DPA and Loan Programs
Utah Housing Corporation loans allow an eligible homebuyer, to borrow all or a portion of their down payment and closing costs. Borrowers are able to purchase a home with FHA, VA, or Freddie Mac financing with little or no cash investment through an approved Utah Housing Participating Lender.
Down Payment Assistance Second Mortgage:
- An eligible borrower can obtain a second mortgage to use for the down payment and closing costs needed to purchase a home. A homebuyer can borrow up to:
- 6% of the FirstHome Loan & FHA/VA Mortgage (FHA/VA Mortgage goes live 2/14/23)
- 6% of a Freddie Mac HFA Advantage, not to exceed $25,000
- The Second Mortgage is a 30-year fixed-rate loan with an interest rate that is 1% higher than the First Mortgage interest rate. 1% higher than the first mortgage, not to exceed 8% but not less than the Utah Housing first mortgage interest rate.
- Utah Housing Corporation services both the First Mortgage and the Second Mortgage. Borrowers will make both mortgage payments to Utah Housing Corporation.
First–time Homebuyer Program Assistance:
- The Utah Legislature appropriated $50 million to assist approximately 2,500 first-time homebuyers and incentivize builders to produce affordable housing units throughout the state.
- You may receive up to $20,000 in Program Assistance and the funds may be used for down payment, closing costs, and/or a permanent interest rate buy down for the qualifying mortgage loan.
Interest Rates:
A UHC first mortgage loan is a 30-year fixed-rate loan. Current Interest Rates are located on the Utah Housing Website. Only Utah Housing approved Participating Lenders can offer the following loan programs and interest rates:
- FirstHome Loan: typically has the lowest UHC interest rate, lower purchase price, and income limits. This loan is for first-time homebuyers with a minimum credit score:
- 660 tri-merge credit report
- FHA/VA Mortgage: has an interest rate slightly higher than FirstHome. First-time homebuyers and homebuyers who have previously owned a home can apply for this loan. The income and sales price limits are higher than a FirstHome loan. This loan is for home buyers with:
- 620 minimum credit score
- Freddie Mac HFA Advantage: may have a higher interest rate, but lower mortgage insurance costs, which may result in lower monthly payments. This loan is for homebuyers with a minimum credit score:
- 700 minimum credit score