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Utah First-Time Home Buyer Programs of 2018

July 31, 2018
Finding the Right Mortgage, Mortgages
utah-first-time-home-buyer-programs
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Utah Housing Corp. offers mortgages and down payment assistance to help first-time home buyers achieve homeownership in the Beehive State.

You may qualify as a first-time home buyer if you haven’t owned a home in the past three years. Utah Housing offers loans and down payment assistance to repeat home buyers, too, including a program for people with imperfect credit.

National first-time home buyer programs to consider

These national programs can help home buyers in Utah and elsewhere get mortgages with low down payments or even no down payment. Saving up for a down payment is a challenge for many first-time buyers.

Conventional mortgage

National program

Best for

Low down payments

Limited mortgage insurance premiums

What you need to know

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans,

 

FHA loans

National program

Best for

Low credit score

Low down payment

What you need to know

Mortgages insured by the Federal Housing Administration, or FHA, offer relaxed qualification requirements, especially when it comes to down payment and credit score. You can qualify for an FHA home loan with a credit score as low as 500, but you’ll need a 10% down payment. If your score is 580 or

 

VA loans

National program

Best for

Military

Low down payment

What you need to know

Guaranteed by the U.S. Department of Veterans Affairs, these mortgages are available to military members, veterans and surviving spouses. If you qualify, you’ll see benefits such as no minimum credit score and no down payment or mortgage insurance, but you'll likely have to pay a VA funding fee.

 

USDA loans

National program

Best for

Low down payment

Rural

What you need to know

A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit

 

Utah Housing highlights and eligibility requirements

First-time home buyers in Utah who meet income and other eligibility requirements can get 30-year mortgages at competitive interest rates through Utah Housing’s FirstHome Loan program. Other loan programs are available to first-time and repeat buyers.

HIGHLIGHTS

  • Down payment and closing-cost assistance is available in the form of a second mortgage.
  • All primary mortgages are 30-year, fixed-rate loans.
  • Minimum credit scores vary from 620 for a Score Loan to 700 for a NoMI Loan.

ELIGIBILITY

  • Loan must be used to buy a primary residence in Utah.
  • Most programs have income limits.
  • Some programs have home-price limits.
  • Program-specific requirements may apply.

» MORE: Tips for first-time home buyers

Utah first-time home buyer loan programs

FirstHome Loan

State program

Learn more

at Utah Housing

Best for

Low down payment

Down payment assistance

Closing cost assistance

What you need to know

The FirstHome Loan program offers mortgages for first-time home buyers and qualified veterans and single parents. Loans can be used for manufactured homes, with certain restrictions. The minimum credit score is 660 and there are limits on household income and purchase price. In addition to getting

 

HomeAgain Loan

State program

Learn more

at Utah Housing

Best for

Low down payment

Down payment assistance

Closing cost assistance

What you need to know

The HomeAgain Loan offers affordable interest rates on mortgages for first-time and repeat home buyers. The minimum credit score is 660. HomeAgain is similar to the FirstHome program, but carries higher interest rates (half a percentage point higher in a recent check), has higher income limits and

 

Score Loan

State program

Learn more

at Utah Housing

Best for

Low credit score

Low down payment

Down payment assistance

Closing cost assistance

What you need to know

The Score Loan is a mortgage for people with credit scores lower than the 660 minimum required by FirstHome and HomeAgain. It is for first-time and repeat home buyers with a minimum credit score of 620. Borrowers are required to take a home buyer education course. Score Loans are for low- to

 

NoMI Loan

State program

Learn more

at Utah Housing

Best for

Low down payment

Low mortgage insurance

Down payment assistance

Closing cost assistance

What you need to know

The NoMI Loan is a mortgage with a low down payment and without monthly mortgage insurance payments. The minimum down payment is 3%. It's for first-time and repeat home buyers. The minimum credit score is 700, and there are income limits. Down payment and closing cost assistance is available as a

 

Grants for Veterans

State program

Learn more

at Utah Housing

Best for

Military

What you need to know

Members of the military, or veterans who separated in the past five years, may be eligible for cash grants up to $2,500 when they buy their first Utah home. The grant is available to people who have previously owned homes in other states.

 

Your next step

That’s a summary of homebuying programs for first-time (and repeat) home buyers in Utah. For details, see the Utah Housing Corp. website. Utah Housing does not lend directly; approved lenders do. If any of these programs seem promising to you, contact a lender directly.

» MORE: See the best Utah mortgage lenders

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