First-time home buyer programs in Utah: assistance, loans and real costs
Before the program names: utah’s first-time buyer problem is price, not taxes: with a $520,000 median and low property taxes, Utah Housing’s 6% second mortgage is effectively a 36-year, two-loan financing plan for many Wasatch Front buyers.
| State housing agency | Utah Housing Corporation |
|---|---|
| Median home price (approx.) | $520,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $18,200 / $26,000 / $104,000 on the median |
| Property tax (effective) | about 0.55% — roughly $2,860 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | Utah has no real estate transfer tax and no mortgage tax; only recording fees apply. |
State programs for first-time buyers in Utah
Utah Housing Corporation offers FirstHome (first-time buyers), HomeAgain (repeat buyers), Score (lower credit scores) and NoMI (no mortgage insurance) first mortgages, each combinable with a Utah Housing second mortgage for down payment and closing costs; the state’s First-Time Homebuyer Assistance Program, when funded, provides up to $20,000 for new construction.
The down payment help, and how it must be repaid
Utah Housing’s second mortgage covers up to 6% of the first-mortgage amount (the allowed percentage depends on the program) repaid over 30 years at a rate two percentage points above the first mortgage; the state’s new-construction assistance program is a 0% deferred loan for qualifying buyers.
Every assistance dollar comes in one of four shapes — grant, forgivable, deferred or repayable — and the shape decides what it costs you over ten years. Get it in writing before you apply. See how down payment assistance programs work.
Is there a first-time buyer tax credit?
Utah does not currently operate a statewide Mortgage Credit Certificate program; ask a Utah Housing lender about other options.
Eligibility limits
Utah Housing uses statewide income limits by household size and purchase price limits; minimum credit scores range from 620 (Score) to 660 (NoMI), and homebuyer education is required for some programs.
Closing costs, transfer taxes and who pays them in Utah
Utah has no real estate transfer tax and no mortgage tax; only recording fees apply.
Utah closings use title and escrow companies; buyer closing costs of about 2% to 3% of the price cover escrow, lender’s title policy, lender fees and prepaids, and sellers customarily pay for the owner’s policy. For the line-by-line, see closing costs explained and seller concessions limits.
Worked example: buying the median home in Utah
The numbers below assume Utah’s approximate median price of $520,000 and a 6.5% rate chosen for illustration, not quoted. Property tax is estimated from the state’s effective rate of about 0.55% — $2,860 a year at this price — and will differ by county. Add homeowners insurance and, below 20% down, mortgage insurance.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $18,200 | $501,800 | $3,172 | $238 |
| Conventional, 5% down | $26,000 | $494,000 | $3,122 | $238 |
| Conventional, 20% down (no PMI) | $104,000 | $416,000 | $2,629 | $238 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Utah have down payment assistance for first-time buyers?
Utah Housing’s second mortgage covers up to 6% of the first-mortgage amount (the allowed percentage depends on the program) repaid over 30 years at a rate two percentage points above the first mortgage; the state’s new-construction assistance program is a 0% deferred loan for qualifying buyers. Program terms and amounts change with funding — confirm the current version with Utah Housing Corporation or an approved lender before you count on a figure.
Is there a first-time home buyer tax credit in Utah?
Utah does not currently operate a statewide Mortgage Credit Certificate program; ask a Utah Housing lender about other options. An MCC must be issued at closing — it cannot be added to an existing loan — so ask about it before you choose a lender.
What are typical closing costs when buying a house in Utah?
Utah closings use title and escrow companies; buyer closing costs of about 2% to 3% of the price cover escrow, lender’s title policy, lender fees and prepaids, and sellers customarily pay for the owner’s policy. Utah has no real estate transfer tax and no mortgage tax; only recording fees apply.
Before you apply
- Pre-approval vs pre-qualification: what sellers actually respect
- Closing costs explained: what is negotiable, what is not
- PMI for first-time buyers: what it costs and how to get rid of it
- Gift funds for a down payment: the rules, the letter, the paper trail
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