What is the Utah FirstHome Loan Program?
The Utah FirstHome Loan Program offers low-interest fixed-rate mortgages and down payment assistance to help first-time homebuyers achieve homeownership.
Who qualifies for the FirstHome Loan Program?
Eligibility is based on being a first-time homebuyer, meeting income and purchase price limits, and purchasing the home as a primary residence.
What defines a first-time homebuyer for this program?
A first-time homebuyer is someone who has not owned a primary residence within the past three years. Certain exceptions apply for buyers in targeted areas.
How much down payment assistance is available?
Eligible buyers can receive up to 6% of the loan amount as down payment and closing cost assistance, helping reduce upfront expenses.
What is the minimum credit score required for this program?
Applicants typically need a credit score of at least 620 to qualify. Higher scores may improve loan terms and eligibility.
Are there income limits for the FirstHome Loan Program?
Yes, income limits vary based on household size and the county where the property is located, ensuring the program benefits low-to-moderate-income families.
What types of properties are eligible for the program?
Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may also qualify if they are permanently affixed to a foundation and meet program guidelines.
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Get Started NowWhat is the maximum purchase price allowed?
As of 2025, the maximum purchase price varies by county but generally ranges from $350,000 to $600,000, depending on program criteria.
Does the down payment assistance need to be repaid?
The assistance is provided as a deferred second mortgage with no interest. Repayment is required only if the buyer sells, refinances, or moves out of the home before the loan term ends.
Is homebuyer education required?
Yes, completing a homebuyer education course is mandatory to help participants understand the financial responsibilities of homeownership.
Can the program help with closing costs?
Yes, the down payment assistance can be used for both the down payment and eligible closing costs, making homeownership more affordable.
Are there restrictions on where the property must be located?
Yes, the property must be located within Utah and meet program eligibility guidelines for type and price.
Can the program be used for newly constructed homes?
Yes, newly constructed homes are eligible as long as they meet the program’s purchase price and other requirements.
Are there debt-to-income (DTI) ratio requirements?
The maximum allowable DTI ratio is typically 45%, though exceptions may be made for applicants with strong credit or other compensating factors.
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Get Started NowCan the FirstHome Loan Program be combined with other assistance programs?
Yes, the program can often be combined with other state or local homebuyer assistance programs to maximize benefits.
What are the benefits of the Utah FirstHome Loan Program?
The program provides low-interest mortgages, financial assistance for upfront costs, and access to homebuyer education, making it easier for first-time buyers to afford a home.
Can this program be used with FHA, VA, or USDA loans?
Yes, the FirstHome Loan Program can be paired with FHA, VA, USDA, and conventional loans, provided all eligibility requirements are met.
How does the deferred second mortgage work?
The deferred second mortgage offers assistance without requiring monthly payments. Repayment is required only if the buyer sells, refinances, or no longer uses the home as their primary residence.
What is the application process for the FirstHome Loan Program?
Applicants work with an approved lender who will verify eligibility, guide them through the application process, and assist in securing both the loan and any available assistance.
Is there a fee for participating in the FirstHome Loan Program?
Yes, a one-time program fee may apply, which is typically included in the closing costs. The lender can provide specific details during the application process.