Why This Program Matters Right Now
Utah homebuyers face a difficult affordability environment because upfront cash remains one of the biggest barriers to purchasing a home. Even when a buyer can qualify for a mortgage payment, down payment and closing cost requirements can delay or prevent a purchase.
The Utah Housing Corp Down Payment Assistance Second Mortgage is worth highlighting because it directly targets those upfront costs. It gives eligible Utah buyers access to structured down payment assistance and closing cost assistance when used with a Utah Housing Corporation first mortgage.
What This Program Provides
The Utah Housing Corp Down Payment Assistance Second Mortgage provides assistance that can be used for down payment and closing costs. The program is offered by Utah Housing Corporation, a state government housing provider based in West Valley City, Utah.
The maximum assistance amount is $27,500. The assistance is calculated in one of two ways: Traditional DPA provides 6% of the first mortgage loan, not to exceed $27,500, while Deferred DPA provides 3.5% of the first mortgage loan, not to exceed $27,500.
This homebuyer program is available statewide in Utah and must be combined with one of Utah Housing’s loan programs.
Program Structure
This program is structured as a second mortgage. It is not a grant, and repayment is required.
The DPA Second loan is an owner-occupied, 30-year fixed-rate second mortgage. The interest rate is 1% higher than the interest rate on the buyer’s first mortgage.
Monthly payments for both the first mortgage and the second mortgage are paid to Utah Housing. Buyers who previously received a Utah Housing DPA loan are not eligible for another Utah Housing DPA loan unless the prior DPA loan has been paid in full.
Key Numbers
- Maximum assistance: $27,500
- Traditional DPA amount: 6% of the first mortgage loan, not to exceed $27,500
- Deferred DPA amount: 3.5% of the first mortgage loan, not to exceed $27,500
- Minimum assistance: 3.5% or 6% of the first mortgage loan
- Minimum borrower contribution: Not publicly disclosed
- Program term: 30 years
- Program interest rate: 1% higher than the first mortgage interest rate
- Income limits: Yes
- Maximum household income: Not publicly disclosed
- Minimum household income: Not publicly disclosed
- Credit score requirement: Not publicly disclosed
- Provider phone number: 801-902-8200
- Program point of contact phone number: 801-872-8568
- Provider address: 2479 South Lake Park Blvd, West Valley City, Utah 84120
Eligibility Requirements
- The buyer must use the DPA Second with one of Utah Housing’s loan programs.
- The assistance is for borrowers who have not been able to save enough money for their down payment and closing costs.
- Income limits apply, but the maximum income limit is not publicly disclosed in the provided data.
- Approved first mortgage types are not publicly disclosed; buyers are directed to contact a lender.
- First-time homebuyer status is not publicly disclosed.
- Credit score requirements are not publicly disclosed.
- Debt ratio, reserve, employment or lender overlay requirements are not publicly disclosed.
- Citizenship status requirements are not publicly disclosed.
- Homebuyer education requirements are not publicly disclosed.
- Buyers with a bankruptcy, short sale or foreclosure should speak with their lender to determine whether they qualify for a Utah Housing loan.
- Buyers are not eligible for another Utah Housing DPA loan if a previous DPA loan has not been paid in full.
Property Requirements
- The property must be located in Utah.
- County coverage is statewide across all Utah counties.
- The property must be owner-occupied.
- Eligible unit types include single, duplex and triplex properties.
- Allowable property types are not publicly disclosed.
- Maximum purchase price is not publicly disclosed.
How the Process Works
- Contact a participating lender approved by Utah Housing Corporation.
- Qualify for a Utah Housing Corporation first mortgage.
- Have the lender submit the application for down payment and closing cost assistance.
Affordability Impact
This program reduces the upfront cash required to buy a home in Utah. Buyers may use the assistance toward down payment and closing costs, which can help reduce the amount they need to save before purchasing.
This program does not reduce the monthly payment. It reduces upfront cash required.
Because the assistance is structured as a 30-year second mortgage, the buyer should evaluate both the first mortgage payment and the second mortgage payment before deciding whether this homebuyer program fits their budget.
Where This Fits in the Market
The Utah Housing Corp Down Payment Assistance Second Mortgage fits into the market as repayable upfront cost assistance tied to a Utah Housing Corporation first mortgage. That makes it different from grant-style down payment assistance programs because the buyer receives help at closing but repays the assistance through a second mortgage.
The program may be most relevant for Utah buyers who can support the combined monthly payment but need help covering down payment and closing costs. Its structure also makes lender guidance important because the assistance is only available when paired with a qualifying Utah Housing loan program.
For example, a buyer using the Traditional DPA option may qualify for assistance equal to 6% of the first mortgage loan, subject to the $27,500 cap. That support can reduce the amount of cash needed at closing, but it also creates a second mortgage payment that must be included in the buyer’s full affordability review.
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