Down Payment Assistance
Utah Housing Corporation (UHC) loans allow an eligible borrower, to borrow all or a portion of their down payment and closing costs. Borrowers are able to purchase a home with FHA or VA financing with little or no cash investment through an approved Utah Housing Participating Lender.
Down Payment Requirement:
- A FHA loan requires a 3.5% down payment (i.e. $5,250 is the minimum required down payment for a purchase price and appraised value of $150,000)
- Veterans with full VA eligibility may be able to finance 100% of the purchase price. Eligibility for the VA Home Loan Program
- Closing Costs charged by a lender varies from Lender to Lender and can range from 3% - 6% of the Loan Amount (i.e. Closing Costs for a loan amount of $150,000 can range from $4,500 - $9,000).
- It is important to obtain closing cost quotes from several UHC approved Participating Lenders
A UHC first mortgage loan is a 30-year fixed rate loan. Interest rates can be found on the UHC web site. Only Utah Housing approved Participating Lenders can offer the following loan programs and interest rates:
- FirstHome Loan has the lowest UHC interest rate. This loan is for first time homebuyers with a minimum credit score of 660.
- HomeAgain Loan has an interest rate higher than FirstHome, the loan is for borrowers with a minimum credit score of 660, first time homebuyers and homebuyers who have previously owned a home. The income and sales price limits are higher a than FirstHome loan.
- Score Loan has an interest rate higher than HomeAgain loan, the loan is for borrowers with a minimum credit score of 620, first time homebuyers and homebuyers who have previously owned a home.
Down Payment Assistance Second Mortgage:
- An eligible borrower can obtain a second mortgage for up to:
- 6% of the FirstHome Loan, HomeAgain Loan or
- 4% of a Score Loan
- The second mortgage is a 30-year fixed rate loan with an interest rate that is 2% higher than the first mortgage interest rate.
- Both the first mortgage and the second mortgage loan are serviced by Utah Housing Corporation. Borrowers will make both mortgage payments to Utah Housing Corporation in West Valley City, Utah.