Struggling to come up with a down payment for a new home? You may have decent credit and be able to afford a mortgage payment, but the down payment requirement is a huge barrier to homeownership for a lot of low to median income families, especially since the pandemic.
The good news is that there are many state and federal down payment assistance programs available in Utah for low to moderate income families who would otherwise qualify for a mortgage loan if their down payment requirement was met.
But, you have to know where to look and really dig for the information on them…
And the best news is that we’ve done the digging for you!
5 Down Payment Assistance Programs in Utah
Here are 5 options for down payment assistance in Utah that may be able to help make your homeownership dreams a reality:
1. Self-Help Homes
Self-help homes helps those who can put in sweat equity or labor into housing build a community with other like-minded future neighbors. Because of the work requirement to build the community development, the homes are much more affordable for home buyers.
Qualifications:
- Your income must be at or below 80% of the area median income.
- You need to have a credit score of 640 or higher.
- Your debt to income ratio cannot exceed 41% including a potential house payment.
- You cannot currently have ownership in a house or property.
- You must be willing to work at least 35 hours per week on all the houses in your group until finished (an average of 8 – 10 months should be expected). You can however, elect volunteers to help you with the hours.
- You cannot have a payment shock exceeding 100%. For example, if your current rent is $600 per month and your potential mortgage payment is $1200 per month, your payment shock would exceed the limit.
For more information, visit https://www.selfhelphomes.org/
2. Community Development Corporation of Utah
Down Payment Assistance (DPA) is designed to assist low-to-moderate income (LMI) households in need of funds to cover the required down payment and/or closing costs for the purchase of a home. DPA is awarded as a deferred loan with no payments and no interest that is forgivable after a period of time. DPA is available for Salt Lake City, Salt Lake County (funds are very limited in specific cities) and Taylorsville residents.
To find out the specific areas offering down payment assistance and eligibility requirements, go to https://cdcutah.org/housing-services/downpayment-assistance.
3. FairCredit.Org
By signing up for and attending 8 hours of online financial management classes, faircredit.org can help you save for your down payment!
They will match your savings 2 to 1, so for every dollar saved, they will give $2 towards your down payment savings account up to $1000.
If you are able to save the whole $1000, they will match it with $2000. This would make your down payment savings a total of $3000, which will get you that much closer to your goal.
For more details on how to sign up for online classes, go to: https://faircredit.org/classes-events/
4. Chenoa Fund
From their website:
“Chenoa Fund™ is a national down payment assistance program provided by CBC Mortgage Agency (CBCMA), a federally chartered governmental entity.
CBC Mortgage Agency specializes in providing financing for loans under the guidelines of FHA and Fannie Mae. CBC Mortgage Agency provides the following through the Chenoa Fund™ program:
- Down payment assistance in the form of second mortgages
- Down payment assistance for FNMA conventional loans
- Down payment assistance for FHA loans”
The Chenoa Fund has many resources available for low to moderate income families with some options that do not need to be repaid.
To apply, simply call or email them and ask for a list a mortgage companies that work with them in your area.
Phone: 866-563-3507
Email: info@chenoafund.org
For more information, go to: https://chenoafund.org/homebuyer/homebuyer-resources/, and view the marketing material PDFs.
5. Utah Housing Corp
Utah Housing Corp offers down payment assistance programs for qualified buyers living in Utah. You must work with an approved lender in the state of Utah.
Depending on your needs, you also may be able to borrow your entire minimum required down payment plus all or a portion of your closing costs on a Utah Housing Corp 30 year fixed rate second mortgage.
To get down payment assistance from Utah Housing Corp, you must first qualify for a Utah Housing Corp first mortgage home loan.
Synopsis: Struggling with a Down Payment? 5 Down Payment Assistance Programs in Utah
Whatever your needs, Spectrum Realty & Property Management is here to help! Check into these down payment assistance options and see if any are a good fit for you and your family.
And if not, we have great rental options, homes for sale in Utah listings, and property management services! With affordable home buying/selling, rentals, and property management options, give us a call or email to let us know how we can help you today!
Phone: 801.655.3700
Email: spectrumpm@gmail.com