First-Time Homebuyer Programs in Utah Most Buyers Miss
Here’s something that surprises almost every first-time buyer we sit down with: Utah has some of the best homebuyer assistance programs in the country — and most people have never heard of them.
We’re not talking about some obscure grant that helps 12 people a year. We’re talking about a state-funded program that has already distributed over $58.5 million to nearly 3,000 households across Utah. And there are several other programs that can stack on top of it.
Let’s walk through the ones that matter most and how you can take advantage of them.
S.B. 240: Up to $20,000 for First-Time Buyers
This is the big one. Created by the Utah Legislature in 2023, the First-Time Homebuyer Assistance Program (S.B. 240) provides up to $20,000 that you can put toward your down payment, closing costs, or a permanent interest rate buydown.
Here’s how it works:
The assistance comes as a 0% interest deferred loan — meaning you don’t make any monthly payments on it. You only pay it back when you sell or refinance, and even then, repayment is capped at 50% of your equity or $20,000, whichever is less.
To qualify, you need to meet these requirements:
• Be a first-time homebuyer (no ownership in the past 3 years)
• Be a Utah resident for at least 12 months
• Purchase a new construction home priced at $450,000 or less
• Use a Utah Housing Corporation (UHC) participating lender
As of early 2026, the Legislature is considering an additional $10 million in funding for the program and there’s even a proposed bill (H.B. 541) that would expand eligibility to include existing homes at up to $10,000. The program is still active, but funds are limited — so don’t wait.
Pro Tip: Eagle Mountain and Saratoga Springs have plenty of new construction inventory that qualifies under the $450,000 cap. This is one of the reasons we love these communities for first-time buyers.
UHC Down Payment Assistance: 4–6% of Your Loan
Utah Housing Corporation also offers a separate Down Payment Assistance (DPA) program that provides 4–6% of your first mortgage amount (up to $25,000) to cover your down payment and closing costs.
This can be combined with the FirstHome Loan program, which offers competitive interest rates for qualifying buyers. You’ll need a 660 credit score for conventional loans, and income limits apply based on your county and household size.
Here’s the real magic: You can stack S.B. 240 with UHC Down Payment Assistance. That means you could potentially receive $20,000 from S.B. 240 plus 4–6% of your loan from DPA — dramatically reducing what you need to bring to closing.
Utah Veterans Grant: $2,500 (No Repayment)
If you’re a veteran who was discharged within the past 5 years, Utah offers a $2,500 grant — not a loan, a grant — that you never have to pay back. This doesn’t require a UHC mortgage, so it’s available regardless of what type of financing you use.
Thank you for your service — and here’s some help getting into your first home.
Law Enforcement Grant: Up to $25,000
For law enforcement and correctional officers, there’s a grant of up to $25,000 for down payment and closing cost assistance. This grant is forgivable over time, meaning if you stay in your home, you eventually owe nothing.
You’ll need a 620 credit score and a UHC first mortgage to qualify.
How to Get Started
The first step is always getting pre-qualified with a UHC participating lender. They’ll know which programs you’re eligible for and can help you stack benefits to maximize your assistance.
We work with trusted local lenders who specialize in these programs and can walk you through every option available to you. We’re not lenders ourselves — we just make sure you’re connected with the right people who know the Utah-specific programs inside and out.
Buying your first home in Utah doesn’t have to feel impossible. The state wants to help you get there. You just need to know where to look.
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Cory Salisbury — Salisbury Real Estate — Agent with Equity Real Estate
Helping first-time buyers navigate the Wasatch Front market since 2012
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Q. What first-time homebuyer programs are available in Utah in 2026?
A. Utah offers several programs including S.B. 240 (up to $20,000 for new construction homes under $450,000), UHC Down Payment Assistance (4–6% of loan amount), Utah Veterans Grant ($2,500 non-repayable), and the Law Enforcement Grant (up to $25,000, forgivable). These programs can be stacked for maximum benefit. Contact Salisbury Real Estate at (801) 245-0511.
Q. How does Utah’s S.B. 240 first-time homebuyer program work?
A. S.B. 240 provides up to $20,000 as a 0% interest deferred loan for first-time buyers purchasing new construction homes priced at $450,000 or less. You must be a Utah resident for 12 months and haven’t owned a home in 3 years. No monthly payments are required — repayment is due upon sale or refinance. The program has distributed over $58.5 million to nearly 3,000 Utah households.
Q. Can I combine Utah homebuyer assistance programs?
A. Yes. You can stack S.B. 240 ($20,000) with UHC Down Payment Assistance (4–6% of your loan) for even greater savings. Veterans can also add the $2,500 Utah Veterans Grant. Work with a UHC participating lender to determine which combination of programs you qualify for.
