payments.

2. Federal Housing Administration (FHA) Loans

While not Utah-specific, FHA loans are popular among first-time buyers.

• Require a lower down payment (as low as 3.5%).
• More flexible credit score requirements (typically 580+).
• Buyers in Utah often pair FHA loans with state assistance programs.

3. USDA Rural Development Loans

For buyers in rural or suburban areas of Utah, USDA loans offer:

• Zero down payment.
• Low interest rates.
• Income limits apply, and the property must be in a USDA-eligible area.

4. Veterans Affairs (VA) Loans

If you’re a veteran or active-duty service member, VA loans offer:

• Zero down payment.
• Competitive interest rates.
• No private mortgage insurance (PMI) requirement.

5. Homebuyer Education Courses

Many assistance programs require completing a homebuyer education course. These courses teach budgeting, mortgage basics, and home maintenance.

Examples:

• Utah Housing Corporation’s Online Courses.
• NeighborWorks America: Offers HUD-certified courses and counseling.
• Community Development Corporations (CDCs): Local organizations provide workshops and individual coaching.

6. Local Programs by Cities or Counties

Certain cities or counties in Utah offer their own homebuyer assistance programs. Examples include:

• Salt Lake City Down Payment Assistance Program:
  • Provides loans of up to $15,000 for down payment and closing costs.
  • Zero-interest deferred loans (repayment due upon sale or refinance).
• Provo Housing Program:
  • Assistance for low-income families purchasing homes in Provo.
  • Offers affordable housing options and grants.
• Ogden Home Sweet Ogden Program:
  • Provides down payment assistance for homes purchased in designated revitalization areas.

7. Tax Benefits for First-Time Homebuyers

• Mortgage Credit Certificate (MCC):
  • Available through UHC.
  • Allows eligible first-time buyers to claim a tax credit on a portion of their mortgage interest.

How to Access These Programs

1. Contact Utah Housing Corporation:
   • Website: www.utahhousingcorp.org
   • Provides detailed program guides and participating lender information.
2. Work with Approved Lenders:
   • Many assistance programs require working with lenders certified by the administering organization.
3. Consult Local Housing Authorities:
   • Reach out to city or county housing departments for localized assistance.