Down Payment Assistance Programs in Utah

Down Payment Assistance Programs are federally funded programs that are typically available on a county or city basis. They provide funds to several different types of borrowers. The following section lists a quick start guide to know if you may qualify for a down payment assistance program and whether you should spend time and effort seeking one out.

Who Qualifies For Down Payment Assistance?

• First-Time Homebuyers.
• Borrowers who haven't owned a home in 3 years.
• Borrowers whose only home was owned jointly with an ex-spouse.

Income Limits

Income limits are based on 80% of the average annual income for that particular area. The average annual income is higher in Salt Lake City vs other counties / cities. You will want to check the income limits of the particular program that you are seeking to see if you qualify. The other thing to consider is that anyone who will be living in the house will contribute to the income limit.

Grant or Loan?

Whether the program is a grant or a loan you have to pay back is dependent on the particular program that you apply for. For example, Own in Ogden is a silent 2nd mortgage. You are required to pay the amount back in full no matter how long you have lived in the home. The down payment assistance helps you have a lump sum and lower the barrier of entry up front. You have to pay it back on the back end but as long as you plan to live in the home for a long time, you will have more than sufficient equity to pay the loan back when you sell your home.

Layton City's At Home in Layton program is a grant. The down payment assistance is forgiven if you live in the house for 5 years and is not required to be paid back. If you were to sell or move sooner than the 5 years, you would pay back a pro-rated amount based on the time you lived in the home.