Utah First-Time Homebuyer Programs in 2026: What's Available and How to Use It
Last reviewed November 10, 2026 by Justin Montoya · Utah Real Estate License #13587465-SA00 · NMLS #266932
The short answer: Utah Housing Corporation offers first-time buyers two down payment programs. The New Construction First-Time Homebuyer loan provides up to $20,000 at 0% interest with no monthly payments. Deferred Down Payment Assistance is a second mortgage of up to $27,500 or 3.5% of your first loan, whichever is less. Both are repaid later, not given as gifts, and each has its own rules.[1]
Buying your first home in Utah takes more cash up front than many buyers expect. Between the down payment, closing costs, and moving expenses, the total can feel out of reach. Utah Housing Corporation (UHC) offers two programs that can ease that load. This guide explains what each one does, who may qualify, and what happens when you sell or refinance.
Two programs, two different structures
UHC's programs work alongside a Utah Housing first mortgage through a participating lender. They are not grants, so the money has to be repaid. The table below compares the two at a glance.
| Feature | New Construction FTHB Assistance | Deferred Down Payment Assistance |
|---|---|---|
| Amount | Up to $20,000 | Lesser of $27,500 or 3.5% of the first loan |
| Type | 0% interest loan | 30-year fixed second mortgage |
| Interest | 0% | 3.5% simple interest, deferred |
| Monthly payments | None | None |
| Repayment | On sale or refinance: lesser of assistance or 50% of equity | At maturity, sale, or refinance |
| Home type | Newly built homes only | Not confirmed; see your lender |
New Construction First-Time Homebuyer assistance
This program is designed to help buyers purchase newly built homes. UHC says it wants to encourage builders to produce new affordable housing, which is why the home must be new and not yet lived in.[1]
Who may qualify
- Purchase price: up to $450,000. Limits may vary by location or home type.
- First-time status: neither you nor your spouse can have owned a principal residence in the three years before your purchase date. Some single parents and displaced homemakers may qualify under exceptions.
- Residency: you must have lived in Utah for at least 12 months before closing.
- Occupancy: you must move into the home within 60 days of purchase.
- Income: limits follow the Utah Housing first-mortgage program you use.
- Lender: you must use a UHC participating lender and a UHC first mortgage.
How the money is used and repaid
You can use the assistance for a down payment, closing costs, a permanent interest rate buydown, or a mix of these. Because it is a 0% loan with no payments, you pay nothing monthly on it. When you sell or refinance, you repay the lesser of the amount you received or half of your home equity.[1] The loan is secured by a recorded deed of trust.
This assistance cannot be combined with UHC's Veterans grant or Law Enforcement and Correctional Officer grant.[1] It can be combined with UHC's down payment assistance second mortgage.
Deferred Down Payment Assistance
The Deferred Down Payment Assistance program is a second mortgage that lets you pay less at closing without making monthly payments. Utah Housing announced it for loans issued on or after July 1, 2025.[2]
The key numbers
- Amount: the lesser of $27,500 or 3.5% of your first loan amount.
- Rate: 3.5% simple interest, which is deferred, so it does not accrue into monthly payments.
- Term: 30-year fixed.
- Repayment: principal and deferred interest come due at maturity, when you sell, or when you refinance.
Your lender can confirm whether you qualify and what the current terms are for your loan.
Note on figures: the cap is based on the lesser of two amounts, so on a smaller loan the 3.5% figure may be lower than $27,500. If you use an FHA first mortgage, UHC states that the loan may include FHA upfront mortgage insurance premium.[2]
Other UHC programs
UHC also lists grant programs for eligible veterans and for law enforcement and correctional officers. These programs have their own rules and funding, and they can't be combined with the New Construction loan. Ask your lender whether you qualify for either one and whether funds are still available.
How to get started
- Talk to a participating lender. Your lender runs the credit qualification and submits the reservation request. You don't need a specific property yet.
- Receive your reservation. UHC approves the request and issues a 90-day reservation.
- Find your home and extend if needed. The first extension (120 days) requires a signed purchase contract and confirmation from your lender that you still qualify. Newly built homes may require additional extensions tied to construction progress.
- Close. Your lender and title company send the wire request to UHC three days before closing.
If a reservation is canceled during the first 90 days, you can reapply only with a signed contract.[3]
Frequently asked questions
How much can Utah Housing help with a new home?
Up to $20,000 for a down payment, closing costs, or a rate buydown. It is a 0% loan with no monthly payments.
What is Deferred Down Payment Assistance?
A 30-year fixed second mortgage of the lesser of $27,500 or 3.5% of your first loan amount, at 3.5% simple interest, with no monthly payments.
Do I have to repay UHC assistance?
For the New Construction loan, yes. When you sell or refinance, you repay the lesser of the assistance or half your equity.
What is the purchase price limit?
The New Construction assistance applies to homes up to $450,000. Limits may vary by location or home type.
Where to go next
- Explore down payment assistance options with WEG
- Estimate what you can afford
- Read the full Utah first-time buyer guide
- Get pre-approved
Find out which program fits your situation
Every buyer's numbers are different. A short call can show whether you qualify for these programs, how the repayment would work for your plans, and what your monthly payment could look like.
Book a Strategy Call Call (385) 264-6766 Email JustinReferences
- Utah Housing Corporation, New Construction First-Time Homebuyer Program Assistance FAQ (updated 7/16/2026)
- Utah Housing Corporation, Deferred Down Payment Assistance announcement (June 2025)
- Utah Housing Corporation, First-Time Homebuyer Assistance Program overview and reservation process (revised 6/26/2023)