"I want to buy a home — I just don't have enough saved for a down payment."
It's one of the most common things we hear from Utah homebuyers. And the follow-up conversation almost always surprises them: there are programs specifically designed to help with exactly that problem. You may qualify for down payment assistance, and you may qualify right now.
This guide breaks down how down payment assistance works in Utah, which programs are available, and how IFL helps buyers access them.
Down payment assistance (DPA) is financial help — from state agencies, local governments, or approved nonprofits — that reduces the upfront cash you need to buy a home. It comes in a few forms:
Grants: Money that doesn't need to be repaid. True grants are less common but do exist through certain housing programs.
Forgivable loans: A second loan on your home that's forgiven — usually over time — as long as you meet certain conditions (typically staying in the home for a set number of years). If you sell or refinance before the forgiveness period ends, you may owe some or all of it back.
Repayable second mortgages: A second loan you do pay back, either when you sell, refinance, or over a set repayment term. This is the most common form of DPA in Utah. It's not free money — it's a loan that covers your down payment. But for buyers who have the income to qualify and can handle the combined payments, it's a powerful tool that makes buying possible now rather than years from now.
Understanding which type you're being offered matters. IFL walks every buyer through the specifics of any DPA program before you commit.
Utah Housing Corporation is the state's primary housing finance agency and the most widely used source of DPA for Utah buyers. UHC programs pair a first mortgage with down payment assistance through a second mortgage product.
FirstHome Loan: Designed for first-time homebuyers — defined as buyers who haven't owned a primary residence in the past three years. Comes with down payment assistance through UHC's second mortgage and requires the home to be a primary residence.
HomeAgain Loan: For buyers who don't qualify for FirstHome — either because they've owned before or their income is above the FirstHome threshold. Still offers access to UHC's down payment assistance structure.
Score Loan: Serves buyers with lower credit scores who need more flexibility than FirstHome or HomeAgain allows.
Down Payment Assistance Second Mortgage: UHC's DPA product is a second mortgage — attached to a UHC first mortgage — that covers a portion of the down payment and closing costs. Income limits, purchase price caps, and program terms apply and change annually. For current eligibility details, visit utahhousing.org.
As a mortgage broker, IFL originates UHC loans and can walk you through your eligibility directly.
For buyers purchasing in eligible rural and suburban areas of Utah, USDA loans offer zero down payment with no DPA required. Properties outside of major metro areas — some communities in Utah County, rural areas throughout the state — may qualify.
Zero-down means zero down: no down payment assistance needed on top because there's no down payment. USDA has income limits that vary by area and household size.
If you've served in the military, your VA loan benefit may be the most powerful down payment solution available — because there isn't one. Zero down payment, no private mortgage insurance, and competitive rates that hold up well against conventional alternatives.
Utah has a significant veteran population, and VA loans are one of IFL's strongest programs. If you're a veteran and you haven't explored your VA loan eligibility, that conversation should happen before anything else.
FHA loans require a minimum 3.5% down payment — but that down payment can come from an approved DPA source. UHC's programs are compatible with FHA loans, meaning qualifying buyers can combine an FHA first mortgage with UHC down payment assistance to significantly reduce what they need at closing.
This combination is one of the most common paths to homeownership for Utah first-time buyers who don't have VA eligibility and need help with the down payment.
Eligibility for DPA programs depends on several factors, and it's worth checking before you assume you don't qualify:
Income: Most DPA programs have income limits, but they're designed to serve a meaningful range of buyers — not just buyers at the lowest income levels. A household of four has different limits than a single buyer, and limits adjust for the local cost of housing. Many buyers earning solid incomes are surprised to find they still qualify.
Credit: Programs vary, but most DPA programs require a minimum credit score in the 620–640 range. UHC's Score program exists specifically for buyers with lower scores.
First-time buyer status: Some programs require it; others (like HomeAgain) don't. The three-year lookback rule is the most common definition — if you haven't owned in three years, you typically qualify as a first-time buyer again.
Purchase price and loan type: Programs typically have purchase price limits and are designed to work with FHA, VA, or conventional first mortgages.
The fastest way to find out if you qualify is to talk to IFL. We'll review your income, credit, and target price range and tell you exactly which programs are available to you.
Banks typically offer only the programs they're approved to originate — often one or two. As a mortgage broker, IFL works with multiple lenders and programs, which means we have access to a broader range of DPA options than a single bank can offer.
We also know how to stack programs. In some cases, a buyer can combine a UHC first mortgage with a DPA second mortgage and seller-paid closing costs to get into a home with minimal out-of-pocket cost. That's a combination that requires a lender who knows the programs — not someone running through a standard checklist.
The first step is a free consultation. We'll look at your income, credit, and the price range you're targeting and identify which down payment assistance programs you qualify for. Most pre-approvals come back within a business day.
You don't need a perfect down payment to buy a home in Utah. You need the right information and the right lender.
Loan programs and eligibility requirements are subject to change. Contact Integrity First Lending to discuss your specific situation.
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