Everyone dreams of owning their own home, but making that dream a reality is often harder than many young couples and families expect. Most mortgage loans require a good credit score, a sizable down payment, a reasonable DTI ratio, a steady income, and more — but when you’re just starting out, how can you be expected to have all of your ducks in a row?
Fortunately, with first-time home buyer programs in Utah, you don’t have to meet every single one of these requirements. The Utah Housing Corporation (UHC) offers several assistance programs to help you and your new family get into a home you love — even if you don’t have a down payment or perfect credit.
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Utah Housing First-Time Home Buyer Programs
Below are the Utah first-time homebuyer assistance programs offered by the UHC that help to make homeownership possible for more people. When used in conjunction with their down payment assistance, these programs help people buy homes with very little to no cash upfront and/or a less-than-perfect credit score. Take a look and see which one could be the solution you’ve been searching for.
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First Home Loan Program
- Purpose: Assistance with down payment and closing costs
- Eligibility: Must be a first-time home buyer, qualified veteran, or single parent with minimum credit score of 660+
- Conditions: Limitations on purchase price and household income; borrow up to 6% of the loan amount in the form of a second mortgage (with a 2% higher interest rate than primary mortgage loan) to cover closing costs and down payment
- Benefits: Get Utah Housing’s lowest interest rates; buy a house with no upfront cash
HomeAgain Loan
- Purpose: Assistance with down payment and closing costs
- Eligibility: Minimum credit score 660+ and cannot qualify for FirstHome program
- Conditions: For first-time and repeat home buyers; allows for higher income limits but may have higher interest rates; borrow up to 6% of the loan amount in the form of a second mortgage (with 2% higher interest rate than primary loan) to pay closing and down payment
- Benefits: Affordable interest rates; buy a house with no cash up front even if you can’t qualify for FirstHome program
Score Loan
- Purpose: Assistance with down payment and closing costs; approval with low credit score
- Eligibility: Must be able to prove low to moderate income; credit score of 620+
- Conditions: Income and home price limits; cost assistance in the form of a second mortgage for 4% of primary mortgage amount (with 2% higher interest rate than primary loan); must take buyer education course
- Benefits: Assists homebuyers who have recovered from previous credit challenges and can’t provide a substantial down payment or closing costs
NoMI Loan
- Purpose: Assistance with down payment and closing costs; eliminates mortgage insurance costs
- Eligibility: May be a first-time or repeat home buyer with a minimum credit score of 700+
- Conditions: Income and sales price limits; assistance in the form of a second mortgage
- Benefits: No monthly mortgage insurance payments or lower monthly mortgage payment
Down Payment Assistance
The down payment is one of the most common obstacles for people trying to obtain their first loan. Down payment assistance through a subordinate loan can be combined with any of the above loan programs to help you purchase your home. This way, you pay nothing out of pocket up front.
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Utah Veterans Grant Funds
If you are a first-time home buyer who has also served in the military, the Utah legislature has designated funds to help veterans buy houses in Utah. If you meet the eligibility criteria, you could get up to $2,500 in cash to put toward the home. This money does not need to be repaid.
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First-Time Home Buyer in Utah? Let’s Discuss Your Options
If you have any questions about these programs or want to know more about eligibility, Loan Remedy eagerly awaits your call. We specialize in helping first-time homebuyers qualify for mortgage loans that work for them, and we can’t wait to put our expertise to work for you. Get in touch with us today!
