Buying your first home in Utah can feel challenging, especially with today’s prices and rising loan costs. To help new buyers, the state created the Utah First-Time Homebuyer Assistance Program, a major initiative that offers up to $20,000 toward home purchase costs. If you are dreaming of owning a home in Salt Lake City or anywhere in Utah, this program is worth a close look.
Here is a simple breakdown of how it works and what you should know before applying.
What the Program Offers
The Utah Legislature funded this program to help first-time buyers across the state. It provides:
- Up to $20,000 in assistance
- Money can go toward
- Down payment
- Closing costs
- Interest rate buydowns
- A 0 percent-interest loan
- No monthly payments
- You repay the loan when you sell or refinance
Who Qualifies
To use the program, you must meet a few requirements.
You qualify if you:
- Are you a first-time homebuyer
- Use the home as your primary residence
- Purchase a newly constructed home in Utah
- Work with a Utah Housing Corporation-approved lender
Additional guidelines apply, and lenders will confirm your eligibility.
What Homes Qualify
One key detail sets this program apart. It applies only to new construction.
Eligible homes include:
- Newly built detached homes
- Newly built townhomes
- Newly built condos
- Modular and factory-built homes (if permanently affixed)
Investment properties and short-term rentals do not qualify.
How the Repayment Works
The $20,000 is structured as a zero percent-interest, no-monthly-payment loan. You repay it only when you:
- Sell the home
- Refinance your mortgage
- Move out and no longer use it as your primary residence
The repayment is simple. You pay back the original amount you borrowed. There is no added interest.
Why Utah Created the Program
Utah leaders designed the program to help first-time buyers compete with rising housing costs. The goal is to increase access to homeownership while encouraging more construction.
According to coverage from KUER and KSL News, the legislature set aside $50 million to fund these loans statewide.
What This Means for Buyers in Salt Lake City
Salt Lake City continues to be one of Utah’s most competitive markets. Many buyers face challenges with:
- Saving for down payments
- Handling rising interest rates
- Competing with higher-income buyers
This program can open the door for people who are ready to buy but need extra support to get across the finish line.
A few things to keep in mind:
- You may find more qualifying homes in developing areas like Daybreak, Herriman, Eagle Mountain, Magna, and West Jordan
- Condos in new buildings may also qualify
- Builders often work directly with approved lenders
If you want access to new construction without a massive upfront cost, this program can help.
How to Apply
You apply through an approved lender, not directly through the state. The steps are simple:
- Confirm your eligibility
- Work with a Utah Housing-approved lender
- Select a qualifying home
- Complete normal mortgage steps
- Sign the assistance loan at closing
Find Utah Housing Corporation-approved lenders here.
The Utah First-Time Homebuyer Assistance Program gives buyers a real opportunity to enter the market with less financial strain. If you are planning to buy your first home in or around Salt Lake City, this program could be the key to making everything work.
Salt Lake City Real Estate: Your Partner in 2025
If you’re considering buying or selling a home in or around Salt Lake City, we’re here to help! Whether selling to move up, buying your first home, or relocating, we provide expert, data-backed guidance to help you navigate the market with confidence.
Contact Kevin Coyle today to discuss your real estate goals—or explore more insights on our SLC Homes Blog.
