Down Payment Assistance in Utah

What is down payment assistance in Utah?

Utah’s rapid growth has driven home prices up fast, but the right down payment assistance can turn homeownership from a stretch into a real plan.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the red rock canyons of the south to the snow-capped peaks of the Wasatch Range, Utah homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Utah or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Utah

The Utah Housing Corporation (UHC) is the state’s housing finance agency and the central source for statewide DPA programs. UHC doesn’t lend directly to buyers. Homebuyers apply through a UHC-approved participating lender who will combine the assistance with the mortgage.

UHC Down Payment Assistance Programs

The UHC offers three different down payment assistance programs, but homebuyers must first qualify for a UHC first mortgage home loan. Buyers must be approved by a participating lender, who will then determine how much down payment and closing costs assistance you need. DPA programs can be used with FHA, VA, or Freddie Mac financing.

Traditional DPA: With this program, an eligible homebuyer may receive up to 6% of the first mortgage loan, not to exceed $27,500. The second mortgage is offered as a 30-year, fixed-rate loan with an interest rate of 1% higher than the first mortgage interest rate, not to exceed 8%. A monthly payment is required.

Deferred DPA: With this program, an eligible homebuyer may receive up to 3.5% of the first mortgage loan, not to exceed $27,500. The second mortgage loan is a 30-year, fixed-rate of 3.5% deferred simple interest. No monthly payments are required. The principal and deferred interest are due upon maturity, sale, or refinance of the property.

First-Time Homebuyer (New Construction): With this program, eligible homebuyers may receive up to $20,000 in assistance and the funds may be used toward down payment, closing costs, or a permanent interest rate buydown.

Minimum credit score varies, depending on first mortgage loan, i.e. FHA and VA mortgages require a minimum credit score of 620.

Beyond UHC’s statewide programs, several Utah cities and counties have established their own DPA programs. Many of these can be stacked with UHC assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Provo down payment assistance programs

Provo sits at the base of the Wasatch Range, home to Brigham Young University and a young, fast-growing population. Nearby canyons and Utah Lake give buyers easy access to hiking, skiing, and outdoor recreation year-round, all within a short drive of city amenities. 

Provo down payment assistance programs include:

• Home Purchase Plus Program: This down payment assistance program provides up to $60,000 in assistance to eligible homebuyers purchasing a home in Provo.
• Loan To Own Program: This down payment assistance program provides up to $40,000 in assistance to eligible homebuyers purchasing a home in Utah County, excluding Fairfield, Woodland Hills and Highland cities.

All Provo DPA programs have the same following requirements:

• Household income must be at or below 80% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development
• The second mortgage loan is offered at 0% interest and deferred payment, with no payments due until the property is no longer the primary residence. Borrowers may be eligible for 50% loan forgiveness if the property remains the primary residence for the entire period of affordability. For example, at five years, $15,000 to $25,000 of the assistance is forgiven.
• Must qualify for a first mortgage and have a property under contract before applying
• Only fixed-rate mortgages are permitted
• Both spouses/partners are required to be on the loan
• Proof of U.S. citizenship or permanent residency required for all household members residing in the property
• Minimum credit score of 650
• Applicant must contribute at least $1,000 of their own funds
• Completion of a homebuyer education course
• This program is on a first-come, first-serve basis

Davis County down payment assistance program

Davis County sits between Salt Lake City and Ogden along the shores of the Great Salt Lake, offering easy access to both metros without the price tag of either. Family-friendly suburbs like Layton and Bountiful, paired with nearby hiking trails and lake views, make it a popular choice for buyers wanting space and convenience along the Wasatch Front. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Salt Lake City.)

Davis County down payment assistance program includes:

Homeownership Assistance Program: The program offers up to $50,000 in assistance that can be used for any combination of principal reduction, permanent interest rate buydown (up to $10,000), and/or up to 50% of the required down payment and closing costs. These loans have no payments and are only repaid (plus 1% interest compounded annually) when the home is sold or refinanced.

Program requirements include:

• Household income must be at or below 80% AMI
• Property must be located within Davis County and occupied as the primary residence
• $1,000 borrower contribution and cash reserve to cover one month of housing expenses
• Must have a fully executed contract and pre-qualification letter from a lender when submitting application
• Completion of homebuyer education course
• Purchase price cannot exceed $500,000
• Eligible with FHA, Conventional, USDA, and VA loans

Midvale down payment assistance programs

Midvale sits in the heart of the Salt Lake Valley, offering a central location with easy access to Salt Lake City, ski resorts, and major highways in every direction. A revitalized downtown along Main Street, paired with more affordable housing than many surrounding suburbs, makes it a solid pick for buyers wanting convenience without the higher price tag. (Cities like this are typically part of a larger metropolitan area — in this case, Greater Salt Lake City.)

Midvale down payment assistance program includes:

Down Payment Assistance Program: The program provides up to $25,000 in down payment and closing cost assistance for income-eligible first-time buyers within Midvale city limits. The funding is provided as either a 5-year forgivable loan or grant, with a 20% reduction each year. The funds may be used for down payment, closing costs, single-pay mortgage insurance, or mortgage interest rate buydown. Repayment of the loan/grant occurs if the property is sold before the five-year term, the property is not owner-occupied within 30 days of closing, or the property is renter and the borrower does not occupy the home during the 5-year term.

Program requirements include:

• Must be a first-time homebuyer
• Household income must be at or below 80% AMI
• Property must be located within city limits
• Completion of a homebuyer education course
• Must occupy the home as a primary residence during the loan/grant term
• Cannot have more than $20,000 in any account

These are the main down payment assistance programs available across Utah. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Utah down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at utahhousingcorp.org. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. UHC programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Utah property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Utah down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}