Utah First-Time Home Buyer Programs & Grants 2026

The biggest obstacle most Utah County buyers face isn't qualifying for a mortgage — it's coming up with the down payment and closing costs.

Here's what most people don't know: Utah has some of the most robust homebuyer assistance programs in the country. Between state-level programs through the Utah Housing Corporation (UHC), the SB 240 First-Time Homebuyer Assistance Program, veterans grants, and local Utah County programs — qualified buyers can access tens of thousands of dollars in help. Many programs can be stacked together for even more.

This guide covers every major program available to Utah County buyers in 2026, sourced directly from UHC and state legislative records. Program details change — always confirm current income limits, credit requirements, and fund availability directly with a UHC-approved lender before applying.

I am not a lender. This post is for informational purposes only.

SB 240: Utah's First-Time Homebuyer Assistance Program

This is the program generating the most buzz in Utah homebuying circles right now — and for good reason.

The Utah Legislature passed Senate Bill 240 during the 2023 General Session, creating the First-Time Homebuyer Assistance Program. Per Utah Housing Corporation's program page:

What it is: Up to $20,000 as a deferred, 0% interest loan — no monthly payment — for qualifying first-time buyers purchasing a newly constructed, never-occupied home.

How it works: The $20,000 can be used for down payment, closing costs, and/or a permanent interest rate buydown on the qualifying mortgage. It's repayable when you sell or refinance — at that point you repay the lesser of $20,000 or 50% of the home's equity gain.

Key requirements:

First-time homebuyer (no homeownership in the past 3 years)
Utah resident for at least 12 months before applying
The home must be new construction, never occupied, priced at or below $450,000
Must meet UHC income limits
Must use a UHC participating lender
Funds are limited — the Legislature appropriated $50 million to assist approximately 2,500 first-time buyers

What makes this powerful: On a $420,000 new construction home in Eagle Mountain or Saratoga Springs, $20,000 covers most or all of your minimum down payment — getting you into a new home with dramatically less cash out of pocket.

Utah Senate President J. Stuart Adams, who sponsored the bill, said: "As someone concerned we are losing our middle class, my goal is to help Utahns live the American dream and build equity for their future."

As I covered in my Lehi home buyer resources guide, SB 240 is one of the most meaningful affordability tools available to Utah County first-time buyers right now — but it only applies to new construction under $450,000, so it works best in Eagle Mountain and parts of Saratoga Springs where new builds still hit that price point.

Utah Housing Corporation (UHC): The Full Program Menu

The Utah Housing Corporation is Utah's state housing finance agency. It administers multiple mortgage and down payment assistance programs available to buyers across all of Utah County. Per UHC's homeownership programs page, here are the four primary loan programs:

FirstHome — Best Rates, First-Time Buyers Only

Credit score: 660 minimum Who qualifies: First-time buyers (and qualifying single parents and veterans) Down payment assistance: Up to 6% of the first mortgage amount Key feature: Typically offers UHC's lowest available interest rate Income limits: Vary by county and household size — RefiGuide reports Utah County income limits in the $80,000–$126,200 range depending on household size Purchase price limits: Apply — confirm current limits with a UHC lender

HomeAgain — For First-Time and Repeat Buyers

Credit score: 660 minimum Who qualifies: First-time buyers who don't qualify for FirstHome, AND repeat buyers Down payment assistance: Up to 6% of the first mortgage amount Key feature: No purchase price limit — useful for buyers in higher-priced markets Income limits: Apply based on household income

Score — For Buyers Rebuilding Credit

Credit score: 620 minimum Who qualifies: First-time and repeat buyers who don't meet the higher credit requirements of FirstHome or HomeAgain Down payment assistance: Up to 4% of the first mortgage amount Key feature: More flexible underwriting for buyers recovering from past credit challenges Requirement: Must complete a homebuyer education course within 180 days of closing

NoMI — No Mortgage Insurance, Lowest Payment

Credit score: 700 minimum Who qualifies: First-time and repeat buyers with stronger credit Down payment assistance: Up to 5% of the first mortgage amount Key feature: No mortgage insurance required — UHC describes it as "the lowest mortgage payment of any UHC homeownership program" No purchase price limit

How UHC Down Payment Assistance Actually Works

All four UHC programs can be paired with UHC's Down Payment Assistance (DPA) — a second mortgage that funds your down payment and/or closing costs.

Per FHA.com's UHC DPA summary: the DPA is structured as a 30-year fixed-rate second mortgage at an interest rate 2% above your first mortgage rate. It's a loan — not a grant — meaning it must be repaid over time as a second monthly payment.

The amount you can borrow depends on your program:

FirstHome or HomeAgain: Up to 6% of the first mortgage loan amount
Score: Up to 4% of the first mortgage loan amount
NoMI: Up to 5% of the first mortgage loan amount

As UHC states, with DPA you may be able to borrow your entire minimum required down payment plus all or a portion of closing costs — meaning qualified buyers can get into a home with very little cash at closing.

The critical point: DPA is a loan with a monthly payment, not free money. Your total monthly housing cost includes both the first mortgage payment and the DPA second mortgage payment. Make sure both fit your budget before applying.

Veterans Grant

Per Utah Housing Corporation's grants page, the Utah Legislature has appropriated funds specifically for veterans:

Available to active-duty military and veterans who separated within the last 5 years
Must be a first-time Utah homebuyer
Requires a valid Certificate from the Utah Division of Veterans and Military Affairs (UDVMA)
The Mortgage Reports notes UHC offers a $2,500 grant to qualifying active-duty military and veterans

To apply, take your Veterans Grant Status Validation to any lender licensed in Utah and ask about the Utah Veterans Grant. Contact the Department of Veterans and Military Affairs at 801-326-2372 for eligibility questions.

Can You Stack These Programs?

Yes — and this is where the real power is.

Multiple UHC and local programs can be combined. For example, a qualifying first-time buyer purchasing a new construction home in Utah County could potentially stack:

SB 240: Up to $20,000 (new construction only, under $450K)
UHC FirstHome Loan with competitive rate
UHC DPA: Up to 6% of the first mortgage for additional down payment/closing cost help

RefiGuide's April 2026 buyer guide documents the Nguyen family case — a family of four earning $70,000 who combined the UHC First-Time Homebuyer Assistance Program ($20,000 deferred loan), a West Valley City DPA Grant ($14,999 non-repayable), and the Chenoa Fund grant ($6,000) to cover their full down payment and closing costs with only $1,000 out of pocket.

While that specific combination used West Valley City funds, the stacking principle applies in Utah County. A UHC-approved lender can identify every program you qualify for and help you combine them for maximum benefit.

What to Know Before You Apply

Funds are limited and awarded first-come, first-served. The SB 240 program has a cap of approximately 2,500 buyers and $50 million in funds. When it's gone, it's gone until the Legislature appropriates more. Don't wait to ask.

You must use a UHC-approved lender. Not every lender in Utah is UHC-approved. The programs are only available through participating lenders. The lenders I recommend in Utah County — Aaron Morgan at Guild Mortgage (801-560-8162), James Roberts at Security Home Mortgage (801-420-1042), and Keeley Rudolph at First Colony Mortgage (801-400-6872) — are experienced with UHC programs and can confirm your eligibility quickly.

Homebuyer education is required for most programs. Most UHC programs require completion of a HUD-approved homebuyer education course. RefiGuide notes Utah State University offers an approved course. Plan for this as part of your preparation, not an afterthought.

Income and purchase price limits change. The numbers in this post are sourced from current UHC documentation, but limits are updated periodically. Always confirm current limits with a UHC lender before assuming you qualify.

"First-time buyer" is broader than you think. Under the HUD definition used by most UHC programs, a first-time buyer is anyone who has not owned a home in the past 3 years. If you owned a home previously and sold it more than 3 years ago, you may qualify as a first-time buyer again.

What to Do Right Now

Check the UHC website for current program availability, income limits, and fund status: utahhousingcorp.org
Contact a UHC-approved lender — they can run your eligibility for every available program simultaneously in the same pre-approval process
Start your homebuyer education course — most programs require it and it takes time to complete
Don't assume you don't qualify — many buyers earning moderate incomes in Utah County are surprised to find they qualify for meaningful assistance

Want to Know Which Programs You Qualify For? Let's Talk →

Frequently Asked Questions

What is the Utah SB 240 First-Time Homebuyer Assistance Program? SB 240 is a Utah Legislature program administered by the Utah Housing Corporation that provides up to $20,000 as a deferred, 0% interest loan for first-time buyers purchasing a newly constructed, never-occupied home priced at or below $450,000. No monthly payment is required — repayment is due when you sell or refinance, at the lesser of $20,000 or 50% of equity gained. You must have been a Utah resident for 12+ months and meet UHC income limits. Funds are limited.

What is the Utah Housing Corporation (UHC)? UHC is Utah's state housing finance agency. It offers four mortgage programs — FirstHome, HomeAgain, Score, and NoMI — paired with down payment assistance (DPA) of 4–6% of the first mortgage amount. Programs have different credit score minimums (620–700), income limits, and purchase price restrictions. All require using a UHC-approved lender.

Do I have to be a first-time buyer to use UHC programs? No — the HomeAgain, Score, and NoMI programs are available to both first-time and repeat buyers. The FirstHome program and SB 240 are reserved for first-time buyers (defined as no homeownership in the past 3 years). If you owned a home more than 3 years ago and sold it, you may qualify as a first-time buyer again.

Can I stack multiple programs together? Yes. Multiple UHC and local programs can be combined. For example, a qualifying first-time buyer could stack SB 240 ($20,000) with a UHC FirstHome Loan and UHC DPA (up to 6% of the loan amount). A UHC-approved lender can identify every program you qualify for and help you maximize the benefit.

What credit score do I need for UHC programs? It depends on the program: FirstHome and HomeAgain require a 660 minimum; Score requires 620; NoMI requires 700. All programs also require meeting income limits, completing a homebuyer education course, and using a UHC-approved lender.

Is there a veterans grant for Utah homebuyers? Yes. Utah Housing Corporation offers a $2,500 grant to qualifying active-duty military and veterans who are first-time Utah homebuyers and who separated within the last 5 years. Contact the Utah Division of Veterans and Military Affairs at 801-326-2372 for eligibility and your certificate.

How do I apply for UHC programs? You must apply through a UHC-approved lender. The lender will run your eligibility for all available programs simultaneously as part of the pre-approval process. Not every Utah lender is UHC-approved — confirm before you start.