How to Buy a New Herriman Home in 2024 Using Utah's $20,000 Grant

Most people think buying a new home in Herriman right now means swallowing a 7% mortgage rate and calling it a win. They see the new townhome developments popping up along the Mountain View Corridor, do the math on a $420,000 purchase, and walk away convinced they need to wait another year.

What they don't know is that Utah quietly handed first-time buyers a $20,000 gift. And Herriman builders, sitting on unsold inventory as we head into winter, are throwing in rate buydowns that can drop your interest rate by two full points.

Stack them right, and you're looking at a monthly payment that feels like 2021 all over again.

This is not a secret program. It's Senate Bill 240, passed in 2023, and it's designed specifically for new construction. The catch? The home has to be priced at or below $450,000. That rules out most single-family homes in Herriman. But it opens the door wide on new townhomes and condos.

We're going to walk through exactly how this works, where to find the inventory, and why showing up to a model home without your own agent is the fastest way to leave money on the table.

The Current Rate Reality and Why Herriman Builders Are Sweating

As of late 2024, the average 30-year fixed mortgage rate is hovering right around 7%. Some days it's 6.9%. Some days it's 7.1%. Either way, it's high enough to scare off a lot of buyers.

Builders know this. They also know they have dozens of finished townhomes sitting empty in Herriman's newest developments. These are move-in-ready units with landscaping, appliances, and HOA docs already filed. The builder has already paid for the dirt, the framing, the drywall, and the granite countertops.

Every month a unit sits empty, they're paying interest on their construction loan. So they're motivated. Really motivated.

That's why you're seeing builder concessions that were unthinkable two years ago. Permanent rate buydowns into the 5% range. Paid closing costs. Free fence and landscaping upgrades. Even cash back at closing in some cases.

This is not charity. This is panic dressed up as a sales event. And if you know how to negotiate, it's your opportunity.

What S.B. 240 Actually Gives You

Utah's First-Time Homebuyer Assistance Program, created under Senate Bill 240, offers up to $20,000 in down payment and closing cost assistance. You can also use it to buy down your interest rate.

Here's how it works.

The money comes as a forgivable second mortgage. If you live in the home for at least five years, the loan is forgiven. You never pay it back. If you sell or refinance before five years, you owe a prorated amount.

To qualify, you need to meet a few rules. You must be a first-time homebuyer, which Utah defines as someone who hasn't owned a home in the past three years. You need to complete a homebuyer education course, which takes about six hours online. Your household income must fall below certain limits, which vary by county and household size. For Salt Lake County in 2024, a family of four can earn up to about $112,000 and still qualify.

The biggest rule? The home must be newly constructed and priced at or below $450,000.

That price cap is the filter. It rules out most single-family homes in Herriman, where the median new build is pushing $500,000 or more. But it perfectly captures the new townhome inventory along the Mountain View Corridor and in developments near the Herriman Towne Center.

Our buyers page breaks down the full income limits and qualification steps if you want to see where you stand.

Where to Find S.B. 240 Inventory in Herriman

Herriman is building fast. But not all of it fits the $450,000 cap.

Single-family homes in neighborhoods like Herriman Springs or the Olympia development are beautiful. They also start north of $500,000. You're not stacking a state grant on those.

The sweet spot is townhomes and condos. These are usually two or three stories, attached units with small yards or patios. They're clustered in the newer sections of town near 13400 South and along the Mountain View Corridor.

Builders like Garbett Homes, Ivory Homes, and Fieldstone Homes have active townhome projects in Herriman. Many of these units are priced between $390,000 and $440,000. That's the zone.

You're looking for move-in-ready inventory. Spec homes. Homes where the builder already picked the finishes and built the unit hoping someone would come along and buy it. These are the ones where builders are most willing to negotiate, because they need them off the books.

If you walk into a model home and the agent says, "We have two units available for immediate close," that's your cue to start talking numbers.

Check out our Herriman real estate page to see current listings and get a sense of what's hitting the market each week.

The Stacking Strategy: Show Me the Math

This is where it gets real. We're going to walk through an example so you can see exactly how the numbers shift.

You find a new townhome in Herriman listed at $430,000. It's three bedrooms, two and a half baths, finished two-car garage. The builder is motivated and offering a 2-1 buydown, which means your rate is two points lower in year one, one point lower in year two, and then adjusts to the standard rate in year three.

Without any assistance, you'd need to put down 3.5% if you're using an FHA loan. That's about $15,000. You'd also need roughly $8,000 for closing costs. So you're coming to the table with around $23,000 in cash.

Your loan amount would be about $415,000. At a 7% interest rate, your monthly principal and interest payment would be around $2,760. Add in property taxes, insurance, and HOA fees, and you're pushing $3,400 a month.

Now apply the S.B. 240 grant. You use the full $20,000 toward your down payment and closing costs. That drops your out-of-pocket cash to around $3,000. Your loan amount stays the same.

But here's the kicker. You ask the builder to pay for a permanent rate buydown in addition to the 2-1 temporary buydown they're already offering. Builders can do this. It usually costs them $8,000 to $12,000 depending on the rate drop. Since they're sitting on inventory, many will say yes.

You negotiate a permanent buydown to 5.5%. Your monthly principal and interest payment drops to around $2,350. That's over $400 a month in savings compared to the 7% scenario.

Over the course of a year, that's nearly $5,000 back in your pocket. Over five years, it's $25,000.

And remember, if you stay in the home for five years, that $20,000 grant is forgiven. You never pay it back.

This is not a hypothetical. We've helped buyers in Herriman close deals using this exact structure in the past six months.

Why You Should Never Walk Into a Model Home Alone

Here's the part that trips people up. You drive past a new townhome development in Herriman. There's a big sign that says "Model Homes Open Daily." You walk in. A friendly agent greets you, offers you bottled water, and walks you through a beautifully staged home with soft music playing.

You think, "This person is so helpful. They're answering all my questions."

What you don't realize is that agent works for the builder. Their job is to sell that home for the highest price with the fewest concessions. They are not your advocate. They are the opposing team.

If you sign in at the model home without bringing your own agent, you've just lost your leverage. The builder now knows you're unrepresented. They have no obligation to negotiate on your behalf. And in many cases, they won't even allow you to bring in your own agent after that first visit.

This matters especially when you're trying to stack the S.B. 240 grant with builder concessions. You need someone who knows how to push for a rate buydown, who understands how to structure the deal so the builder pays for the buydown while you use the state funds for your down payment, and who will insist on a third-party inspection even though it's new construction.

New does not mean perfect. We've seen brand-new Herriman townhomes with improper grading, missing insulation, and HVAC systems installed incorrectly. A third-party inspector catches that stuff before you close. The model home agent will tell you an inspection isn't necessary. They're wrong.

Our real estate FAQ page covers more about what to expect when working with buyer representation versus going solo.

How Salisbury Real Estate Handles Herriman New Builds

We've closed a lot of new construction deals in Herriman over the past two years. Enough to know which builders actually negotiate and which ones play hardball. Enough to know how to structure the S.B. 240 grant so it doesn't disqualify you from other programs. Enough to know when a builder's "final offer" is really final and when there's still room to move.

Cory handles the builder negotiations and rate buydown structuring. He's a licensed Realtor with Equity Real Estate, and he's been working the Wasatch Front long enough to know which concessions are standard and which ones you have to fight for.

Jenni, our Office Manager, keeps the timeline airtight. New construction closings involve a lot of moving parts. Builder deadlines. Lender conditions. HOA docs that need to be reviewed. Grant paperwork that has to be submitted within a specific window. She makes sure nothing falls through the cracks.

We also make sure you get a third-party inspection even when the builder pushes back. And we coordinate the final walkthrough so you're not discovering issues after you've already signed.

This is how we work every deal in Herriman. No shortcuts. No assuming the builder has your back. Because they don't.

What This Looks Like in Real Life

You're not going to walk into a model home and hand them a printout of this article. But you are going to walk in with a clear strategy.

You know you qualify for the S.B. 240 grant. You've completed the homebuyer education course. You've talked to a lender who understands how to layer the grant with a builder-paid buydown.

You tour the townhome. You like it. You ask the builder's agent what concessions are available. They offer a 2-1 buydown. You counter and ask for a permanent buydown to 5.5% in addition to covering $5,000 in closing costs.

They say no. You walk. Two days later, they call back and say yes.

That's how it works when you have leverage. When you know the builder is sitting on inventory. When you're not emotionally attached to one specific unit.

You close 30 days later. You move into a brand-new townhome in Herriman with mountain views, a two-car garage, and a monthly payment that's $400 less than you thought possible.

And five years from now, that $20,000 grant is forgiven. You'll have tens of thousands in equity. And you'll have avoided the mistake that most first-time buyers make, which is waiting for perfect conditions that never come.

Ready to Make This Happen in Herriman?

If you're tired of watching Herriman's new townhomes go up while your rent keeps climbing, this is your window. Builders are motivated. The state grant is funded. Rates are still high enough that most buyers are sitting on the sidelines.

That's your advantage.

We'll walk you through the qualification process, show you which developments have S.B. 240-eligible inventory, and negotiate the builder concessions that actually move the needle on your monthly payment. Head over to salisburyre.com or give us a call. We'll start with a conversation about what you qualify for and whether this strategy makes sense for your situation.

No pressure. No sales pitch. Just honest answers from people who've done this dozens of times in Herriman specifically.

Cory Salisbury | Realtor® - Equity Real Estate