What is Down Payment Assistance?
Down payment assistance (DPA) programs help homebuyers cover their down payment and closing costs. In Utah, these programs are offered by the state (Utah Housing Corporation), counties, cities, and nonprofit organizations.
For most homebuyers, the down payment is the biggest barrier to homeownership. Even with FHA loans requiring just 3.5% down, a $400,000 home still needs $14,000 upfront — plus closing costs. DPA programs bridge this gap, sometimes covering 100% of your upfront costs.
Types of Down Payment Assistance in Utah
Understanding the different types of assistance helps you choose the best option for your situation.
Grants
Free money — no repayment required
Grants are the best form of DPA because you never pay them back. In Utah, grants range from $2,500 (UHC Veteran Grant) to $10,000 (At Home in Layton). These are highly competitive and often have limited funding.
Examples: At Home in Layton ($10,000), UHC HomeAgain Grant ($2,500)
Forgivable Loans
Forgiven after 5 years of occupancy
These are loans that become grants if you stay in your home for a set period (usually 5 years). If you sell or refinance early, you repay a prorated amount. This is the most common type of DPA in Utah.
Examples: Murray City DPA ($30,000), Midvale City DPA ($30,000), NeighborWorks programs
Deferred Loans
Repaid when you sell, refinance, or pay off mortgage
These loans have no monthly payments but must be repaid when you sell the home, refinance, or pay off your first mortgage. Interest rates are typically 0-3%. Good option if you plan to stay long-term.
Examples: Davis County DPA ($50,000), Utah County Loan to Own ($40,000), Provo Home Purchase Plus ($60,000)
Second Mortgages
Monthly payments at below-market rates
These are traditional loans with monthly payments, but at favorable rates. UHC offers 30-year second mortgages at the same rate as your first mortgage. Good for buyers who want maximum assistance and can handle the payment.
Examples: UHC Second Mortgage ($10,000-$27,500)
Utah DPA Eligibility Requirements
Most programs share similar requirements. Here's what you typically need to qualify:
Income Limits
Most programs use Area Median Income (AMI) limits that vary by household size and county.
2026 Typical Limits (Family of 4):
- • 80% AMI: ~$70,000-$85,000/year
- • 100% AMI: ~$88,000-$106,000/year
- • 120% AMI: ~$105,000-$130,000/year
Take our quiz to check income limits for your specific situation.
Property Requirements
- Must be your primary residence
- Located in the program's service area
- Meet purchase price limits (varies by program)
- Usually single-family, condo, or townhome
Credit Requirements
- 620+ credit score for most programs
- 660+ score for best options
- Stable employment history
- Acceptable debt-to-income ratio
Education Requirements
- Most programs require a homebuyer education course
- Online courses available (2-8 hours)
- HUD-approved counseling accepted
- Some programs waive this for repeat buyers
Top Utah DPA Programs for 2026
Here are the highest-value programs currently available:
Provo Home Purchase Plus
Provo • Deferred Loan
Ogden City Homes
Ogden • Carry-Back Mortgage
Davis County Homebuyer Assistance
Davis County • Deferred Loan
Utah County Loan to Own
Utah County • Deferred Loan
Murray City DPA
Murray • Forgivable Loan
Midvale City DPA
Midvale • Forgivable Loan
UHC Second Mortgage
Statewide • Second Mortgage
Programs by Location
Many programs are location-specific. Find assistance available in your area:
How to Apply for Utah DPA
Follow these steps to secure your down payment assistance:
Check Your Eligibility
Take our free 5-minute quiz to see which programs you may qualify for. No SSN or sensitive info required.
Take the QuizComplete Homebuyer Education
Most programs require a HUD-approved homebuyer education course. Online courses take 2-8 hours and cost $50-100. Some programs reimburse this cost.
Get Pre-Approved with a Participating Lender
Work with a lender experienced in DPA programs. They'll verify your income, credit, and eligibility for specific programs. Not all lenders offer all programs.
Find Your Home
Search for homes within program price limits and geographic areas. Your lender can help you understand the limits for programs you're targeting.
Apply for DPA Programs
Your lender submits applications on your behalf. Some programs like city grants require separate applications. Processing times vary from 1 day to 2+ weeks.
Close on Your Home
DPA funds are disbursed at closing. You'll sign documents for your first mortgage plus any DPA loans. Congratulations — you're a homeowner!
Frequently Asked Questions
What is down payment assistance (DPA)?
Down payment assistance programs provide financial help to homebuyers for their down payment and closing costs. In Utah, this assistance comes as grants (free money), forgivable loans (forgiven after 5+ years), deferred loans (repaid when you sell), or second mortgages (monthly payments).
How much down payment assistance can I get in Utah in 2026?
Utah homebuyers can access up to $85,000 in combined assistance by stacking multiple programs. Individual programs range from $2,500 (UHC Veteran Grant) to $60,000 (Provo Home Purchase Plus). Most buyers qualify for $15,000-$40,000 total.
What are the income limits for Utah DPA programs?
Most Utah DPA programs use Area Median Income (AMI) limits. Common limits are 80% AMI (approximately $70,000-$85,000 for a family of 4 depending on county) or 120% AMI (approximately $105,000-$130,000). Some programs like Community Lending have no income limits.
Do I have to be a first-time homebuyer?
Not always! While many programs target first-time buyers, several Utah programs are available to repeat buyers. UHC Score Loan, Community Lending Program, and some city programs welcome all buyers who meet income requirements.
Can I combine multiple DPA programs?
Yes! Many Utah programs can be stacked. For example, you could combine a city program (like Murray's $30,000) with a UHC second mortgage ($10,000-$27,500). Some buyers access $50,000+ in combined assistance.
How do I apply for Utah down payment assistance?
Start by taking our free eligibility quiz to identify programs you may qualify for. Then work with a participating lender who can verify eligibility and guide you through applications. Most programs require homebuyer education courses.
Last updated: January 15, 2026 •How we track programs
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