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: RefiGuide reports Utah County limits in the $80,000–$126,200 range depending on household size
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
Score — For Buyers Rebuilding Credit
Credit score: 620 minimum | Who qualifies: First-time and repeat buyers who don't meet the higher credit requirements | 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:
- 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
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, 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.
You must use a UHC-approved lender. Not every lender in Utah is UHC-approved. 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.
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 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
Not sure what your budget actually looks like with assistance factored in? Start with a free home valuation on your current home — or let's talk through what you can realistically afford.
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Frequently Asked Questions
What is the SB 240 first-time homebuyer program in Utah? SB 240 is a Utah state program offering up to $20,000 as a deferred, 0% interest loan for qualifying first-time buyers purchasing a new construction home priced at or below $450,000. No monthly payment is required — the loan is repaid when you sell or refinance, at the lesser of $20,000 or 50% of the home's equity gain. Funds are limited to approximately 2,500 buyers from a $50 million appropriation.
Do I qualify for first-time homebuyer programs in Utah if I owned a home before? Possibly yes. Under the HUD definition used by most UHC programs, a "first-time homebuyer" is anyone who has not owned a home in the past 3 years. If you sold your previous home more than 3 years ago, you may qualify as a first-time buyer again. Confirm your eligibility with a UHC-approved lender.
What is the income limit for Utah Housing Corporation programs? Income limits vary by program, household size, and county. For Utah County, RefiGuide reports limits in the $80,000–$126,200 range depending on household size for the FirstHome program. Other programs have different limits. Always confirm current limits directly with a UHC-approved lender — they are updated periodically.
Can you combine SB 240 with UHC down payment assistance? Yes — multiple programs can be stacked. A qualifying buyer could potentially combine SB 240 ($20,000 deferred loan), a UHC FirstHome mortgage, and UHC's down payment assistance (up to 6% of the loan amount) to cover nearly all down payment and closing costs. A UHC-approved lender can identify every program you qualify for simultaneously.
Which Utah County cities work best for SB 240? SB 240 requires new construction priced at or below $450,000. In 2026, this works best in Eagle Mountain and parts of Saratoga Springs, where new construction townhomes and entry-level single-family homes still hit that price point. Lehi's new construction median is above $450,000 in most neighborhoods, limiting SB 240 eligibility there.
What is the Utah veterans homebuyer grant? The Utah Housing Corporation offers a $2,500 grant to qualifying active-duty military and veterans who are first-time Utah homebuyers. Eligibility requires a valid Certificate from the Utah Division of Veterans and Military Affairs (UDVMA) and separation from service within the last 5 years. Contact the Department of Veterans and Military Affairs at 801-326-2372 for eligibility questions.
Related reading:
- Free Tools and Resources for Lehi Home Buyers in 2026
- How to Qualify to Buy a Home in Saratoga Springs
- Eagle Mountain Townhomes in 2026: Prices and Neighborhoods
- The #1 First-Time Buyer Mistake in Utah County: Shopping Without a Pre-Approval
- Will Shopping Around for a Mortgage Hurt Your Credit Score?
- Rate Buydowns in Utah County 2026: Is It Worth It?
Sources: Utah Housing Corporation — Homeownership Programs; Utah Housing Corporation — SB 240 First-Time Homebuyer Assistance Program; Utah Senate — SB 240 First-Time Homebuyers Assistance Program; FHA.com — Utah Housing Corporation Down Payment Assistance; RefiGuide — Utah First-Time Home Buyer Programs, April 2026 — Nguyen family case study, income limits, USU education course; The Mortgage Reports — Utah First-Time Home Buyer Programs and Grants — veterans grant amount.
Written by Kat Ashby, Principal Broker and Realtor® at RootQuest Realty LLC in Saratoga Springs, Utah. Kat holds a Utah Division of Real Estate Principal Broker license (Credential #10382396-PB00) — a designation that requires demonstrated experience, additional coursework, and a separate licensing exam beyond the standard agent license. She has been actively selling in Utah County since 2020, with deep experience across Lehi, Eagle Mountain, Saratoga Springs, and the broader Wasatch Front, specializing in buyer representation, new construction, and corporate relocation through Altair Global. She is fluent in English and Portuguese, earned her bachelor's degree in Psychology from Brigham Young University, and lives in the community she sells in.
