Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Utah
Weber County First Time Buyer Program together with the Block Grant from HUD offer qualified first-time homebuyers in Weber County, Utah up to $5,000 assistance funds.
Weber County Grant Money funds are provided to eligible applicants. These funds can be used to pay closing costs and/or down payment on a home. The $5,000 assistance is held as a lien against the property for five (5) years. After five (5) years, all $5,000 will be forgiven.
In order to qualify for the Weber County First Time Homebuyer Program:
- All applicants must be first-time homebuyers
- Buyers will need to provide at least $2,000 of their own funds
- You must purchase property in Weber County (except Ogden–see the “Own in Ogden”)
- the housing counseling program finished
- You must not have made an offer on a house without approval
- Maximum purchase price is $180,000
- FHA lender must approve you
In West Jordan, Utah, they are offering assistance funds to qualified applicants to help with upfront expenses associated with the mortgage process. This is to help first-time homebuyers purchase their first home in the city.
For first-time homebuyers, the City of West Jordan, Utah offers up to $5,000 if they purchase a property in the limits of West Jordan City. Then, the grant can be used to pay half the down payment or one-time closing expenses. However, the funds are distributed according to a first-come first-served basis. The buyer must reside in the home a minimum of five years once purchased. Changing the ownership or occupancy, however, of the house will require repayment for the grant funds. The grant is canceled after five years. Additionally, the lien is forgiven at a rate of 20% per year if the home is sold or is no longer occupied by the buyer within the first five years.
In order to qualify for the West Jordan First Time Homebuyer Grant:
- All applicants must be first-time homebuyers.
- The home buyer must pay a minimum $2,000 cash out of their own funds to finance the purchase. However, gift funds cannot be used.
- The applicant must have income requirements and not own a house in the past 24 months
- Co-signers are prohibited.
- Existing or new construction single-family homes, condos, and townhomes are allowed.
- Maximum amount of housing debt cannot go over 35% of the household monthly income, while the total amount of debt must not exceed 45% of the household monthly income.
- The owner must occupy the house.
- The applicant must attend an HUD-approved homebuyers education class and obtain a certificate of completion.
- The City conducts and completes visual inspection for any safety or health concerns.
- 1-person household: $42,250
- 2-person household: $48,250
- 3-person household: $54,300
- 4 -person household: $60,300
- 5-person household: $65,150
- 6-person household: $69,950
- 7-person household: $74,800
- 8-person household: $79,600
The Community Development Corporation of Utah (CDCU) provides federally funded Down Payment Assistance (DPA) programs to ease the burden on potential homebuyers. These programs offer funds to income-eligible, first-time homebuyers to pay down payment requirements and/or any closing costs related to a first mortgage. This basically helps these individuals purchase their own homes. However, the CDCU’s program has a limited number of deferred loans/grants each year. So the applicants will be awarded their financial award on an “first come, first served” basis.
The details of the program vary depending on where the borrower lives. Salt Lake City offers $7,500 in down payments assistance through a 15-year, forgivable loan, and its maximum purchase price is $289,750. However, in Taylorsville residents are eligible for a $5,000 loan, and 20% of which is forgiven every year for up to 5 years. Its maximum purchase price is $299,500. Additionally, people who are buying in areas of Salt Lake County (with the exception of Salt Lake City, Taylorsville, West Valley City, and West Jordan) can get $5,000 as a down payment assistance.
The eligible applicants must have the ability to contribute a minimum of 1% of their income towards the purchase of the house, and a debt-to-ratio of less than 45%. Furthermore, the annual income of all applicants must meet the 80% of the area’s median income:
- 1 person household: $42,250
- 2 person household: $48,250
- 3 person household: $54,300
- 4 person household: $60,300
- 5 person household: $65,150
- 6 person household: $69,950
- 7 person household: $74,800
- 8 person household: $79,600
*Household income means all income earned by household members (18 years and older) who will be living at the house, regardless if they are not on the mortgage.
Besides the regular home loans, Utah Housing Corporation (UHC) offers borrowers the possibility of obtaining a second mortgage to finance a portion or all of their closing costs and down payments. This Down Payment Assistance can be used together with an FHA, VA, or Fannie Mae home mortgage from a UHC participant lender.
Lenders require a minimum down payment depending on the type of loan that borrowers take to finance their home purchase.
- A minimum down payment of 3.5% is required for FHA loans.
- Veterans with full VA eligibility might qualify to finance 100% of the purchase price.
- Fannie Mae needs the buyer to pay at least 3% on the property.
The second mortgage is a fixed-rate loan of 30-years with an interest rate of 2% above the first mortgage. Borrowers may also be eligible to receive a down payment assistance that depends on the mortgage they have taken out to finance their home. The participating lenders at UHC can offer borrowers the FirstHome Loan, Home Again Loan, Score Loan, or NoMI Loan. Then, qualified borrowers may receive funds up to 6% of the FirstHome Loan or Home Again Loan. In addition, funds up to 4% of Score Loans, and 5% of the NoMI Loan.
These loan offices give out the most Utah Housing loans:
- Academy Mortgage Corporation
- Citywide Home Loans
- Security National Mortgage Company
- Veritas Funding, LLC
- Guild Mortgage Company
This is similar to the Down Payment first-time homebuyer assistance programs in Texas.
West Valley City acknowledges that not all potential homebuyers can afford the monthly mortgage payments, and they don’t have enough money to cover out-of-pocket expenses like down payments. Therefore, they offer assistance through the Down Payment Assistance Grant to help with this problem.
West Valley City’s Down Payment Assistance Grant offers $5,000 to eligible homebuyers as a grant. These funds are available to help families with low- to moderate-incomes achieve their goal of homeownership within the city limits. However, this assistance will be given on a first-come basis while funds are available.
Each applicant for the West Valley City’s Down Payment Assistance Grant must meet specific requirements. In order to be eligible, the applicant must provide at least $2,000 cash out-of-pocket for the purchase. Moreover, the owner must document the funds, and they cannot be given, gifted provided by a realtor, seller, etc.
The maximum amount of housing debt (Front End) cannot exceed 31% of the household’s monthly gross income. Housing debt, also known as “PITI”, includes taxes, insurance, principal payment, and HOA fees for a new home loan. Then, the total debt (Back End) cannot exceed 43% the household’s monthly gross income. This includes current monthly debt payments, and the monthly payment for the new home loan.
The owner-occupied units within West Valley City limits are the only ones eligible for consideration. Therefore, existing single-family homes, condos, and town-homes with at least one previous owner/occupant are eligible. Additionally, new construction houses are not allowed.
An applicant approved for the loan must not have an income that exceeds 80% of the area median income. Then, the income of the household is the total income earned by all members (18 years or older) who live in the house, regardless of whether they are not on the mortgage.
- 1 person household: $40,150
- 2 person household: $45,900
- 3 person household: $51,600
- 4 person household: $57,350
- 5 person household: $61,950
- 6 person household: $66,550
- 7 person household: $71,150
- 8 person household: $75,700
Are you interested in the First-Time Homebuyer Assistance Programs in Vermont?