Published October 22, 2026

Utah Down Payment Assistance Programs: How to Buy a Home With Less Cash

Written by Emily Hayes

Illustration of a fictional Utah craftsman home in autumn with the Wasatch mountains and an Emily Hayes Homes, Powered by PLACE, KW South Valley Keller Williams yard sign.

Quick answer: Utah Housing Corporation (UHC), the state's housing finance agency, offers a repayable down payment assistance second mortgage worth up to 6% of your first mortgage loan amount, paired with one of its FHA, VA or conventional first mortgages. Separate state programs add up to $20,000 for first-time buyers of new construction and a $2,500 grant for eligible veterans. You apply through a UHC Participating Lender, not through Utah Housing directly.

Saving the down payment is the hurdle I hear about most from buyers in Salt Lake and Davis County. The good news: Utah has real, funded programs built for exactly this problem. Here is what is actually available right now, who qualifies, and how to start.

What is down payment assistance, and who offers it in Utah?

Down payment assistance (DPA) is money that covers some or all of your down payment and closing costs so you can buy with less cash out of pocket. In Utah, the main provider is Utah Housing Corporation, the state's housing finance agency. The Consumer Financial Protection Bureau notes that state housing finance agencies are one of the first places buyers should look for this kind of help, because their programs are built for local buyers and often combine affordable first mortgages with assistance.

UHC's help comes in three forms: a DPA second mortgage paired with its first mortgage programs, a $20,000 assistance program for new construction, and small grants for veterans and law enforcement officers.

How does the Utah Housing DPA second mortgage work?

Utah Housing will lend you up to 6% of your first mortgage loan amount toward your down payment and closing costs. A few things to understand before you count on it:

It is a loan, not a gift. The DPA is a 30-year fixed-rate second mortgage that must be repaid, with an interest rate 1% higher than your first mortgage rate. You make one combined monthly payment to Utah Housing.
It only works paired with a Utah Housing first mortgage. You cannot take the DPA second to a random lender's loan.
It can cover most or all of your cash to close. UHC says qualified buyers can purchase with little or no cash investment, and it does not require a minimum borrower contribution.

Which first mortgage programs does Utah Housing offer?

The DPA second attaches to one of three UHC first mortgage options, each aimed at a different buyer:

FirstHome (FHA or VA): for first-time buyers, meaning you have not owned a principal residence in the past three years, with exceptions for single parents and veterans. Minimum credit score 660. This program carries income and purchase price limits, and typically the lowest rates.
FHA or VA mortgage: open to first-time and repeat buyers with a credit score of 620 or higher. One borrower must complete a homebuyer education course before closing.
Conventional HFA Advantage (Freddie Mac): for buyers with a credit score of 700 or higher. The rate may be higher, but mortgage insurance costs can be lower, which can mean a lower monthly payment. Homebuyer education is required here too.

Eligible properties include single-family homes, planned unit developments, condos, and some manufactured homes, anywhere in Utah. The home must be your primary residence.

Do I qualify? Income and purchase price limits

As of October 2026, Utah Housing's published limits for the FirstHome program include:

Salt Lake County: maximum household income of $122,700 for a 1-2 person household ($141,100 for 3+), and a maximum purchase price of $653,000.
Davis County (also Morgan, Summit, Wasatch and Weber): maximum household income of $141,300 for 1-2 people ($162,450 for 3+), and a maximum purchase price of $772,400.

For the FHA/VA and Conventional HFA Advantage options, qualifying income is capped at $162,500 across all counties, with no purchase price limit (standard FHA, VA and conforming loan limits apply). These numbers change, so treat them as a snapshot and confirm the current table with your lender.

What is the $20,000 First-time Homebuyers Assistance Program?

Created by the Utah Legislature through Senate Bill 240 in 2023, this program set aside $50 million to help roughly 2,400 first-time buyers purchase newly constructed, never-inhabited homes priced at $450,000 or less. Eligible buyers can receive up to $20,000, usable for the down payment, closing costs, or a permanent interest rate buydown. You still must qualify for a Utah Housing mortgage through a Participating Lender, and the money is available only until the funds run out.

Are there grants for veterans and law enforcement?

Yes. The Utah Veterans Grant offers up to $2,500 cash at purchase to members of the military or veterans who separated within the last five years and are first-time Utah homebuyers. It does not require repayment. The legislature has also appropriated $5 million through the Olene Walker Housing Loan Fund to help recruit and retain Utah law enforcement and correctional officers.

How do I get started?

Utah Housing does not lend directly to the public. Your first step is contacting a UHC Approved Participating Lender and telling them you want a Utah Housing loan. They will confirm which program fits your credit score, income and price range, and whether DPA funds or the $20,000 program are still available. If you do not have a lender, I am happy to connect you with local loan officers in Salt Lake and Davis County who close these loans regularly.

Frequently asked questions

Is Utah down payment assistance free money?

Mostly no. The main DPA program is a repayable 30-year second mortgage. The veterans grant (up to $2,500) does not require repayment, and the $20,000 new construction assistance has its own terms your lender will walk you through.

Do I have to be a first-time buyer?

Only for FirstHome (no ownership of a principal residence in the past three years, with exceptions for single parents and veterans) and the $20,000 new construction program. The FHA/VA and conventional UHC loans are open to repeat buyers.

Can I use these programs anywhere in Utah?

Yes. UHC loans work statewide, including Salt Lake, Davis, Utah, Weber and every other county, as long as the property will be your primary residence.

What credit score do I need?

620 for the FHA/VA option, 660 for FirstHome, and 700 for the conventional HFA Advantage loan, per UHC's published program matrix.

A quick disclaimer

This post is educational, not financial advice, and it is not a commitment to lend. Program terms, income limits, interest rates and funding availability change. The UHC program guidelines referenced here were revised in February 2023, and the limits table is current as of October 2026. Before you make any decision, talk with a licensed lender who can verify current program details and pre-approve you based on your actual finances.

Let's talk about your next move

I'm Todd Hayes with Emily Hayes Homes at KW South Valley Keller Williams, helping buyers across Salt Lake and Davis County. If down payment assistance could get you into a home sooner than you thought, reach out. I will help you map the programs to real homes on the market and introduce you to lenders who know them inside and out.

Header image is an illustration of a fictional Utah home, not a photograph of an actual property or listing.