Utah First-time Homebuyers Assistance Program (New Construction)
$20,000
About the Program
Utah Senate Bill 240 (2023) created the First-time Homebuyers Assistance Program for allocation by Utah Housing Corporation. This bill provides Program funds to assist approximately 2,400 first-time homebuyers to purchase a newly constructed but not yet inhabited home. Up to $20,000 in Program funds can be borrowed for the home. Purchase Price not to exceed $450,000.
Funds are available until depleted.
First-time homebuyers must qualify for a Utah Housing Mortgage, with a Utah Housing Participating Lender.
FTHB Definition
A first-time homebuyer (FTHB) is an individual who a. (and whose spouse) has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property; or b. is a displaced homemaker, who except for owning a home with his or her spouse or residing in a home owned by the spouse, meets the requirement of a; or c. is a single parent, who except for owning a home with his or her spouse or residing in a home while married, meets the requirements of a.
Program Terms
- The Assistance Program (Program) loan is a 0% interest, no-monthly-payment loan secured by a recorded Deed of Trust and evidenced by a Subordinate Note.
- A FTHB must credit-qualify for a Utah Housing first mortgage with a Lender before the Lender may submit a Program reservation request.
- Income limits vary by Utah Housing loan program.
- A recipient must have been a resident of Utah for at least twelve (12) months prior to closing.
- A Program reservation request may be submitted whether or not an executed real estate purchase contract (REPC) is submitted with the request. The initial reservation period is 90 days, with the possibility of additional extensions.
- A Program loan cannot be combined with a Law Enforcement and Correctional Officer Grant or a Veterans Grant.
- A Program loan may be combined with a Utah Housing down payment assistance second mortgage. If not utilized, a rate reduction may be applied at the time of interest rate lock request (based on then-prevailing market conditions).
- If the recipient completes a future sale or refinance, the recipient shall repay an amount equal to the lesser of:
- the amount of assistance the recipient received, or
- 50% of the home equity amount:
- i. In the case of a sale, “home equity” is the bona fide sale price minus the unpaid principal balance of the qualifying mortgage loan(s).
- ii. In the case of a refinance, “home equity” is the current appraised value of the qualifying residential unit (as determined by a currently-licensed Utah certified residential appraiser) minus the unpaid principal balance of the qualifying mortgage loan(s).
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