Utah’s new $20,000 first-time homebuyer assistance program will become available July 1, 2023 to qualifying residents. The funding is a result of bill SB240, created by the Legislature earlier this year and sponsored by Senate President Stuart Adams, R-Layton. The program is for new construction and will provide a loan that could be used for any combination of a down payment, closing costs or to permanently buy down the mortgage interest rate. The loans will not have monthly payments.
Recipients will have to pay the loan back only when they sell the home or refinance the mortgage. To qualify, the newly built residential units must be priced at or below $450,000. The price limit gives builders an incentive to build affordable housing.
Utah residents can qualify for the assistance as long as they or their spouse had no ownership in a principal residence in the last three years. Displaced homemakers and single parents who owned a home with their spouse while married are exempt from that waiting period. A resident who has already entered into a construction contract can still qualify for the program as long as they close on the purchase after July 1.
The program will be administered by Utah Housing Corporation. It is anticipated that there will be income limits that will be similar to Utah Housing’s non-FirstHome income limits. Income limits will be further defined when program rules are published. Eligible property types include detached single-family homes, condominiums, townhomes, or similar residential dwellings, including manufactured or modular homes attached to a permanent foundation.