Utah Quietly Has Some of the Best First-Time Buyer Programs in the Country
Most Utah buyers leave real money on the table because they never hear about these programs. The state has distributed over $58.5 million to nearly 3,000 households through various first-time buyer initiatives — and the funds have not run out yet.
S.B. 240: Up to $20,000 for First-Time Buyers
Created by the Utah Legislature in 2023, S.B. 240 provides up to $20,000 as a 0% interest deferred loan. You can use the funds for:
- Down payment
- Closing costs
- Permanent interest rate buydown
You do not make monthly payments. The loan is only repaid when you sell or refinance, and the repayment is capped at 50% of your equity or $20,000 — whichever is less.
S.B. 240 Eligibility
- First-time homebuyer (no ownership in the past 3 years)
- Utah residency for at least 12 months
- New construction home priced at $450,000 or below
- Must use a Utah Housing Corporation participating lender
UHC Down Payment Assistance: 4-6% of Your Loan
A separate program provides 4-6% of your first mortgage amount (up to $25,000) in down payment assistance. It stacks with S.B. 240, meaning combined assistance can exceed $25,000. Minimum 660 credit score, with county-specific income limits.
Utah Veterans Grant: $2,500 Non-Repayable
Veterans discharged within the past five years qualify for a $2,500 non-repayable grant, available regardless of loan type (VA, FHA, conventional).
Law Enforcement Grant: Up to $25,000
Police, sheriffs, and correctional officers can access up to $25,000 in forgivable grant assistance. Requires 620 credit and a UHC mortgage.
Where to Use These Programs
Eagle Mountain and Saratoga Springs have the most qualifying new construction inventory because townhomes and starter homes still fall under the $450,000 S.B. 240 cap there. Other markets have largely priced themselves out of the program.
Next Steps
Start with a UHC participating lender to confirm which programs you qualify for. Then contact us and we will match you with new construction inventory that qualifies. You can also browse our buyer resources for more detail on structuring an offer around these programs.
