What Are First-Time Homebuyer Programs?
First-time homebuyer programs encompass various loan and grant programs that assist new homebuyers with down payments and closing costs. Each program comes with unique criteria such as credit score, income level, and geographic location.
What First-Time Homebuyer Programs Are Offered in Utah?
Here’s what first-time homebuyer programs in Utah entail:
- FHA Loans: The Federal Housing Administration (FHA) provides mortgage loans made by FHA-approved lenders. FHA loans are backed by the Department of Housing and Urban Development (HUD) and are ideal for first-time homebuyers who have less than perfect credit. The FHA offers single-family and multi-family programs.
- UHC: The Utah Housing Corporation (UHC) was established by the Utah Legislature in 1975. Its objective is to offer quality and safe housing for Utah families with low-to-moderate income. The UHC offers three types of loans—FirstHome, HomeAgain, and Score loans. Their site outlines eligibility criteria for each.
- UHC Veterans Grant: The UHC also provides a Veterans Grant that offers qualified veterans up to $2,500 on their first home. Veterans must first receive a Grant Status Validation from the Utah Department of Veterans Military Affairs (UDVMA) and present this to their lender. Visit the UDVMA site for more information.
- USDA: Backed by the United States Department of Agriculture (USDA), a USDA loan is a program offered to those who are planning to purchase a home outside of a major metropolitan area. If qualified, homebuyers may qualify for a down payment as low as $0. USDA loans typically provide lower interest rates compared to conventional loans. There are two types of USDA loan programs—Single Family Housing Direct Loan Program and Single Family Housing Guaranteed Loan Program.
Apply or obtain pre-approval for any of these loans with a qualified loan officer.