Layton City provides a generous home down payment grant to qualified homebuyers. The City’s At Home in Layton program provides a $10,000 grant to help with either the required loan down payment, closing costs, or principal reduction.
The City directs federal Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development’s (HUD) that span each year from July 1 through June 30. The previous CDBG program year saw eight Layton City households assisted with down payment grants.
Down Payment Assistance (DPA) is intended to assist low-to-moderate income (LMI) households in need of funds to cover the required down payment for the purchase of a home. DPA is awarded as a deferred loan with no payments and no interest that is forgivable after a period of time. Grants are secured by a Promissory Note and Trust Deed. If the house is sold before the end of the fifth year from the closing date, at least a portion of the funds would need to be repaid to the City. If the applicant stays at their new residence for at least five years, they are free and clear of any repayment requirement.
Mortgage rates in Utah currently average just over 7% for a 30-year fixed mortgage, and just over 6% for a 15-year fixed mortgage. With the increase in interest rates and prices, the majority of Utah’s households are currently priced out of a median-priced home. Some house-seekers are faced with the tough choice of spending ever-increasing shares of their pay on housing costs. This widening gulf between the cost of available housing and what homebuyers actually pay is the primary barrier to Utah’s current housing dilemma.
An applicant’s eligibility review results will be provided within two to three business days after a fully completed application is submitted. Incomplete applications cause delays and may not be approved. The entire processing time takes about two weeks. Qualified applicants receive their financial award on a first come, first qualified basis.
To apply for home down payment assistance, contact Morgan Cloward, Layton City CDBG & Economic Development Specialist, mcloward@laytoncity.org, 801-336-3770.