Utah Homebuyer Grants & Down Payment Assistance Programs

First-Time HomebuyerHome Buying GuideMortgage EducationUtah Real EstateReal Estate Strategy
Written By Broch Lassig

A Strategic Guide to Building Ownership Without Breaking the Bank

Buying a home in Utah can feel impossible when you look at today’s prices and required down payments. The truth? You might not need nearly as much cash as you think.

Utah has a range of programs—state, local, and private—that can dramatically lower the barrier to entry for first-time buyers, veterans, and even step-up homeowners. Some truly help you build wealth faster. Others come with hidden costs or long-term trade-offs.

This guide will help you understand the difference so you can make a smart, long-term move toward ownership.

Utah Housing Corporation (UHC): The State’s Safety Net

Utah Housing is the backbone of the state’s homebuyer support. It offers multiple down payment assistance and grant options designed to get more Utahns into homes.

How It Works

UHC provides financing through approved lenders like The Lassig Team at CrossCountry Mortgage. Buyers can combine their main mortgage with either a traditional or deferred down-payment loan, plus targeted grants for veterans, law enforcement, and first-time new-construction buyers.

Program Highlights

Down Payment Assistance Loans:

Types:

  • Traditional Down Payment Loan – Up to 6% of the first mortgage amount; fully amortized second loan with monthly payment.

  • Deferred Down Payment Loan – Up to 3.5%; 0% interest, no monthly payment, balance due at sale or refinance.

Programs:

  • FirstHome Program – For first-time buyers; FHA financing; minimum 660 credit score.

  • FHA/VA Program – Not restricted to first-time buyers; minimum 620 credit score.

  • Freddie Mac HFA Advantage Program – Not restricted to first-time buyers; minimum 680 credit score.

    Note: Household income and purchase-price limits vary by county.See full limits here → UHC Income & Purchase Limits

Grants:

  • Veteran Grant – $2,500 true grant for eligible veterans or active-duty buyers.

  • Law Enforcement Grant – Forgivable grant up to $25,000 (3.5% of purchase price) for qualifying law enforcement or correctional officers.

  • New Construction Grant – $20,000, interest-free and payment-free; available to first-time buyers of new construction homes.

    Note: Certain limitations apply. Learn more here → UHC Grant Programs Overview

Pros

  • Little or no upfront cash needed

  • True grants for veterans, officers, and new construction buyers

  • Can reserve funds before going under contract

Cons

  • Higher fees and rates than standard loans

  • A second loan can increase payment and limit refinance options

  • Often starts with minimal equity (“underwater” at closing)

Bottom Line

If no other options exist, UHC programs can make ownership possible when savings are limited. Treat them as a temporary launchpad, not a permanent financing strategy.

📍 Learn more → Utah Housing Homebuyer Page

City & County Grant Programs: Hidden Local Gems

Several Utah cities and counties offer their own homebuyer grants—some of the best programs available when funding is active.

How It Works

These programs are offered by local municipalities or community development agencies and typically provide forgivable or deferred loans covering down payment, closing costs, or principal reduction.They are usually subject to income limits (often ≤ 80% of area median income), primary residence requirements, and other restrictions.

Check your income eligibility here → Fannie Mae AMI Lookup Tool

Program Highlights

  • Provo – Home Purchase Plus: Up to $60,000 in forgivable or deferred assistance for income-qualified buyers. Program Details →

  • Ogden – Own in Ogden: Up to $20,000 for Ogden City buyers, with enhanced benefits for first responders. Program Details →

  • Midvale: Typically $25,000–$30,000, usually forgivable after 5–10 years. Program Details →

  • Davis County Homeownership Assistance: Up to $50,000 for first-time buyers; income limits apply. Program Details →

  • Other Utah Cities: Salt Lake City, Murray, West Valley, West Jordan, Tooele, and others also offer programs. Full statewide list →

Pros

  • Often forgivable or deferred (no repayment if terms met)

  • Substantial dollar amounts available

  • Can sometimes stack with state or lender-based grants

Cons

  • Strict income and residency requirements

  • Funding availability varies by city

Bottom Line

City and county programs are excellent if you qualify by location and income. Funding cycles change—so early application and preparation are key.

National Down Payment Programs: Chenoa & Essex

Two national down payment programs—Chenoa and Essex—often appear in Utah when local or state funds are unavailable. While they can help certain buyers qualify when other resources are exhausted, they typically come with higher long-term costs.

How It Works

Both programs layer a second mortgage or forgivable second lien over an FHA first loan to cover the 3.5–5% down payment requirement.

  • Chenoa (CBC Mortgage Agency): Offers repayable or forgivable second loans, depending on product type and pricing.

  • Essex: Provides similar structures—either a repayable or forgivable second—with eligibility and terms varying by lender.

These programs are available year-round and can be used statewide, regardless of local program funding.

Pros

  • Consistent availability when other assistance programs are temporarily paused

  • Allows access to FHA financing with little to no out-of-pocket cash

  • Straightforward qualification criteria similar to FHA loans

Cons

  • Higher total loan cost: The first mortgage rate is typically elevated, and repayment or forgiveness terms vary.

  • Refinance limitations: The structure can delay or complicate future refinance opportunities.

  • Complex terms: Forgiveness timelines, payment triggers, and secondary servicing can be confusing for borrowers.

Bottom Line

Chenoa and Essex can serve as backup options when other local or lender-based programs are unavailable. However, for most buyers, Utah Housing, city and county grants, or The Lassig Team’s proprietary programs (SmartStart, VLIP, and Solar Assist) provide lower costs, cleaner terms, and more flexibility. If you’re offered one of these national programs, it’s worth getting a second opinion to evaluate your total cost of ownership.

CrossCountry Mortgage Proprietary Programs: Smarter Paths to Ownership

The Lassig Team at CrossCountry Mortgage offers exclusive in-house programs that make homeownership more accessible without relying on second loans or restrictive grants.

How It Works

These programs can be applied toward **down payment, closing costs, or interest-rate buydowns.** Some are income-based; others are open to all buyers. Together, they give clients multiple ways to reduce upfront costs, improve affordability, and preserve refinance flexibility later.

Program Highlights

  • SmartStart: Up to $4,000 toward down payment, closing costs, or rate buydown for buyers earning ≤ 80% of area median income.

  • VLIP (Very Low Income Program): Up to $5,250 for buyers earning ≤ 50% of area median income.

  • CCM Solar Assist: Up to 5% assistance built directly into the primary mortgage—no income limits.

    • Can include solar panels or energy-efficiency upgrades to reduce or eliminate utility bills.

    • Helps improve long-term affordability and sustainability.

    • No second mortgage, repayment, or refinance restrictions.

    • Available on both purchase and refinance transactions.

Pros

  • No second mortgage or repayment

  • Energy-efficient options lower long-term housing costs

  • Refinance flexibility and sustainability focus

Cons

  • SmartStart and VLIP limited by income thresholds

Bottom Line

These are clean, cost-efficient alternatives to traditional assistance programs—ideal for buyers seeking long-term flexibility and lower true cost of ownership.

Federal Loan & Grant Programs

Federal programs are the cornerstone of affordable homeownership. They’re not “assistance” programs but rather full-financing options that allow qualified buyers to purchase with little or no down payment.

How It Works

These are government-backed mortgage programs with unique eligibility requirements—whether you’re a veteran, buying in a rural area, or purchasing a **HUD-owned home.** They often provide 100% financing, competitive rates, and fewer restrictions than layered assistance programs.

Program Highlights

  • VA Loans:

    • 100% financing (no down payment)

    • No overlays or lender fees with The Lassig Team at CrossCountry Mortgage

    • Flexible credit and debt-to-income guidelines

    • Sellers can pay off non-mortgage debts to improve qualification

  • USDA Loans:

    • Zero-down financing for eligible rural areas

    • Still includes areas like Eagle Mountain, Saratoga Springs, Tooele, Payson, Heber, and South Willard

    • Income and property restrictions apply

  • HUD $100 Down Program:

    • Buy a HUD-owned home with only $100 down using FHA financing

    • Properties sold as is through the HUD Home Store

    • Can be paired with the Good Neighbor Next Door Program offering a 50% discount for law enforcement officers, teachers (Pre-K–12), firefighters, and EMTs👉 Program Details →

Pros

  • Little to no down payment required

  • Stable, federally backed programs

  • Long-term cost efficiency compared to local assistance

Cons

  • VA requires veteran eligibility

  • USDA limited to rural-designated areas

  • HUD homes may need repairs or updates

Bottom Line

Federal loan programs remain some of the most powerful—and underutilized—financing options in Utah. They’re worth exploring before turning to layered grant structures.

Alternative Funding Strategies: Creative Paths to Ownership

This is one of The Lassig Team’s favorite categories—because it’s where smart financial planning meets homeownership strategy.Instead of relying solely on assistance programs (many of which come with strings attached), buyers can often unlock better terms by using their own assets strategically.

  • 401(k) Loan or Limited Withdrawal: You’re reallocating, not abandoning. With a 401(k) loan, you repay yourself interest. We’ll map cash flow (pause new contributions, route that to repayment) so affordability works.

  • IRA Withdrawals: Roth contributions are generally tax/penalty-free to withdraw; traditional IRAs may trigger tax + 10% penalty if under 59½. Coordinate with your CPA first.

  • Secured Loans: Borrow against free-and-clear assets (car/RV/boat) at potentially lower cost than high-rate assistance loans.

  • Joint Venture / Co-Investment: Partner with family/friends to split down payment and equity via a clear agreement—diversifies risk and gets you in the game sooner.

📘 Want the frameworks and math? Grab our free Holistic Mortgage Planning eBook—we break down when these alternatives outperform assistance programs and how to implement them step-by-step.

Final Takeaway

Programs are tools, not shortcuts. Some open doors with minimal downside. Others raise your payment, limit refinance options, or leave you underwater at the start. The win is matching your goals, cash position, and time horizon to the right tool—and sequencing moves so you keep optionality.

The Lassig Team at CrossCountry Mortgage does this every day for Utah buyers and for realtors who want a strategic edge with clients.

Let’s engineer your path to ownership.

📍 Apply: apply.lassigteam.com | ☎️ 801-713-4000

Helpful Links

Disclosure

This information is provided for educational and informational purposes only and should not be construed as financial, tax, or legal advice. Loan program availability, qualification requirements, and grant terms are subject to change. Always consult with a licensed mortgage professional, tax advisor, or attorney for guidance specific to your situation.

Broch Lassig
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