If you’d like to buy a Utah home but are concerned about paying for the down payment, you aren’t alone. Many people are in the same situation – particularly after all the chaos of 2020 ate into a lot of people’s savings. Fortunately, there are still ways of getting assistance with a down payment – such as first-time homebuyer grants in Utah, or loans with friendly repayment terms.
There are numerous programs which can provide first-time home buyer down payment assistance. They all have different rules, terms, and conditions, but one of these could be the perfect starting point for you to find the help you need!
Five Sources of First-Time Home Buyer Grants or Loans in Utah
1. The Federal Housing Administration (FHA)
The FHA is going to be one of your best potential sources of funding, as they give out low-interest loans specifically to help with down payments. They’re particularly good for those with poor credit, as you’ll get much more favorable repayment terms than you would from a private lender.
2. Veteran’s Administration (VA)
Are you an active service member, 6+ year member of the National Guard or Reserve, or a veteran? If so, you should contact the VA to inquire into their home assistance loans. They could provide funds potentially covering the full cost of your down payment, making homeownership easy!
3. US Dept of Agriculture (USDA)
Would you consider buying a home in the countryside, or a small piece of farmland? If so, the USDA has programs in place to help cover the down payment. However, there are income restrictions – your income cannot be more than 115% of the income median for the area to qualify for these loans.
4. Fannie Mae Home Renovation Loans
It can be difficult to find funding for a ‘fixer-upper’ home, particularly one which currently isn’t up to code and must be renovated to be livable. However, Fannie Mae offers loans specifically for these situations that cover the cost of the home/property and include extra funding up-front to pay for renovations.
We’re a non-profit organization specifically founded to provide first time home buyer grants in Utah! We provide matching funds that can potentially double the amount of money you have available to make a down payment. Plus, unlike most other funding sources, we offer grants, not loans.
To learn more about our program and how to qualify, just contact us!