If you are buying a home in Utah and wondering how you will cover the down payment, you are not alone. Down payment assistance programs exist specifically to help buyers bridge that gap. Utah offers more than two dozen active programs in 2026, ranging from state-level options through Utah Housing Corporation to city and county grants that can provide tens of thousands of dollars in forgivable assistance.
This guide breaks down the major programs available to Salt Lake City and Salt Lake County buyers, explains how they work, and covers what you need to qualify. The Sharla Ellis Team works with these programs regularly and can help you determine which options fit your situation.
Down payment assistance programs provide funds to cover part or all of your down payment and closing costs. The assistance typically comes in one of three forms.
Forgivable loans do not require repayment if you meet certain conditions, usually living in the home as your primary residence for a set number of years (commonly five to ten years). If you sell or refinance before that period ends, you may need to repay some or all of the assistance.
Deferred loans require no monthly payments. The balance comes due when you sell, refinance, or no longer use the home as your primary residence.
Second mortgages add a small monthly payment on top of your primary mortgage. The interest rate is typically low, often just one percent above your first mortgage rate.
Most programs can be combined with FHA, VA, conventional, or USDA first mortgages. Some programs can even be stacked together, meaning you could use a state program alongside a local city grant for additional assistance.
Utah Housing Corporation (UHC) is the state housing finance agency and offers the most widely available down payment assistance in Utah. These programs work through UHC-approved lenders.
This program provides a second mortgage of up to six percent of your first mortgage amount. You can use the funds for down payment, closing costs, or both.
Key details:
Minimum credit score of 620
Interest rate is one percent higher than your first mortgage rate (capped at eight percent)
30-year fixed-rate second mortgage with monthly payments
Works with FHA, VA, and conventional first mortgages
Not limited to first-time buyers
The FirstHome program is designed specifically for first-time buyers and offers competitive interest rates along with down payment assistance. The assistance comes as a deferred loan, meaning no monthly payments until you sell, refinance, or move out.
Key details:
Up to $27,500 in deferred assistance (amount varies by program tier)
Minimum credit score of 660
Must complete a homebuyer education course
Income and purchase price limits apply based on your county
Must not have owned a home in the past three years
If you have owned a home before but do not currently own one, the HomeAgain program offers similar benefits to FirstHome. It is designed for repeat buyers who have not owned a home in the past three years.
Utah Senate Bill 240 created a special program for first-time buyers purchasing newly constructed homes. As of March 2026, this program is still active and offering up to $20,000 in assistance.
Key details:
Up to $20,000 toward down payment, closing costs, or an interest rate buydown
Only applies to new construction homes priced at $450,000 or less
Must be a first-time buyer (no home ownership in the past three years)
Must have been a Utah resident for at least 12 months before purchase
Funds are a deferred loan, repaid when you sell or refinance
Limited to the first 2,400 qualifying buyers (first-come, first-served)
Administered by Utah Housing Corporation
This program is a strong option if you are considering new construction in areas like Daybreak, Herriman, Eagle Mountain, or other communities with homes under the $450,000 limit.
Salt Lake County and its cities offer some of the most generous local down payment assistance in the state. Availability depends on funding, so program status can change.
The Federal Home Loan Bank HELP program provides up to $20,000 in forgivable assistance for buyers throughout Salt Lake County.
Key details:
Up to $20,000 forgivable grant
Forgiven after five years of owner occupancy
Available countywide
Income limits apply (generally 80 percent of area median income)
Midvale currently offers one of the most generous city-level programs in the Salt Lake area.
Key details:
Up to $30,000 in forgivable assistance
For homes purchased within Midvale city limits
Income limits apply
Program is currently open and funded
Murray offers similar assistance to Midvale, though funding is more limited.
Key details:
Up to $30,000 in forgivable assistance
For homes purchased within Murray city limits
Limited funding available; apply early
Income limits apply
Salt Lake City proper has two programs that are temporarily paused while awaiting new funding. These programs historically reopen when CDBG or HOME funding becomes available.
Own In SLC: Up to $20,000 in forgivable assistance for homes within Salt Lake City limits.
SLC Plus: Up to $30,000 in enhanced forgivable assistance for Salt Lake City purchases.
If you are buying in Salt Lake City, ask us about the current status of these programs. They may reopen during your home search.
Key details:
Up to $7,500 in forgivable assistance
Buyer must contribute $2,500 of their own funds
Forgivable after five years of owner occupancy
Check current funding status
Key details:
Up to 7.5 percent of the purchase price or $20,000, whichever is lower
Forgivable after ten years of owner occupancy
Check current funding status
This location-based program provides $4,500 in grant funds for homes in designated census tracts. Unlike most programs, there are no income limits. Qualification depends entirely on where the property is located.
Buyers looking north of Salt Lake County have access to strong programs in Davis County.
Key details:
Up to $50,000 in deferred assistance
No repayment required as long as you remain in the home
Income limit of 80 percent of area median income
One of the largest assistance amounts available in the Wasatch Front
Key details:
Up to $10,000 in forgivable grant assistance
Can be used for down payment, closing costs, or principal reduction
Forgivable after five years of owner occupancy
Income limits apply
Utah County's Loan to Own program is one of the more substantial options available.
Key details:
Up to $40,000 in deferred, zero-interest assistance
50 percent of the loan is forgivable after ten years of owner occupancy
Minimum credit score of 650
Buyer must contribute at least $1,000 of their own funds
Income limits apply
Key details:
Up to $40,000 in assistance for Provo home purchases
Minimum credit score of 650
Income limits apply
The Chenoa Fund is a national program administered by the CBC Mortgage Agency, which is owned by the Cedar Band of Paiutes in Utah. It offers down payment assistance as a second mortgage with very favorable terms.
Key details:
3.5 to 5 percent of the purchase price
Available as a zero-interest second mortgage over 10 or 30 years
Minimum credit score of 600
Works with FHA first mortgages
Utah offers a small grant specifically for veterans and active-duty military.
Key details:
Up to $2,500 non-repayable grant
For closing costs or down payment
Must be a current or recent service member or veteran
While each program has its own rules, most share common eligibility requirements.
First-time buyer status: Most programs define this as not having owned a home in the past three years. Exceptions may apply for veterans, single parents, or displaced homemakers.
Income limits: Most programs cap household income at 80 percent of the area median income, though some allow up to 120 percent. For Salt Lake County in 2025, the 80 percent AMI limits were approximately $68,750 for a one-person household and $98,150 for a four-person household. These figures adjust annually.
Credit score: Minimums range from 600 to 660 depending on the program. Higher scores generally qualify for more options and better terms.
Homebuyer education: Many programs require completion of a homebuyer education course, typically six to eight hours. This can often be completed online.
Primary residence: All programs require you to live in the home as your primary residence. Investment properties and second homes do not qualify.
Property location: Local programs only apply to homes within that city or county. State programs apply statewide.
One of the advantages of Utah's down payment assistance landscape is that many programs can be combined. A buyer in Midvale, for example, could potentially access:
UHC FirstHome deferred loan (up to $27,500)
Midvale City forgivable grant ($30,000)
Community Lending Incentive if in a qualifying census tract ($4,500)
That combination could provide over $60,000 in assistance. The exact stacking options depend on your location, income, and which programs are currently funded. We help buyers identify all eligible programs and layer them appropriately.
When you are ready to apply for down payment assistance, you will typically need:
Pre-approval letter from a participating lender
Recent tax returns (usually two years)
Recent pay stubs (usually 30 days)
Bank statements (usually two to three months)
Photo identification
Social Security documentation
Purchase contract (once you are under contract on a home)
Having these documents ready speeds up the process. Some programs have limited funding and operate on a first-come, first-served basis, so being prepared matters.
Not always. While many programs target first-time buyers, UHC's standard Down Payment Assistance Program is open to repeat buyers. The Chenoa Fund and some local programs also do not require first-time buyer status. First-time buyer programs typically define "first-time" as not having owned a home in the past three years.
Yes. Most Utah down payment assistance programs work with FHA loans. They also work with VA, conventional, and in some cases USDA loans. Your lender will confirm which combinations are available for your situation.
It depends on the program. Forgivable grants do not require repayment if you stay in the home for the required period (usually five to ten years). Deferred loans come due when you sell, refinance, or move out. Second mortgage programs require monthly payments.
The timeline varies by program, but most can be processed alongside your mortgage application without significant delays. Some programs with limited funding may require earlier application. We coordinate the timing to keep your transaction on track.
Yes, in many cases. State programs can often be combined with local city or county programs. The total assistance cannot exceed your actual down payment and closing costs. We help buyers identify stackable programs based on where they are buying.
You may need to repay some or all of the assistance on a prorated basis. For example, if a program requires five years of occupancy and you sell after three years, you might repay 40 percent of the grant. Each program has its own recapture terms.
Down payment assistance can make the difference between waiting another year and buying now. The Sharla Ellis Team works with Utah Housing Corporation and local programs throughout Salt Lake County, Utah County, and Davis County. We help you identify which programs you qualify for, how to stack them for maximum benefit, and how to navigate the application process.
If you are ready to explore your options, reach out for a conversation. We will review your situation and show you exactly what assistance may be available.