Everything a first-time homebuyer needs to know in 2025—how to qualify for assistance, how much to save, and how Daybreak can make your path easier.
Quick Answer
If you’re buying your first home in Utah in 2025, you may access up to $20,000 in assistance through S.B. 240—plus benefits like Roth IRA use and low down‑payment options, especially in Daybreak’s new‑home community.
- Utah’s S.B. 240 provides up to $20K toward purchasing a newly built home ≤$450,000—no monthly payment; typically repaid at refinance or sale.
- First‑time buyers’ typical down payment is around 9% nationally (NAR 2024), and Roth IRAs can help with up to $10K toward a first home.
- Daybreak offers eligible inventory, affordability tools, builder incentives, and a walkable, amenity‑rich setting.
At a Glance
| Topic | Quick Answer |
|---|---|
| Assistance (S.B. 240) | Up to $20,000 for down payment, closing costs, or interest buydown on new homes ≤$450K |
| Typical Down Payment | ~9% for first‑time buyers (national median, 2024) |
| “First‑time buyer” definition | No ownership in a principal residence in the last 3 years (plus single‑parent/displaced‑homemaker exceptions) |
| Affordability rule of thumb | 28/36 DTI guideline (≤28% housing; ≤36% total debt) |
1. What assistance programs are available in Utah in 2025?
Short answer: Utah’s S.B. 240 First‑time Homebuyer Assistance Program can provide up to $20,000 on qualifying newly built homes priced at or below $450,000, administered by Utah Housing Corporation.
- Use funds for a down payment, closing costs, or a permanent interest‑rate buydown.
- 0% interest, typically no monthly payments; repaid when you sell or refinance (see Utah Housing details).
- Approximately 2,400 buyers targeted with the initial funding round.
Utah S.B. 240 overview | Utah Housing program FAQ (PDF)
2. How much do I need to save to buy?
Short answer: Many first‑time buyers put around 9% down nationally; Utah buyers can stack S.B. 240 with low‑down‑payment loans. Use the 28/36 rule to estimate comfortable payments.
- Down payment: National median for first‑timers is ~9% (NAR, 2024). Down payments as low as 3–5% may be possible with certain loans.
- 28/36 rule: Aim for ≤28% of gross income on housing expenses and ≤36% on total debts.
- Roth IRA: Up to $10,000 lifetime can be used toward a first‑home purchase (penalty‑free under IRS rules; taxes may apply to earnings).
How much home can I afford? | Saving for your down payment
3. How do I know if I qualify as a first‑time buyer?
Short answer: You’re typically considered first‑time if you (and your spouse) haven’t owned a principal residence in the last 3 years. Single‑parent and displaced‑homemaker exceptions may also qualify.
- No ownership in a principal residence for the past 3 years (applies to both spouses if married).
- Single‑parent and displaced‑homemaker exceptions may count as first‑time buyers.
- Check Utah Housing/UHC program specifics for income, purchase, and property criteria.
4. Why choose Daybreak as a first home location?
Short answer: Daybreak offers new homes (including options under $450K that can qualify for S.B. 240), move‑in‑ready inventory, builder incentives, and an amenity‑rich, walkable lifestyle.
- See move‑in‑ready homes and builder incentives.
- Walkable community with trails, parks, and Oquirrh Lake access—great for long‑term livability.
- Plan a visit: Find a Home/Tour a Model | Moving to Utah checklist
5. Read Up On It
The more you understand what purchasing a home means for you, the more likely you are to make good choices.
Surprise expenses won’t do you any good, so if you know what to expect; you can better manage your finances. Understanding how your local HOA operates and knowing the different housing regulations will also help you avoid unnecessary penalties and costs.
There are free and easily accessible homebuyer seminars you can be a part of as well. You can find homeownership programs and products on the Housing Education Coalition of Utah Directory.
First Time Home Buyer in Utah FAQ
How much do first-time home buyers have to put down in Utah?
The down payment required for first-time home buyers in Utah can vary based on the type of loan they get. For conventional loans, a down payment of 20% is typically standard, but some loans may allow for down payments as low as 3-5%. For FHA loans, the minimum down payment can be as low as 3.5%. USDA and VA loans, on the other hand, might not require any down payment at all. Keep in mind that these rates can vary, and it’s always best to check with lenders or housing agencies for the most current information.
What is the 20k grant for first-time buyers in Utah?
Utah First Homebuyer Program S.B. 240: As of July 1, 2025, this program is offering up to $20,000 in assistance. Created by the Utah Legislature, S.B. 240 allocates funds to first-time homebuyers that can be used for down payment assistance, closing costs, and/or a permanent interest rate buydown on a qualifying loan. The program, administered by Utah Housing Corporation, only applies to new construction homes that are priced at or below $450,000. Read more by clicking on the link above.
How much do most first-time home buyers put down?
According to the National Association of Realtors, the average down payment for first-time homebuyers in the U.S. tends to be around 6% of the purchase price. However, this can vary based on the location, type of loan, and the buyer’s financial situation.
How to buy a house in Utah with bad credit?
According to Mortgage Utah, if you have bad credit and want to buy a house in Utah, there are a few steps you can take:
- Improve your credit: This might include paying your bills on time, paying off debt, and not opening new credit lines.
- Save for a larger down payment: This can often improve your chances of getting approved for a mortgage.
- Consider an FHA loan: These loans are designed to help people with lower credit scores buy homes. They often require lower down payments and have less stringent credit requirements.
- Explore local and state programs: Utah has various homebuyer assistance programs that might be able to help.
- Work with a credit counselor: A credit counselor can provide guidance on improving your credit score and navigating the home-buying process.
What’s the lowest credit score to buy a house?
The minimum credit score needed to buy a house can vary greatly depending on the type of loan you’re applying for. For conventional loans, lenders typically look for a credit score of at least 620. However, you can qualify for an FHA loan with a credit score as low as 500 if you have a 10% down payment, or 580 with a smaller down payment.
What credit score is too low to buy a house?
According to The Mortgage Reports, a credit score below 500 is considered too low to qualify for most types of mortgages, including FHA loans. However, some lenders may have more flexible requirements, especially if you can make a larger down payment. Keep in mind that even if you qualify for a mortgage with a low credit score, you’ll likely face higher interest rates and more expensive mortgage insurance.
Make the Call
If you made it this far, then you have an idea of what you’re looking for and you’re ready to pull the trigger on becoming a first-time homebuyer. Just remember that the home-buying process may produce a few hurdles, but in the long run, it will be worth it.
Luckily, Daybreak has a variety of home builders who are trained to escort you on this journey. They’ll help you navigate the complexities of the transaction and make your move nice and smooth.
Helpful Links
- Utah first‑time homebuyer program (S.B. 240)
- How much home can I afford?
- Move‑in‑ready homes
- Find a Home / Tour a model
- Moving to Utah checklist
Sources
Governor’s Office of Planning & Budget summary
Utah Housing Corporation — Program FAQ (PDF)
