Utah’s UHC offers its FirstHome loan with a down payment second, plus a state-funded program worth up to $20,000 — created by the legislature to help buyers into newly built homes — and targeted grants for veterans and law enforcement.
This guide covers what is actually available to first-time buyers in Utah in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Utah first-time home buyer guide.
The Utah Housing and its home loan programs
Utah’s first-time buyer programs are run by the Utah Housing Corporation (UHC). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- FirstHome Loan — the flagship first-time buyer 30-year fixed loan (660+ credit)
- FHA/VA Loan — 620+ credit, open to repeat buyers
- Freddie Mac HFA Advantage — 680+ credit, conventional with reduced mortgage insurance
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Utah
Down payment assistance is the heart of what Utah Housing offers, and Utah gives buyers more than one way to get it. Utah offers a percentage-based second plus a large state-funded program favoring new construction.
- Down Payment Assistance Second Mortgage — repayable second (fully amortizing), up to about 6% of the first-mortgage amount (verify current cap/rate with UHC).
- First-Time Homebuyer Assistance Program (SB 240) — state-funded deferred/repayable second, up to $20,000 for newly built or qualifying homes.
- Grants for Veterans — grant (no repayment), up to $2,500 for recently separated service members buying their first Utah home.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $450,000 home in Utah, the standard down payment second could cover up to about 6% — roughly $27,000 — as a fully amortizing second mortgage. Buyers purchasing newly built or qualifying homes may instead use the state-funded SB 240 program for up to $20,000. Recently separated veterans can add a $2,500 grant. Note that some UHC products (HomeAgain, Score, NoMI) are currently suspended, so confirm what is active with UHC.
Who qualifies in Utah?
Every program sets its own rules, and they change periodically, but the common requirements in Utah look like this:
- Income limits. UHC income limits vary by program.
- First-time status. FirstHome requires first-time status; the FHA/VA and HFA Advantage loans do not (SB 240 and the grants require first-time status).
- Credit score. Minimums range from 620 (FHA/VA) to 680 (HFA Advantage), with 660 for FirstHome. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. Homebuyer education is required, especially when using down payment assistance.
- Purchase price limits. UHC purchase-price and loan limits apply by program.
Utah programs worth knowing about
Beyond the standard offerings, Utah aims extra help at specific buyers and places. Watch for:
- SB 240 First-Time Homebuyer Assistance — up to $20,000, favoring newly built homes
- Grants for Veterans — up to $2,500
- Grants for Law Enforcement — funded by a state appropriation
Mortgage Credit Certificates in Utah
Utah Housing’s active lineup centers on subordinate-loan down payment assistance rather than a Mortgage Credit Certificate — verify with UHC if a tax credit is important to you. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Utah assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Utah program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates Utah Housing loans, so ask directly which Utah Housing programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: Utah Housing program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with Utah Housing before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Utah first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Utah?
FirstHome requires first-time status; the FHA/VA and HFA Advantage loans do not (SB 240 and the grants require first-time status).
What credit score do I need for Utah Housing programs?
Minimums range from 620 (FHA/VA) to 680 (HFA Advantage), with 660 for FirstHome. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Utah assistance with an FHA, VA, or USDA loan?
Yes. Utah Housing assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
What is Utah’s SB 240 program?
SB 240 is a state-funded First-Time Homebuyer Assistance Program that provides up to $20,000 toward a down payment, with an emphasis on newly built or qualifying homes — part of Utah’s push to expand housing supply. It requires first-time status and pairs with a Utah Housing loan. Because funding and rules can change, and some other UHC products are currently suspended, confirm current availability with Utah Housing.
More Utah city guides
Buying in a specific Utah metro? See our first-time buyer guides for Salt Lake City, each covering the city’s own local down payment programs.
First-time home buyer grants in Utah
Looking specifically for grant money? Our guide to first-time home buyer grants in Utah covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.