Para Compradores
Utah offers some of the most comprehensive home buyer assistance programs in the country — state-backed loans, down payment help, and federal options that make homeownership more achievable than you may think.
Overview
Whether you’re buying your first home, haven’t owned in a few years, or are a veteran or rural buyer, there is very likely a program designed to reduce your upfront costs or qualify you for a better rate. Utah’s primary programs are administered by the Utah Housing Corporation (UHC), a state agency created specifically to expand homeownership access. Layered on top of those are federal programs — FHA, VA, and USDA — that work alongside or independently of UHC assistance.
Judy Beltran works with buyers across all of these programs and can help you identify which combination gives you the best path to ownership based on your income, credit, location, and goals.
Program 1 — Utah Housing Corporation
The Utah Housing Corporation (UHC) is a state agency created by the Utah Legislature in 1975. It’s not a bank and not a private lender — it’s Utah’s housing finance agency. UHC sells bonds to raise capital and uses that money to offer below-market mortgage rates to qualifying buyers. Every loan still goes through a private lender, but UHC buys the loan from that lender — which is how they can offer rates lower than the open market.
The FirstInicio Loan is UHC’s flagship product, consistently offering the lowest interest rates among all UHC programs. When paired with their DPA Second loan, buyers can cover the down payment entirely — closing with little to no money of their own.
A 30-year fixed-rate mortgage available to first-time homebuyers, qualifying single parents, and eligible military veterans. The FirstInicio program is a rate-subsidy layer on top of a standard loan product — it supports FHA, VA, USDA, or conventional structures underneath it.
Income and purchase price limits vary by county and household size — verify current limits at utahhousingcorp.org or ask a UHC-approved lender before shopping.
This is where the “zero out of pocket” story lives. As of July 1, 2025, UHC’s DPA Second comes in two forms:
Borrow up to 6% of the primary loan amount, capped at $27,500, as a 30-year fixed-rate second mortgage at an interest rate 1% higher than your first mortgage, capped at 8%. You do have a small second monthly payment.
30-year fixed at 3.5% deferred simple interest with no monthly payment required. Principal and deferred interest are due at maturity, sale, or refinance. This is the version that results in zero extra payment each month while you live in the home.
Who Is Eligible
What It Does Not Cover
Program 2 — Utah Legislature
The Origin Story
In 2023, Utah Senate President J. Stuart Adams sponsored and passed Senate Bill 240 with a single stated goal: keep Utah from becoming a state of renters. The Legislature allocated $50 million to help an estimated 2,400 families purchase homes. As of January 30, 2026, UHC has awarded these loans to 2,934 households, with the average loan totaling $19,948 — meaning nearly every recipient took the full $20,000. Senate President Adams returned to the Legislature in February 2026 requesting an additional $10 million to continue the program.
S.B. 240 is a government loan — not a grant — but it functions almost identically to one while you are living in the home. It carries 0% interest, requires no monthly payment, and sits quietly behind your first mortgage as a subordinate lien.
The interest rate buydown option is underused and worth discussing with your loan officer. Instead of applying the $20,000 to the down payment, a buyer can permanently reduce their mortgage rate for the life of the loan — on a 30-year mortgage that can mean tens of thousands of dollars saved in interest. Run both scenarios before deciding.
When you sell or refinance, you repay the lesser of: the amount of assistance received, or 50% of your home equity at that time.
Example: if you borrowed $20,000 and your equity at sale is only $30,000, you owe 50% of $30,000 = $15,000 — not the full $20,000. The program is designed so it never takes more than half your equity gain.
If you refinance into a new UHC qualifying mortgage, the program loan can be resubordinated — meaning no repayment is triggered at that time. Refinancing within the UHC system does not automatically require payback.
A qualifying home must be new construction or newly constructed but not yet inhabited, priced at or below $450,000, owner-occupied within 60 days of purchase, and financed by a UHC qualifying mortgage.
Senate President Adams was asked about removing the new-build requirement and specifically declined. That stipulation intentionally incentivizes new housing stock that Utah desperately needs — so this requirement is by design and unlikely to change.
Note on H.B. 541: A 2026 bill was introduced to expand the program to existing homes ($10,000 for resale, $20,000 for new construction), but as of March 2026 it was filed as not passed. This is a potential future development to watch, but not current law.
S.B. 240 can be combined with the UHC DPA Second loan from Program 1. In that scenario, the S.B. 240 deed of trust records in third lien position behind the first mortgage and the DPA Second.
This combination can cover both the down payment and closing costs entirely on a brand-new home — with $0 monthly payment on either assistance piece — while the first mortgage carries a below-market UHC rate. This is the maximum-assistance scenario available to qualifying Utah buyers today.
Requirements
Does Not Cover
Federal Programs
Federal loan programs are available nationwide but are widely used by Utah buyers — often in combination with UHC assistance. These programs are not administered by the state, but many UHC-approved lenders in Utah originate all three.
Backed by the Federal Housing Administration. One of the most accessible loan types in Utah due to its low down payment requirement and more lenient credit standards. Mortgage insurance is required for the life of the loan unless you refinance.
Can be combined with UHC down payment assistance to cover the 3.5% down payment entirely.
Available to eligible veterans, active-duty service members, and surviving spouses. The VA loan is one of the strongest benefits available to veterans — no down payment, no PMI, and competitive interest rates. Utah has a substantial veteran population and many buyers qualify without realizing it.
Backed by the U.S. Department of Agriculture for homes in eligible rural and suburban areas. A significant portion of Utah — including many communities along the Wasatch Back, rural Cache Valley, southern Utah, and smaller towns statewide — qualifies. Requires no down payment and carries a modest annual guarantee fee instead of PMI.
De un Vistazo
Use this table as a quick reference. Income limits, purchase price limits, and credit minimums change annually — always confirm current figures with your lender or Judy.
| Program | Min. Down | Min. Credit | Income Limit | Price Limit | DPA Available | Best For |
|---|---|---|---|---|---|---|
| UHC FirstInicio | ~0% w/ DPA | 660+ | Yes (by county) | Yes (by county) | Yes | First-time buyers |
| UHC InicioAgain | ~0% w/ DPA | 660+ | Yes (by county) | Yes (by county) | Yes | Repeat buyers, targeted areas |
| UHC Score | ~0% w/ DPA | 620+ | Yes (by county) | Yes (by county) | Yes | Lower credit, first-time |
| UHC NoMI | ~0% w/ DPA | 660+ | Yes (by county) | Yes (by county) | Yes | Buyers avoiding PMI |
| FHA | 3.5% | 580+ | No | FHA limits apply | Paired w/ UHC DPA | Flexible credit, most buyers |
| VA | 0% | Varies | No | No | Not required | Veterans & active duty |
| USDA | 0% | 640+ | Yes (by area) | No strict limit | Not typical | Rural & suburban buyers |
Local Recursos
Beyond state and federal programs, many Utah cities and counties operate their own homebuyer assistance programs. These are often funded through federal Comunidad Development Block Grants (CDBG) and can provide additional down payment grants or forgivable loans on top of UHC assistance.
Salt Lake City and Salt Lake Condado both operate homebuyer assistance programs for income-qualified buyers purchasing within their boundaries. These can be combined with UHC programs for even greater assistance. Programs and funding availability change periodically.
HUD-approved housing counseling agencies in Utah provide free or low-cost pre-purchase counseling, credit coaching, and budgeting assistance. Completing a HUD-approved homebuyer education course is often required to access UHC programs and can help you qualify for better terms.
Ogden, Provo, West Valley, Utah Condado, Davis Condado, and others periodically offer assistance programs funded through federal grants. Disponibilidad depends on current funding cycles. Judy can help you identify what’s active in your target area.
Related Resource
Brand-new homes that have never been lived in are eligible for all UHC programs. Buscar our curated list of eligible new construction listings in Utah — pre-filtered and UHC loan ready.
Browse Eligible New ConstructionWorking with Judy
Knowing the programs exist is only the first step. Getting them to work together — stacking UHC with FHA, pairing DPA with a purchase price limit that fits your target area, completing the required homebuyer education — takes experience. Here is what Judy does for every buyer pursuing assistance:
Judy reviews your income, credit, location, and goals to identify which programs you are eligible for and which combination gives you the most purchasing power.
Judy works with UHC-approved lenders who specialize in these programs. She can connect you with the right lender so you are not navigating the approval process alone.
Most UHC programs require a HUD-approved homebuyer education course. Judy will point you to the right resources and make sure this is completed before you need it.
UHC purchase price limits, targeted areas for InicioAgain, and local city programs all depend on where you are buying. Judy knows what applies in each part of Utah she serves.