First-time homebuyers can get $20k for down payment on brand new homes – and you only need to meet four criteria
Help is now available for first-time homebuyers through a state-funded program that provides up to $20,000 in assistance. Thousands of Americans have already benefitted from this initiative, which has simple eligibility criteria for prospective homeowners.
First-Time Homebuyers Assistance Program
The First-Time Homebuyers Assistance Program, launched in Utah during the summer of 2023, is designed to assist residents in purchasing their first home. The program primarily targets families with low to moderate incomes, offering a zero-interest loan of up to $20,000 that can be used for various expenses related to buying a home, including down payments, closing costs, or reducing loan interest.
Utah lawmakers established this program in response to a significant housing shortage and rising home prices, approving $50 million in funding for 2023. Since then, the program has disbursed $26 million, providing assistance to over 1,300 families.
“A lot of the homebuyers we are helping would not be able to purchase a home were it not for this program,” said David Damschen, CEO of the Utah Housing Corporation, the agency overseeing the initiative, according to local CBS affiliate KUTV.
Guidelines and Restrictions
To encourage the construction of more affordable housing, beneficiaries must use the $20,000 exclusively toward newly built homes costing $450,000 or less. Most units purchased through the program have been condos or townhomes in Utah County and Tooele County.
Damschen highlighted the changing landscape of homeownership aspirations: “A lot of people start out buying a home like their parents or grandparents did: two-bedroom, two-bath on a quarter acre with a backyard. We are in an environment where that’s probably not realistic for a lot of first-time homebuyers.”
He also noted that many individuals qualifying for this program may be eligible for additional state programs, such as down payment assistance. “People are so discouraged and assume they can’t achieve home ownership. In fact, they can,” Damschen added.
Remaining Funding and Eligibility Criteria
Nearly half of the funding for the First-Time Homebuyers Assistance Program is still available, with $24 million remaining. Approximately 1,000 more families could benefit from this financial assistance.
To qualify, prospective homebuyers must meet the following criteria:
- Residency: Applicants must have lived in Utah for at least 12 months before closing.
- First-Time Homebuyer Status: Applicants and their spouses must not have owned a principal residence during the three years leading up to the purchase. Exceptions are made for displaced homemakers or single parents who previously owned a home with their spouse.
- Income Limits: Applicants’ incomes must fall within the limits set by the Utah Housing loan program associated with their qualifying mortgage loan.
- Credit Qualification: Applicants must be credit-qualified for a mortgage loan purchased and serviced by the Utah Housing Corporation.
Affordable Opportunities
In related news, potential homeowners can find incredible deals, such as a three-bedroom home with a large yard starting at just $1. Additionally, a six-bedroom home with an extra lot is on the market for only $7,500. With opportunities like these and state-funded assistance, the path to homeownership is more achievable than ever for Utah residents.
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