Utah First-Time Home Buyer Guide 2026
This guide for Utah first-time home buyers covers Utah Housing Corporation’s FirstHome Loan, Down Payment Assistance second mortgages, the New Construction Program Assistance, and step-by-step guidance for first-time buyers in Utah.
Utah First-Time Home Buyer Programs
Utah Housing Corporation (UHC) is the state’s housing finance agency and the primary source of first-time homebuyer assistance in Utah. UHC does not lend directly to buyers — instead, it works through a network of participating lenders who originate the first mortgage and layer UHC assistance on top.
| Program | Loan Type | Min Credit Score | Best For |
|---|---|---|---|
| FirstHome Loan | FHA, VA, or Conventional first mortgage | 660 (tri-merge) | Lowest UHC rate; first-time buyers only |
| FHA/VA Mortgage | FHA or VA first mortgage | 620 | Slightly higher rate; first-time AND repeat buyers |
| Freddie Mac HFA Advantage | Conventional first mortgage | 680 | Lower mortgage insurance costs |
Down Payment Assistance Second Mortgage
Utah Housing’s Down Payment Assistance (DPA) is a second mortgage that pairs with any of the three first mortgage programs above. Buyers choose between two structures:
| Option | Assistance Amount | Structure | Payment |
|---|---|---|---|
| Traditional DPA | 6% of first mortgage loan, max $27,500 | 30-year fixed second mortgage; rate is 1% above the first mortgage rate (not to exceed 8%, not less than the first mortgage rate) | Monthly payment required |
| Deferred DPA | 3.5% of first mortgage loan, max $27,500 | 30-year fixed second mortgage at 3.5% deferred simple interest | No monthly payment — principal and deferred interest due at sale, refinance, or maturity |
New Construction Program Assistance: The Utah Legislature has appropriated $50 million to assist approximately 2,500 first-time homebuyers purchasing new construction and to incentivize builders to build affordable housing. Eligible buyers can receive up to $20,000 in Program Assistance, usable for down payment, closing costs, and/or a permanent interest rate buydown. Funding is limited — check current availability at utahhousingcorp.org.
Income and Purchase Price Limits
Utah Housing income and purchase price limits vary by county grouping. The figures below are approximate for the FirstHome program — always verify current limits at utahhousingcorp.org before applying.
| County Group | Income Limit (1–2 person HH) | Max Purchase Price |
|---|---|---|
| Box Elder, Beaver, Cache, Carbon, Daggett, Emery, Millard, Rich, Sevier, Uintah | ~$118,000 | ~$566,300 |
| Salt Lake | ~$126,100 | ~$666,600 |
| Tooele | ~$121,300 | ~$666,600 |
| Grand | ~$127,500 | ~$878,300 |
| Juab, Utah | ~$143,000 | ~$769,100 |
| Davis, Morgan, Summit, Wasatch, Weber | ~$141,400 | ~$778,500 |
| Duchesne, Garfield, Iron, Kane, Piute, San Juan, Sanpete, Wayne | ~$141,600 | ~$692,200 |
| Washington | ~$118,000 | ~$635,300 |
The FHA/VA Mortgage program uses a qualifying income limit without a separate purchase price limit — loan amount is instead capped by the county’s FHA or VA-applicable loan limit. See our Utah FHA Loan Requirements guide for county-by-county limits.
Utah Housing Eligibility Requirements
To use the FirstHome program, buyers must meet all of the following requirements:
- First-time homebuyer: Required for FirstHome (not required for the FHA/VA Mortgage or Freddie Mac HFA Advantage programs)
- Owner-occupancy: Must live in the home as a primary residence
- Credit score: Minimum 660 for FirstHome, 620 for FHA/VA Mortgage, 680 for Freddie Mac HFA Advantage
- Income limits: Household income must be at or below Utah Housing’s limit for your county group
- Participating lender: Must use a Utah Housing-participating lender — not all Utah lenders participate
- Homebuyer education: May be required depending on the specific program and loan type
Combine with New Construction Assistance: Buyers purchasing new construction from a participating builder may be able to combine DPA with the New Construction Program Assistance (up to $20,000) for additional help with down payment, closing costs, or a rate buydown. Ask your Utah Housing-approved lender whether your new-construction purchase qualifies.
Step-by-Step Buying Process for Utah First-Time Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | You need at least 660 for FirstHome, 620 for FHA/VA Mortgage, or 680 for Freddie Mac HFA Advantage. |
| 2 | Find a Utah Housing-participating lender | Not all Utah lenders participate in UHC programs. Use Utah Housing’s lender list at utahhousingcorp.org. |
| 3 | Get pre-approved | Your lender will review income, assets, credit, and determine which Utah Housing programs you qualify for. |
| 4 | Choose your DPA structure | Decide between the Traditional (6%, with payment) or Deferred (3.5%, no payment) second mortgage based on your monthly budget. |
| 5 | Ask about New Construction Assistance | If buying new construction, ask whether the $20,000 Program Assistance is available and still funded. |
| 6 | Make an offer | A pre-approval letter from a Utah Housing lender strengthens your offer in Utah’s competitive market. |
| 7 | Open escrow / title | Utah closings are typically handled by a title company. |
| 8 | Close and take title | Review your Closing Disclosure carefully at least 3 business days before closing. |
