Down payment assistance in Utah, explained honestly.

Most first-time buyers in this state never find out this money exists. A smaller number find out about it, assume it's free, and get a surprise at closing. Here's both halves.

What it actually is

Down payment assistance is money that covers some or all of your down payment and, in most cases, part of your closing costs. In Utah it comes in two very different shapes, and almost nobody explains the difference:

If someone tells you down payment assistance is free money, they are describing the grant and selling you the loan.

The four Utah Housing loan programs

Utah Housing Corporation is the state's housing finance agency. You don't apply to them directly — you apply through a participating lender, who originates a UHC first mortgage and, if you want it, the assistance second alongside it.

Those percentages are of the first mortgage amount, not the purchase price. It is a small distinction that changes the figure: 6% of a $440,000 loan is not 6% of a $462,495 house. Ask which base your lender is quoting from.

HomeAgain is suspended for this year. If you are a repeat buyer, or you have not owned in three years, that was your door — and it is shut for now. Ask about Score and NoMI instead, and ask again next year.

Every one of them carries an income limit and a purchase price limit, and both depend on where you're buying. Tooele County's figures are on the last page of this document.

How people end up with $15,000 to $30,000

The larger numbers you see quoted come from stacking — combining a Utah Housing second with a separate grant, a lender credit, or a seller concession negotiated into your offer. The pieces come from different places and follow different rules, which is why the total varies so widely from buyer to buyer.

What that stack looks like for you depends on your income, your credit, which county you're buying in, whether you've owned before, whether you've served, and what's actually funded that week. There is no single number, and anyone who quotes you one without asking those questions is guessing. The honest way to find yours is to have a lender price the stack you actually qualify for, in the week you are actually buying.

The part that surprises people

The assistance second mortgage is a lien on your home. That has three consequences worth understanding before you sign:

• It comes due when you sell or refinance. Not in thirty years — when the house changes hands. If you sell in four years, it's paid out of your proceeds.
• It reduces what you walk away with. Assistance now is equity later. That's a fair trade if it gets you in the door years earlier, and a bad one if you were three months from having the down payment anyway.
• It can carry interest. Some assistance seconds are 0%. Some are not. Ask which one you're being handed, and get the rate in writing. Right now that rate runs up to 8%, and is commonly around 7.25% — not the 0% people assume.

Assistance isn't a discount on the house. It's a decision to trade some future equity for getting in now.

If you served

Start somewhere else entirely. A VA loan requires no down payment at all, carries no monthly mortgage insurance, and limits what you can be charged in closing costs. For most eligible veterans it beats a conventional loan with assistance attached, because there's no second lien eating your equity.

Run both. If the VA route works, assistance is a question about closing costs rather than about the down payment — a much smaller question. And if you're a veteran who also qualifies for one of the occupation-specific grants, that combination is where the largest realistic numbers in this state actually come from.

I spent twenty-seven years in the military, and twenty years as a corrections officer in Salt Lake County. I am not going to let a veteran client leave a benefit on the table because nobody walked them through it.

Tooele County numbers

Tooele County has its own row on Utah Housing's limits table — you don't have to work out which metropolitan area you fall into. The figures below are for FirstHome, and the income limit depends on how many people live in the household.

That price ceiling is a lot higher than most people assume, and higher than the figures circulating on third-party mortgage sites, which put it somewhere between $475,000 and $500,000. It is $666,600. If you talked yourself out of Utah Housing because you thought your price range disqualified you, check again.

Source: Utah Housing Corporation's own income and purchase price limits table, read 2026-08-13. These are the FirstHome rows — Score, NoMI and HomeAgain publish their own limits, and the effective date still needs confirming, so treat the two marked rows above as open. Utah Housing revises these; a UHC-participating lender checks them weekly.

utahhousingcorp.org/homebuyer/limits  ·  or ask any UHC-participating lender to pull them for you. They check these weekly.

What to do next

• Talk to a lender who actually does UHC loans. Not every lender is a participating originator, and one who isn't will tell you the programs aren't worth it.
• Ask for the assistance terms in writing — amount, interest rate, and when it comes due. Three questions.
• Ask what's funded this week. Not this year.
• If you served, price the VA loan first, then decide whether you still need assistance.

If you want help working out which of these applies to you, call or email me. There's no charge for the conversation and no obligation attached to it.

All thirteen sections: The Real Buyer’s Guide