Great news for buying a new home in Utah. A first-time homebuyer program is set to begin July 1, 2023 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. Below are a few frequently asked questions related to Utah’s first-time homebuyer program to help you get started.
First-time Homebuyer Program Assistance FAQ
How to Qualify for S.B. 240?
Be a first-time homebuyer. Read definition of first-time homebuyer, here.
Live in Utah for at least (12) months. If you recently moved to Utah, applications are accepted as long as the closing on the purchase takes place at least (12) months after moving to Utah.
How do I apply for the program?
Once a first-time homebuyer has credit-qualified with a participating Utah Housing Lender, the lender can submit a Program Assistance reservation request.
What type of homes are eligible for S.B. 240?
New construction or newly constructed single-family, townhomes and condos or similar residential dwellings priced at or below $450,000.
Can I qualify for the program if I am already under contract on a new home?
Absolutely. As long as the first-time homebuyer applies for the program and closes on the qualifying purchase after July 1, 2023.
What are the terms of the program?
The program assistance is secured by a recorded Deed of Trust and requires a Subordinate Note. The loan has a 0% interest rate and therefore monthly payments are not required. However, when the recipient completes a sale or refinance of the residence, they are required to repay the amount of Program Assistance received or 50% of the home equity (whatever amount is less).
How many first-time homebuyers will S.B. 240 help?
The Utah Legislature appropriated $50 million towards S.B. 240, which will help approximately 2,400 first-time homebuyers.
I am a first-time homebuyer who recently moved to Utah. Is there length of residency requirements?
To qualify for the program, the homebuyer needs to be a resident of Utah for at least (12) months prior to the home purchase closing.
For additional questions and to review the entirety of the program reach out to Utah Housing Corporation.
Daybreak Homes Under $450,000
Here at Daybreak, you’ve got some choosing to do to find a home eligible for the first-time homebuyer program. We have oodles of new construction homes, from charming to magnificent and right size to king size.
Complete Guide for First-time Homebuyers in Utah
Being a first-time homebuyer in Utah can be a little overwhelming, afterall it is a big investment financially and emotionally. And since buying your first home is one of the biggest milestones of your adult life, you’re going to want to do it right. Here’s everything you need to know as a first-time home buyer in Utah. From financing to picking the right house- we’ll help you! Read the Complete Guide for First-time Home Buyers in Utah.
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