Becoming a first-time homebuyer in Utah is an exciting experience. After years of renting, you finally get the chance to renovate, paint, and decorate your own place. To make this process easier, there are a number of first-time homebuyer programs in Utah you can use.
You can get primary mortgages, down payment loans, closing cost grants, and other options. To qualify, you must be qualified and eligible and fit the definition of being a Utah first-time homebuyer.
Interestingly, you may be eligible for Utah first-time homebuyer programs even if you have previously owned a home. As long as you haven’t been an owner for at least three years, you fulfill one of the requirements. You can also satisfy the qualifications for first-time buyers if your spouse hasn’t owned a home for three years or more.
Additional ways you qualify include if you are a single parent or displaced homemaker who only owned a home with a spouse while married. Or you could qualify if your property wasn’t in compliance with state, local, or federal building codes, and the property couldn’t be brought into compliance for less than the cost of building a permanent structure.
First-Time Homebuyer Tax Credits & Down Payment Assistance in Utah
If you are looking for financing options as a Utah first-time homebuyer, there are a number of programs designed for down payment assistance and closing costs. In addition, Utahhas many loans and home buyer grants available, which can be used for the same purpose. These aren’t financing options on your home since they are simply designed to help you with your initial down payment or closing costs on your new home.
According to the Fair Housing Administration (FHA), there are three main Utah first-time homebuyer programs you may use to cover your down payment. These include down payment assistance programs in Utah with Utah Housing Corporation (UHC) Down Payment Assistance, Community Development Corporation of Utah (CDCU) Down Payment Assistance, and West Valley City Down Payment Assistance Grant.
If you are trying to get down payment assistance in Utah, you can start by applying for UHC Down Payment Assistance. This program involves getting a second mortgage, which finances your closing costs or down payment. You can use this program with a Veterans Affairs (VA), Fannie Mae, or FHA home loan.
CDCU Down Payment Assistance offers opportunities for first-time homebuyers who satisfy certain income requirements within a set range. The program provides funding for closing costs and/or down payment requirements connected to the individual’s first mortgage.
One of the best home buyer grants you can use to get a home is the West Valley City Down Payment Assistance Grant. These funds give eligible homebuyers $5,000 they don’t ever have to repay. The grant is designed to help low-income and moderate-income families become homeowners.
You can also lower the cost of buying a home in Utah through options like the Home Buyers Tax Credit, which is technically a kind of mortgage credit certificate. This Utah first-time homebuyer tax credit turns a part of your mortgage interest deduction into a tax credit, and it can save you up to $2,000 a year for the entire life of your loan. Sometimes, lenders let you use this credit to qualify for a larger loan than your income would normally allow you to get.
First-Time Homebuyer Loans in Utah
If you are struggling to get a mortgage as a first-time homebuyer in Utah, there are national and state-specific loans you can get. For example, the Utah Housing Corp (UHC) offers a loan for single-family homes, condos, and manufactured homes in Utah. In order to qualify, you must have a credit score of 620 or higher and a monthly income of $8,900 or less.
With the UHC home loan, you can take part in a down payment assistance program as long as you qualify for a VA, FHA, or conventional first mortgage loan. To find out more about the program, you should talk to a Utah Housing Corp approved participating lender.
Through the FirstHome Loan program in Utah, you can get a mortgage if you are a first-time homebuyer, single parent, or qualified veteran. You qualify if you have a 660 credit score and meet the loan’s income eligibility requirement. With this program, you can get closing costs and down payment assistance worth up to 6% of the loan amount.
If you are a first-time homebuyer in Utah with bad credit, you may be able to qualify for the Score Loan. This is one of the top Utah first-time homebuyer programs if you have a credit score lower than 660, but you have to complete a homebuyer education course to take part. Designed for low-income and moderate-income borrowers, this program allows you to get up to 4% of your mortgage loan amount for down payment and closing cost help.
The FHA is well-known for its relaxed loan requirements. You can get an FHA home loan with a credit score of as low as 500. While low credit scores require 10% down payments, you may only have to pay a down payment of 3.5% if your credit score is at least 580 or higher.
If you want a first-time homebuyer loan in Utah, the USDA could be another option to help. You can get a USDA home loan with zero down payment in suburban and rural areas as long as you meet the right income limitations. In addition, people with credit scores of 640 or higher get to enjoy having a faster, streamlined process.
First-Time Homebuyer Programs in Salt Lake City, Salt Lake County
Are you searching for first-time homebuyer programs in Salt Lake County, UT? Luckily, there are a few options available you can use as long as you meet specific borrower requirements.
If you’re looking for a first-time homebuyer program in Salt Lake City, the Own in Salt Lake City program was designed for you. It includes a $5,000 down payment assistance grant. You can also get the Salt Lake County Grant for the same amount if you are buying a home outside of Salt Lake City.
To qualify for the city’s grant, you must buy a home within the city’s boundaries and contribute at least 1% of $1,000 of your personal funds toward the contract sales price. If you sell the home, you must repay the deferred loan. Along with being a Utah first-time homebuyer, you must also buy a property for less than $231,000 and complete a homebuyer education course.
Utah Programs & Loan Options
FHA Loans
This is one of the Utah first-time homebuyer programs for buyers who have bad credit or no down payment. You can get this loan for as little as 3.5% down.
HomeAgain Loans
This loan requires a 660 credit score in exchange for help paying closing costs and down payment costs worth up to 6% of the primary mortgage amount.
USDA Loans
These loans offer zero down payment if you are buying a home in a suburban or rural area.
Utah Veteran First-Time Homebuyer Grant
If you are a veteran looking for first-time homebuyer grants in Utah, this program will give you up to $2,500.
NoMI Loan
The NoMI Loan is a mortgage with a down payment as low as 3%, but you must have a credit score of at least 700. If you lose this loan, you also get a NoMI grant of $1,500 to help you buy your home.
Score Loans
Score loans help a Utah first-time homebuyer who has bad credit and a low to moderate-income.
FAQs for First Time Homebuyers in Utah
Are first-time homebuyer programs worth it?
If you are struggling to qualify for a standard loan or need help with a down payment, Utah first-time homebuyer programs are well worth the effort. It all depends on your personal situation.
Who is considered a first-time homebuyer in Utah?
If either you or your spouse hasn’t owned a home for three years or more, you are classified as a first-time homebuyer.
Who qualifies for down payment assistance in Utah?
The qualifications vary from program to program, but most programs have specific income or credit score requirements to be eligible.
Are You a First Time Homebuyer in Utah?
If you are a Utah first-time homebuyer, there are a number of options available to help you find loans, down payment assistance, and help with your closing costs.
And as you prepare to move into your new home, the team at Wasatch Moving Company would love to help you get there! Our professionals serve locations all over the state of Utah. Give us a call today at (801) 335-5603 to learn more about our services or complete the Request a Quote form above to get a free moving estimate!
