This story is part of The Salt Lake Tribune’s ongoing commitment to identify solutions to Utah’s biggest challenges through the work of the Innovation Lab.
[Subscribe to our newsletter here]
Are you a Utahn trying to buy your first home but struggling to save up enough for a down payment?
A new assistance program launched on July 11 could help.
Up to $20,000 is available for qualified applicants who need help with a down payment or closing costs. The funds can also be used to buy down interest rates.
The Utah Housing Corporation is administering the 0% interest loan. Borrowers don’t need to pay it back until they sell or refinance their home.
Recipients can only use the funds to purchase a “newly constructed but not yet inhabited home” that doesn’t cost more than $450,000. They must also work with a lender participating in the program (a list of those lenders can be found here).
Last legislative session, Senate President Stuart Adams sponsored SB 240, the bill that created the First-time Homebuyers Assistance Program.
“I’m really happy to see that it’s a nonpartisan issue of simply trying to help individuals and families get equity,” Adams told The Tribune in February.
Housing advocates were also supportive of the measure. “We need it,” Tara Rollins, executive director of the Utah Housing Coalition, told The Tribune. Rollins advised that those interested in the program make sure that their “finances are stable.”
The Legislature allocated $50 million for the new program. The Utah Housing Corporation estimated those funds could provide assistance to roughly 2,400 families in the state.
To learn more about the program and how to apply go to the Utah Housing Corporation site here.