Best Mortgage Programs for Utah First-Time Home Buyers in 2025

Buying your first home in Utah can be a daunting process—especially with rising home prices and tight inventory. Fortunately, in 2025 there are several mortgage and assistance programs available to first-time homebuyers in Utah that can help make ownership more achievable. Below, we explain the leading options, eligibility tips, and what to watch out for.

What “First-Time Homebuyer” Means in Utah

Before jumping into programs, it’s important to clarify what “first-time homebuyer” (FTHB) means in Utah. For many state and local programs, you’re considered a first-time buyer if you haven’t owned a home in the past three years. Some programs make exceptions for veterans, single parents, or displaced homeowners, so always read the fine print for each program.

Top Mortgage and Assistance Programs for Utah First-Time Buyers in 2025

1. Utah Housing Corporation – FirstHome Loan + Down Payment Assistance (DPA)

This is often the go-to program for first-time buyers in Utah. You can pair a conventional, FHA, or VA mortgage with a down payment assistance (DPA) second loan—typically a 30-year fixed—of up to 6% of the first mortgage amount to cover your down payment and/or closing costs. The DPA usually comes at 1% interest above your first mortgage rate for the traditional DPA option. For the deferred DPA option, available as of July 2025, buyers can receive up to 3.5% (maximum $27,500) of the first mortgage amount, with simple interest deferred until maturity, sale, or refinance. There’s also a new construction incentive under Utah’s legislative First-Time Homebuyers Assistance Program offering up to $20,000 toward down payment, closing costs, or interest rate buydowns for homes priced up to $450,000. This incentive is structured as a 0% interest, no-payment loan that is repaid only upon sale or refinance.

Pros: Low rates, ability to combine with down payment help, favorable structure.
Cons: Income and purchase price limits apply, minimum credit score around 660, and the second mortgage must be repaid if you refinance or sell early.

2. Utah Housing FHA, VA, and Conventional Options

If you don’t qualify for the FirstHome program or prefer a different route, Utah Housing offers other loan types:

• FHA and VA Loans: Great for borrowers with limited credit or smaller savings. These can still be paired with Utah Housing’s DPA.

• Freddie Mac HFA Advantage Loan: A conventional mortgage for first-time or repeat buyers with lower mortgage insurance premiums and a minimum credit score near 680.

• HomeAgain and Score Loans: Older Utah Housing options still available through select lenders for moderate-income buyers or those with limited credit.

3. Local and County Down Payment Assistance Programs

In addition to state-level offerings, many Utah counties and cities provide their own homeownership assistance options:

• Davis County Homeownership Assistance: Up to $50,000 for income-qualified buyers, usable for principal reduction, down payment, or rate buydowns. It carries 1% interest but no monthly payments, and repayment occurs at sale or refinance.

• Own in Ogden: Historically offers up to $10,000 for regular buyers and more for teachers or first responders. While temporarily paused, it’s expected to reopen in 2026.

• Provo Down Payment Assistance: Zero-interest deferred loans for down payment and closing costs with partial forgiveness after five to fifteen years.

• Layton’s “At Home in Layton” Program: Up to $10,000 in forgivable assistance for buyers who remain in their homes at least five years.

• Community Development Corporation of Utah (CDCU): Offers deferred loans for down payment assistance across various parts of the state.

Many local programs can be stacked with Utah Housing assistance, which can significantly reduce your out-of-pocket costs. Davis County’s program, for instance, explicitly allows pairing with Utah Housing’s DPA.

4. Federal and Conventional Mortgage Options

Beyond Utah-specific programs, first-time buyers can take advantage of standard federal loan products:

• FHA Loans: Require only 3.5% down for credit scores above 580 and offer flexible qualification standards, though they include mortgage insurance.

• VA Loans: For eligible veterans and service members, VA loans require no down payment and have no mortgage insurance.

• USDA Rural Development Loans: Ideal for qualifying rural areas in Utah, these loans offer 100% financing and low rates.

• Conventional 97, HomeReady, and Home Possible Loans: Require as little as 3% down and often have reduced mortgage insurance costs for well-qualified borrowers.

Tips to Maximize Your Buying Power in 2025

1. Work with a Utah Housing–approved lender. To use Utah Housing programs, your lender must be on their approved list. They’ll guide you through eligibility and application steps.

2. Know the limits. Each program includes income, credit, and home price caps. For example, the new construction subsidy applies to homes under $450,000 and typically requires a 660+ credit score.

3. Combine programs when possible. You may be able to pair a city grant or county assistance with Utah Housing’s DPA for maximum benefit.

4. Plan for repayment of deferred loans. Many down payment programs record a lien on your property, which must be repaid when you sell or refinance.

5. Check availability early. Funding for many assistance programs is limited and often distributed on a first-come, first-served basis. Apply early to secure your slot.

6. Compare FHA vs. conventional. FHA loans work well for lower credit scores, while conventional loans often save more long-term if you qualify.

Final Thoughts

In 2025, Utah continues to offer strong opportunities for first-time homebuyers through state, local, and federal mortgage programs. The Utah Housing FirstHome and DPA combination remains the most popular choice, but local options such as Davis County’s $50,000 program or Provo’s down payment loan can make ownership even more accessible. Pairing these resources with traditional FHA, VA, or conventional loan products allows buyers to minimize cash outlay and start building equity sooner.

If you’re considering buying your first home in Utah this year, explore multiple programs and compare eligibility requirements. Working with a knowledgeable lender familiar with Utah Housing and city assistance programs can make all the difference in turning your homeownership goals into reality.