Down Payment Assistance Programs in Utah (2026)

Last updated 05/20/2026 by

Ante Mazalin

Edited by

Andrew Latham

Fact checked by

Andy Lee

Summary:

Down payment assistance in Utah is administered primarily through Utah Housing Corporation (UHC), a state agency that pairs second-mortgage loans with its own first mortgage products to reduce the cash buyers need at closing.

Three active programs offer different trade-offs between payment flexibility and loan size.

UHC DPA Traditional: Up to 6% of the loan amount or $27,500, whichever is less, structured as a 30-year second mortgage with a monthly payment required.
UHC DPA Deferred: Up to 3.5% of the loan amount or $27,500, with no monthly payment; interest accrues at 3.5% and the full balance is due when you sell or refinance.
FTHB Assistance Program: Up to $20,000 at 0% interest with no monthly payment, available only on newly constructed homes for first-time buyers who have lived in Utah for at least 12 months.
Occupation grants: Utah funds grants for law enforcement officers (up to 3.5% of purchase price or $25,000) and veterans (up to $2,500), though both were fully subscribed as of May 2026.

Utah’s housing market moved fast over the last several years, and even buyers with stable incomes found the down payment gap difficult to close. These programs exist because the state recognized that the hardest part of buying in Utah is often the cash required upfront, not the monthly payment itself.

Whether you’re buying in Salt Lake County, Utah County, or St. George, every program listed here flows through UHC and an approved participating lender — so understanding how the system is structured will save you time before you start shopping.

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How Utah Housing Corporation programs work

Utah Housing Corporation is a public instrumentality of the state, not a bank. It does not make loans directly to buyers.

Instead, UHC sets program terms, funds the second mortgage, and requires buyers to work through an approved participating lender. Your lender manages the application; UHC services both the first and second mortgages after closing.

All UHC DPA programs attach to a UHC first mortgage. You cannot use a UHC second mortgage alongside a non-UHC first loan. The three available first mortgage types each carry their own interest rate and minimum credit score, and the DPA program you qualify for depends partly on which first mortgage you use.

Who qualifies for UHC programs?

Eligibility varies slightly by program, but the core requirements across most UHC loans include:

Household income at or below the program limit for your county
Purchase price at or below the program limit for your county
Must use a UHC-approved participating lender
Must occupy the home as a primary residence
Minimum credit score of 620 (FHA/VA), 660 (FirstHome), or 680 (Freddie Mac HFA Advantage)
FirstHome loans require first-time buyer status; FHA/VA and HFA Advantage do not
Completion of a UHC-approved homebuyer education course

Income and purchase price limits for the lower-rate FirstHome loan vary by county. Here are the limits for Utah’s most populated areas:

County	Max income (1–2 people)	Max income (3+ people)	Max purchase price
Salt Lake	$122,700	$141,100	$653,000
Utah	$142,400	$166,100	$763,100
Davis, Morgan, Summit, Wasatch, Weber	$141,300	$162,450	$772,400
Washington	$116,100	$133,500	$616,000
All counties (FHA/VA or HFA Advantage)	$162,500	FHA/conforming loan limits apply

Limits for all other counties are listed at utahhousingcorp.org/lenders/limits. Limits are typically updated annually; confirm current figures with your lender before applying.

UHC down payment assistance programs

UHC offers two DPA second mortgages suited to different cash flow situations. Both cap at $27,500 and both are serviced by UHC alongside your first mortgage.

Program	Maximum amount	Interest rate	Monthly payment?	Repayment
DPA Traditional	6% of loan / max $27,500	First mortgage rate +1% (max 8%)	Yes	Paid over 30 years; full balance due at sale, refi, or maturity
DPA Deferred	3.5% of loan / max $27,500	3.5% simple interest, deferred	No	Principal plus all accrued interest due at sale, refi, or maturity

UHC DPA Traditional (second mortgage with monthly payment)

The Traditional DPA gives buyers access to the larger amount — up to 6% of the loan or $27,500 — in exchange for a second monthly payment alongside the first mortgage.

The interest rate is set at 1 percentage point above your UHC first mortgage rate, with a ceiling of 8% and a floor equal to the first mortgage rate. Both loans are on 30-year fixed terms, and both are serviced by UHC.

This option makes the most sense for buyers who want maximum assistance and have the income to cover two mortgage payments comfortably. If monthly cash flow is a concern, the Deferred option may be a better fit.

UHC DPA Deferred (no monthly payment, interest accrues)

The Deferred DPA eliminates the second monthly payment entirely. You borrow up to 3.5% of the first mortgage or $27,500, and no payment is required until you sell, refinance, or reach the 30-year maturity date.

The trade-off is that interest accrues at 3.5% simple interest throughout the life of the loan. The amount owed at payoff will be meaningfully higher than the original balance, particularly if you stay in the home for many years.

If you plan to sell within five to ten years, the deferred option often costs less overall than a second mortgage with ongoing payments. If you plan to stay long-term, ask your lender to model the total cost of both options before deciding.

Can you combine DPA with the First-Time Homebuyer Assistance Program? Yes.

UHC allows buyers to stack the FTHB Assistance Program on top of either DPA second mortgage. In that case, the FTHB loan sits in third lien position. Ask your UHC lender to model both combinations before choosing, since the FTHB rate reduction benefit shifts the math depending on your loan size and down payment needs.

First-Time Homebuyer Assistance Program (new construction only)

The Utah Legislature appropriated $50 million to help first-time buyers purchase newly built homes, with the secondary goal of incentivizing builders to produce more affordable units across the state. UHC administers the program under Senate Bill 240.

Amount: Up to $20,000; may be applied to down payment, closing costs, and/or a permanent interest rate buydown on the qualifying mortgage
Rate: 0% interest, no monthly payment
Property type: New construction only (newly built, not yet occupied)
Eligible property types: Single-family homes, condos, townhomes, and manufactured or modular homes on permanent foundations
Max purchase price: $450,000 (may vary by location or home type)
Residency requirement: Must have lived in Utah for at least 12 months before closing
Can be combined with UHC DPA second mortgage: Yes — FTHB loan goes in third lien position
Cannot be combined with Veteran or LE grants
Slots remaining: Approximately 297 as of May 2026

Repayment uses a buyer-protective formula. At sale or refinance, you repay the lesser of (a) the original assistance amount or (b) 50% of your home equity at that time. If you’ve built little equity, you pay back less than you borrowed.

If you refinance into a new UHC qualifying mortgage loan, the FTHB loan can be resubordinated, meaning no payoff is required at that time.

Check slot availability before signing a new construction contract. The program has approximately 297 slots remaining as of May 2026. Slots can be reserved before construction finishes, but each reservation carries an expiration date. Confirm current availability at utahhousingcorp.org/lenders/grants before going under contract — if a program runs out, there is no waitlist.

Occupation grants for veterans and law enforcement

Utah funds two occupation-specific programs through UHC: a true grant for veterans and an assistance program for law enforcement and correctional officers. As of May 2026, both are fully subscribed and not accepting new applications.

Utah Veteran Grant

Amount: Up to $2,500
Repayment: None required
Who qualifies: Members of the military or veterans who separated within the last five years and are first-time Utah homebuyers
Lender requirement: No specific lender or loan program required
Status: Depleted as of February 23, 2026. As of publication, UHC’s website indicated applications are expected to reopen on or around August 3, 2026; confirm current status at utahhousingcorp.org/lenders/grants/.
Cannot be combined with the FTHB Assistance Program

Utah Law Enforcement and Correctional Officer Assistance Program

Amount: Up to 3.5% of the purchase price or $25,000, whichever is less
Who qualifies: Full-time Utah law enforcement officers or correctional officers as defined under Utah Code §§ 53-13-103 and 53-13-104; must be a first-time Utah homebuyer
Lender requirement: Must use a UHC-approved participating lender
Repayment terms: No interest, no monthly payment. The grant is forgiven pro-rata over 5 years — a share is forgiven each year the officer remains employed as a law enforcement or correctional officer in Utah and occupies the home as a primary residence. After 5 continuous years, the grant is fully forgiven and nothing is owed. If the home is sold, the officer leaves law enforcement, or the home is no longer owner-occupied before year five, the unforgiven balance must be repaid.
Status: Depleted as of April 7, 2026; UHC is no longer accepting new applications or waitlist requests
Cannot be combined with the FTHB Assistance Program

Both programs are funded by state legislative appropriations and may return when new funds are approved. Monitor utahhousingcorp.org/lenders/grants for current balances, or call UHC at (800) 284-6950.

Salt Lake County: local DPA resources

The Community Development Corporation of Utah (CDCU) offers down payment assistance as deferred loans to qualifying buyers in Salt Lake County. CDCU is a nonprofit housing counseling agency that applies for federal and private funding each year, so available amounts and geographic coverage vary depending on current grants.

CDCU’s DPA is open to first-time homebuyers (defined as no homeownership in the prior three years) who will occupy the home as a primary residence and can contribute at least $1,000 toward the purchase. The application process typically takes 25 to 30 days.

Contact CDCU at (801) 994-7222 or visit cdcutah.org to find out what programs are currently funded and for which geographic areas.

On May 13, 2026, the Salt Lake City Community Reinvestment Agency approved $6.4 million to expand affordable homeownership in Salt Lake City. Part of that funding supports CDCU’s Gladhouse 3 project, which will create eight affordable single-family homes for households at or below 80% AMI through a community land trust model, with a DPA, matched savings, and homebuyer counseling component. Groundbreaking is expected mid-2026.

How to apply for down payment assistance in Utah

All UHC programs require a participating lender. Work through these steps to reach closing.

Check your county’s income and purchase price limits. Visit utahhousingcorp.org/lenders/limits to confirm your household income and target price fall within the county limits. If you exceed FirstHome limits, check whether the FHA/VA or HFA Advantage tiers apply — both cap at $162,500 statewide.
Choose Traditional or Deferred DPA. If your income comfortably supports a second monthly payment, Traditional DPA gives you up to 6% of the loan. If cash flow is the priority, Deferred DPA eliminates the second payment but accrues 3.5% simple interest until payoff.
Check FTHB Assistance eligibility if buying new construction. If you’re buying a newly built home, have lived in Utah for 12 or more months, and haven’t owned a home in the last three years, check current slot availability at utahhousingcorp.org/lenders/grants before signing a purchase contract.
Find a UHC participating lender. Only UHC-approved lenders can access these programs. Search the directory at utahhousingcorp.org/homebuyer/participatinglenders.
Complete a UHC-approved homebuyer education course. Approved providers are listed at utahhousingcorp.org/homebuyer/education. Complete this early; some courses have waitlists and most programs require it before closing.
Get credit-qualified and request a program reservation. Once your lender confirms you qualify for a UHC mortgage, they submit a reservation request for the DPA or FTHB funds. FTHB reservations can be made before construction is complete.
Close and take occupancy. You must occupy the home as your primary residence within 60 days of closing. For new construction using the FTHB program, occupancy must occur within that same window.

Other ways to lower your down payment in Utah

FHA loans require as little as 3.5% down for borrowers with a 580 or higher credit score. UHC’s FHA mortgage can be layered with the DPA second mortgage, meaning eligible buyers can approach the purchase with minimal out-of-pocket cash. FHA loans carry mortgage insurance premiums for the life of the loan unless you refinance into a conventional product.

VA loans eliminate the down payment requirement entirely for eligible veterans, service members, and surviving spouses. UHC participates in VA lending with a 620 minimum credit score and a statewide income limit of $162,500. The VA funding fee still applies and can be rolled into the loan amount.

Jubilee is a leasehold homeownership model where you purchase the home itself but lease the underlying land from a community land trust, which results in a significantly lower purchase price. The trade-offs of leasehold homeownership include restrictions on resale price and appreciation, but for buyers priced out of conventional ownership in expensive markets, it offers a real path to building equity. Jubilee operates in select markets and is worth checking if it serves your area.

Down Payment Assistance in Other States

Programs vary significantly by state. Income limits, assistance amounts, forgiveness terms, and lender networks all differ. These guides cover verified program details for five other states.

Oregon: OHCS’s Flex Lending program provides 4–5% of the loan amount as a second mortgage paired with a fixed-rate first, and the OHCS DPA Program reaches up to $60,000 for first-time and first-generation buyers at or below 100% AMI.
New Jersey: NJHMFA provides $15,000 as a zero-interest second mortgage that becomes fully forgivable after five years of continuous occupancy.
Massachusetts: MassHousing provides $25,000 at 0% deferred, and ONE+ reaches up to $50,000 for buyers in 29 Gateway Cities.
Virginia: Virginia Housing’s DPA Grant delivers 2–2.5% of the purchase price as a true gift, never repaid. DHCD’s deferred loan reaches $50,000 for buyers at or below 60% AMI.
Florida: Florida Housing’s FL Assist provides $10,000 at 0% deferred for 30 years. Hometown Heroes reaches up to $35,000 for Florida workers. Orange County offers tiered assistance up to $70,000.

Key takeaways

UHC offers two DPA second mortgages: Traditional (up to 6% / max $27,500, monthly payment required) and Deferred (up to 3.5% / max $27,500, no monthly payment, 3.5% simple interest accrues until payoff).
The FTHB Assistance Program provides up to $20,000 at 0% for new construction only, with approximately 297 slots remaining as of May 2026. A 12-month Utah residency requirement applies.
FTHB can be combined with either DPA second mortgage (goes in third lien position); it cannot be combined with the Veteran or LE grants.
Both occupation programs are fully subscribed as of May 2026. The Veteran Grant (up to $2,500, no repayment) depleted February 23, 2026 and is expected to reopen around August 3, 2026. The LE Assistance Program (up to $25,000) stopped accepting applications on April 7, 2026 with no reopen date announced.
UHC income limits vary by county and by first mortgage type. FirstHome limits differ by county; FHA/VA and HFA Advantage both cap at $162,500 statewide.
All UHC programs require a participating lender from UHC’s approved directory. Your existing bank may not qualify.
CDCU offers locally funded DPA for Salt Lake County buyers. Amounts and availability vary by year and funding source; call (801) 994-7222 to check current programs.
VA loans eliminate the down payment requirement entirely for eligible veterans and pair with UHC’s VA mortgage (620 minimum credit score); the VA funding fee still applies and can be rolled into the loan.

Frequently asked questions

Can I use UHC DPA with an FHA loan?

Yes. UHC’s DPA second mortgage works with FHA, VA, and Freddie Mac HFA Advantage first mortgages. FHA loans require a 620 minimum credit score through UHC and carry a $162,500 statewide income limit. The DPA second mortgage sits in second lien position behind the FHA first.

Do I have to be a first-time buyer to use UHC DPA?

Not for the DPA second mortgage programs or for the FHA/VA and HFA Advantage first mortgages — those are open to repeat buyers. The FirstHome loan, which carries the lowest UHC rate, does require first-time buyer status (no homeownership in the prior three years). The FTHB Assistance Program also requires first-time buyer status under the Internal Revenue Code Section 143(d) definition.

What happens if I sell before the Deferred DPA is paid off?

The full outstanding principal plus all accrued simple interest is due at closing. Interest on the Deferred DPA accrues at 3.5% for the entire time you hold the loan, so the balance owed will be higher than the original amount borrowed. Your lender or UHC can provide a payoff estimate before you list the home.

Can I buy a condo or townhome with the FTHB Assistance Program?

Yes. Eligible property types include detached single-family homes, condominiums, townhomes, and manufactured or modular homes attached to a permanent foundation, as long as the unit is new construction and the purchase price does not exceed $450,000.

Are the occupation grants coming back?

The Veteran Grant is expected to reopen on or around August 3, 2026, when the Utah Department of Veterans and Military Affairs resumes issuing Validation Certificates for the new fiscal year. No reopen date has been announced for the LE Assistance Program. UHC’s website tracks remaining balances in real time at utahhousingcorp.org/lenders/grants. You can also contact UHC directly at (800) 284-6950.

Is there a recapture tax on UHC loans?

Some UHC programs use tax-exempt bond financing, which may carry a federal recapture tax if you sell the home within nine years with an income increase and a gain on the sale. UHC publishes an “Understanding Recapture” document at utahhousingcorp.org to help borrowers assess this risk. Ask your lender about recapture exposure before you close.

Compare mortgage lenders in Utah

Not every lender in Utah participates in UHC programs. Use SuperMoney to compare UHC-approved lenders alongside other mortgage options, and find the rate and terms that fit your purchase and your down payment strategy.

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