Loan to Own Down Payment and Closing Cost Assistance is a 0% interest loan with deferred payment for as much as $25,000 (for credit scores between 650 and 699) or as much as $40,000 (for credit scores 700 or more). Repayment is only required once the property is either sold or no longer the borrower’s primary residence. In the event that the property is sold or no longer owner-occupied before two years has passed, the borrower will have a $5,000 fine. Applicants must be able to put at least $1,000 from their own funds towards the home purchase.
Applicants must have a qualifying mortgage, fall within specified income and debt limits, must have been working at their current place of employment for at least six months, and must be first-time homebuyers (cannot have owned a house in the previous three years).
In addition, the applicant’s middle credit score has to be higher than 650, and they cannot have any unsatisfied collections or judgements. Applicants will need to undergo homeownership counseling from an approved course. The applicant’s cash assets at closing cannot be more than $15,000.
If married, both spouses have to be on the Loan to Own loan, even if both spouses are not on the first mortgage loan. Finally, all members in the household aged 18 or older have to have a background check done.
The property in Utah can be in any city except for Eagle Mountain, Alpine, Fairfield, or Provo.
As of 2020, the sales price of the property cannot be more than $358,340. The property can be a single-family house, a condo, a townhouse, or half of a twin home. The property cannot have tenants or renters either currently or for the past six months who have been or will be displaced or evicted in order for the purchase to proceed.
Required documents to apply include a finished and signed application form, the prior three years’ worth of Federal Income Tax returns, pay stubs for everyone in the household older than 18 for the previous three months, and documentation to show US citizenship and social security cards.
Other programs in Utah:
- UHC Down Payment Assistance
- CDCU Down Payment Assistance
- West Valley City Down Payment Assistance Grant
- BRAG First Time Homebuyer Assistance
- Welcome Home: Own in Logan
- Weber Housing Authority Homeownership Assistance Program
- Own in Odgen Program
- Davis First Time Home Buyer
- Clearfield First Time Home Buyer
- City of West Jordan Down Payment Assistance Program
- Provo Home Purchase Plus Program