Utah Housing Corporation is the closest thing Utah has to a state first-time-buyer program, and it is easy to misunderstand in both directions. Some buyers assume it is free money. Others never hear of it, because it only reaches you through a lender who participates and thinks to mention it.
What it is: a menu of first mortgages with below-market or competitive rates, plus second loans that cover the down payment, plus a pool of zero-interest money for first-time buyers of new homes. All of it has limits, and most of the help is a loan you repay. This guide lays out what is open in October 2026, the Utah County numbers, and what each piece costs. Figures come from UHC's own pages as checked this month. It is general information, not financial advice, and UHC's terms change, so confirm with a participating lender before you count on any of it.
For the general mechanics of assistance loans (repayable, deferred and forgivable seconds, and the recapture tax), see our down payment assistance explainer. This page is the Utah Housing specifics.
What is open and what is not
UHC's homeownership programs page lists six first mortgage programs. Three are shown as active.
| Program | Status | Minimum credit | Who it is for |
|---|---|---|---|
| FirstHome | Active | 660 | First-time buyers |
| FHA/VA Mortgage | Active | 620 | Repeat buyers, or first-time buyers who do not fit FirstHome |
| Freddie Mac HFA Advantage | Active | 680 | First-time or repeat buyers |
| HomeAgain | Temporarily suspended | 660 | Repeat buyers |
| NoMI | Temporarily suspended | 700 | No mortgage insurance |
| Score | Temporarily suspended | 620 | Buyers recovering from credit problems |
FirstHome typically carries UHC's lowest rate, with lower income and price limits. FHA/VA is priced slightly higher, according to UHC, and open to repeat buyers. HFA Advantage may carry a higher rate but lower mortgage insurance costs, which can make the monthly payment lower.
If a website or a relative tells you about Score or HomeAgain, check the status before you plan around them. As of this month, they are paused.
The Utah County limits
From UHC's limits page, where Utah County shares a row with Juab County:
FirstHome
- Household income, 1 to 2 people: $143,000
- Household income, 3 or more people: $165,200
- Maximum purchase price: $769,100
FHA/VA Mortgage
- Income: $165,200, any household size
- No purchase price limit; the loan is capped at the FHA limit, which for a one-unit home in Utah County is $601,450 in 2026
- A two-unit, owner-occupied version allows $165,200 plus annual qualifying rental income, which is useful for a duplex house-hack
Freddie Mac HFA Advantage
- Income: $165,200, any household size
- No purchase price limit; the loan is capped at Freddie Mac's conforming limit ($832,750 baseline for 2026)
Two notes on reading these. "Income" is measured differently by program: FirstHome counts household members who will sign the deed of trust, while the FHA/VA and HFA Advantage limits use qualifying income. And because the FHA/VA and HFA Advantage limits do not shrink for smaller households, a single buyer or a couple faces the same $165,200 ceiling as a family of five.
The two down payment loans
UHC's down payment assistance can be paired with any of its first mortgages, but only with one of its first mortgages: you must qualify for a Utah Housing first loan to get the second. Its realtor and builder page gives the terms.
Traditional DPA
- 6 percent of the first mortgage, up to $27,500
- Rate: 1 percent above the first mortgage rate, capped at 8 percent, and never below the first mortgage rate
- 30-year fixed, monthly payment required
Deferred DPA
- 3.5 percent of the first mortgage, up to $27,500
- Rate: 3.5 percent simple interest, deferred
- No monthly payment; principal and accrued interest are due at maturity, sale or refinance
What those terms mean on a real loan
Take a first mortgage of about $390,000, which is roughly what a 3.5 percent down FHA buyer borrows on a house of just under $400,000 once the 1.75 percent upfront mortgage insurance is financed. These are illustrations; your lender's numbers will differ.
Traditional: 6 percent is $23,400, under the cap. Even at the 8 percent maximum rate, that second loan's payment is about $172 a month for 30 years, on top of the first mortgage. It covers more than the minimum down payment, so it can help with closing costs too.
Deferred: 3.5 percent is $13,650. That comes close to the FHA minimum down payment on that house (about $13,900) without covering all of it, because it is figured on the loan rather than the price. Simple interest at 3.5 percent adds about $478 a year. The balance owed grows like this:
| Years after closing | Balance owed on the deferred loan |
|---|---|
| 3 | About $15,080 |
| 5 | About $16,040 |
| 7 | About $16,990 |
| 10 | About $18,430 |
No payment until then, but that balance comes out of your proceeds when you sell, and it comes due if you refinance. In a market where rates are high now and many buyers hope to refinance later, that last trigger matters. Our guide to refinancing in Utah explains how to factor it in.
The question to ask your lender is the same one our assistance explainer recommends: what would my first mortgage rate be without UHC's program? The assistance is worth it when the cash at closing outweighs any rate difference over the years you expect to keep the loan.
The $20,000 for new construction
This is the newest and most generous piece, and the one with the most rules. Utah Senate Bill 240 (2023) created the First-time Homebuyers Assistance Program, which UHC administers. UHC's program page and its FAQ, updated July 16, 2026, set the terms:
- Amount: up to $20,000, for down payment, closing costs or a permanent rate buydown
- Home: new construction, or newly built and never occupied. Detached homes, owner-occupied two-unit dwellings, condos, townhomes and manufactured homes on permanent foundations qualify
- Price cap: $450,000
- Buyer: first-time buyer under the federal three-year definition, Utah resident for at least 12 months before closing, qualifying for a Utah Housing mortgage through a participating lender
- Occupancy: within 60 days of purchase
- Terms: 0 percent interest, no monthly payments, secured by a recorded deed of trust
- Repayment: on sale or refinance, the lesser of the assistance received or 50 percent of the equity. If you refinance into another qualifying loan, the program loan may be resubordinated with nothing due then
- Stacking: it can be combined with UHC's down payment second (it then records in third position). It cannot be combined with the veteran or law enforcement grants
- Funding: sized for about 2,400 buyers and available until depleted. UHC's homepage showed a remaining count of 329 when we checked in October 2026
The $450,000 cap is the filter to check first: compare it with the builder's asking price before planning around this money. Our guide to townhomes and condos in Utah County covers the financing traps in that product, and our comparison of new construction and resale covers builder incentives that may interact with it.
The 50 percent of equity rule is the part to understand before signing. If the home gains value and you sell, you repay the full $20,000 (because it is the lesser amount). If the home has little equity when you sell, you repay half of what equity there is. It is a soft loan, not a grant.
Grants that do not get repaid
UHC's grants page lists two:
Utah Homebuyer Veteran Grant: up to $2,500 cash for first-time Utah homebuyers who are service members or veterans separated within the last five years. No repayment. Our FHA, VA and USDA guide covers the VA loan it often pairs with.
Law Enforcement Officer Assistance Program: aimed at recruiting and retaining Utah law enforcement and correctional officers. UHC's homepage showed this pool at zero remaining in October 2026.
The local alternative: Provo City's loans
Utah Housing is not the only door. Provo City runs its own down payment assistance, and for lower-income buyers its terms are stronger:
- Home Purchase Plus: up to $60,000 for a home in Provo
- Loan to Own: up to $40,000 for a home anywhere in Utah County except Fairfield, Highland and Woodland Hills
- Both: 0 percent, deferred until the home stops being your primary residence, with up to 50 percent forgiven at the end of an affordability period of 5 to 15 years depending on the amount
- Household income at or below 80 percent of area median; Provo lists the limits effective June 1, 2026 as $66,750 for one person up to $95,350 for four
- Purchase price up to $495,000, minimum mid credit score of 650, at least $1,000 of your own money, liquid assets of $15,000 or less after closing, and a homebuyer education class (Provo lists Community Action Services and NeighborWorks Orem for in-person classes and USU Extension online)
- A $5,000 penalty if the home is sold or vacated within two years
The two systems serve different households. Provo's loans are larger and partly forgivable but limited to lower incomes. UHC's limits reach much higher incomes but the help is smaller and repayable. Ask the city office at 445 W Center Street, Suite 200, whether the two can be layered on your purchase; it depends on the first mortgage you choose.
How to use any of this, in order
- Find a UHC participating lender first. Not every lender is one. UHC's site lists them, and the lender determines which program and how much assistance fits.
- Ask for two quotes: the UHC package, and the lender's best loan with no assistance.
- Check the price cap against what you are shopping. $769,100 for FirstHome, $450,000 for the new-construction money, $495,000 for Provo's loans.
- Read the second mortgage note. Know whether it has a payment, when it comes due, and what a refinance triggers.
- Keep every document from closing. You will need the deferred balance and the program terms when you sell or refinance.
UHC's phone numbers are (801) 902-8200 and (800) 284-6950. For comparing lenders once you have quotes, our guide to shopping a mortgage lender in Utah explains how to read the Loan Estimates side by side. If you are not sure you are ready to buy at all, our rent-or-buy math for Provo is the place to start.
Frequently Asked Questions
What is Utah Housing Corporation?
What are the Utah Housing income limits in Utah County?
How much down payment assistance does Utah Housing offer?
What credit score do I need for a Utah Housing loan?
What is the $20,000 first-time homebuyer program for new construction?
Does Utah Housing count me as a first-time buyer if I owned a home before?
Is there a Utah grant for veterans buying a home?
Does Provo have its own down payment program?
Sources
The facts in this guide were checked against these sources. Hours, fees and rules change, so confirm anything time-sensitive with the source before you go. How we make Provo.com.
- Down Payment Assistance, Provo City. Checked October 19, 2026.
- FHFA Announces Conforming Loan Limit Values for 2026, FHFA. Checked October 19, 2026.
- Utah Housing Corporation home page, Utah Housing Corporation. Checked October 19, 2026.
- Homeownership Programs, Utah Housing Corporation. Checked October 19, 2026.
- Down Payment Assistance (realtors/builders), Utah Housing Corporation. Checked October 19, 2026.
- Down Payment Assistance (homebuyer), Utah Housing Corporation. Checked October 19, 2026.
- Income and purchase price limits, Utah Housing Corporation. Checked October 19, 2026.
- First-time Homebuyers Assistance Program (SB 240), Utah Housing Corporation. Checked October 19, 2026.
- FTHB Program Assistance FAQ (updated 7/16/26), Utah Housing Corporation. Checked October 19, 2026.
- Grants & Other Assistance Programs, Utah Housing Corporation. Checked October 19, 2026.
- Utah County, UT mortgage loan limits, Homebuyer.com. Checked October 19, 2026.
