First-Time Home Buyer Programs in Utah 2026
Utah’s first-time buyer loans are run by Utah Housing Corporation (UHC) and made by its participating lenders. The loan reserved for first-time buyers is FirstHome, which needs a 660 score on FHA or VA. Any UHC first mortgage can carry a DPA Second of up to 6% of the loan, capped at $27,500. First-time buyers of a never-occupied new home can add up to $20,000 more from the state’s First-time Homebuyer Assistance Program.
Three UHC first mortgages, and only one is first-time-only
UHC’s matrices and fact sheets, revised in July through September 2026, describe three purchase loans. Utah Housing “doesn’t make our own loans, our Approved Participating Lenders do”, so you apply for any of them through a lender.
| Loan | Who can use it | Minimum score | Price limit |
|---|---|---|---|
| FirstHome (FHA/VA or conventional) | First-time buyers only | 660 government; 680 conventional | By county, see below |
| FHA/VA Mortgage | First-time buyers and “homebuyers who have previously owned a home” | 620 (rate adjustment below 660) | “There is no Purchase Price Limit” |
| Freddie Mac HFA Advantage | First-time and repeat buyers | 680 single-family; 700 for 2–4 units | None; conforming loan limit applies |
If you have seen “HomeAgain” or “Score” in older guides, those names are gone. UHC’s FHA/VA fact sheet says the FHA/VA Mortgage “replaces the HomeAgain and Score Loan programs.”
FirstHome is the only UHC loan financed with mortgage revenue bonds. That is why it alone can trigger a potential federal recapture tax on the gain if you sell within the first nine years. UHC says it “may reimburse” borrowers who pay that tax.
What counts as first-time for FirstHome
The FirstHome matrix says “All occupant borrowers must be first-time homebuyers (borrowers who have not had an ownership interest in a Principal Residence three years before the date of execution of the loan).” It lists “Exceptions for single parents and Veteran borrowers.” A single parent who owned a home with a former spouse may still count as first-time. The application also has to show a three-year residency history.
If you owned a home recently, skip FirstHome. The FHA/VA Mortgage and HFA Advantage take repeat buyers, with the same DPA Second on top.
2026 FirstHome income and purchase-price limits
UHC’s limits page sets FirstHome caps by county group. FirstHome counts total annual household income, verified for everyone who signs the note or takes title. Selected rows:
| County group | Income, 1–2 people | Income, 3+ | Max acquisition cost |
|---|---|---|---|
| Salt Lake | $126,100 | $145,000 | $666,600 |
| Juab, Utah | $143,000 | $166,800 | $769,100 |
| Davis, Morgan, Summit, Wasatch, Weber | $141,400 | $164,600 | $778,500 |
| Washington | $118,000 | $135,700 | $635,300 |
The FHA/VA Mortgage and HFA Advantage use a single qualifying-income limit of $165,200 in all counties (single-unit; two-unit FHA/VA adds qualifying rental income). It is tested against qualifying income in the loan file (UHC multiplies the monthly income on the underwriting findings by 12), not household income. For the remaining county groups, see UHC’s income and purchase price limits page.
The DPA Second: two versions, both loans
UHC’s DPA fact sheet (revision 08/24/2026) offers the second mortgage “to qualified first-time homebuyers and homebuyers who have previously owned a home”. It closes together with any UHC first mortgage.
- Traditional: up to 6% of the first mortgage amount, “Not to exceed $27,500”. It is a “30-year fixed rate, fully amortizing loan” with a monthly payment. The rate is 1% above the first mortgage, capped at 8%, and never below the first-mortgage rate.
- Deferred: up to 3.5% of the first mortgage amount, also capped at $27,500. It carries “an interest rate of 3.5%, deferred simple interest” and no monthly payment. “The outstanding principal and deferred interest are due upon maturity, sale, or refinance of the property.”
Neither version is forgiven. The deferred one grows with interest until you sell, refinance or reach year 30. On a conventional FirstHome, UHC notes you can use DPA funds “to reduce the LTV to 95% and reduce the MI and monthly mortgage payments”. For DPA-only detail, see our Utah down payment assistance guide.
New construction: the $20,000 state program
The Utah Legislature funds a separate First-time Homebuyer Assistance Program, and UHC administers it. It pays only toward a home that is “newly constructed but not yet inhabited”. UHC’s FAQ (updated 7/16/26) sets the terms:
- Up to $20,000 for “down payment, closing costs, and/or a permanent interest rate buydown”.
- A “0% interest, no monthly payment loan”.
- A maximum purchase price of $450,000. “Limits may be adjusted based on home location or home type.”
- You must be a first-time homebuyer (no ownership interest in a principal residence in the past three years; some single parents qualify).
- At least 12 months of Utah residency before closing.
- A UHC first mortgage, with or without the DPA Second (the program loan then records in third position).
It is not a grant. When you sell or refinance, you repay “the lesser of the amount of Program Assistance the recipient received; or 50% of the home equity amount”. A refinance into another qualifying UHC loan can instead keep the program loan in place. UHC’s FAQ says “Program funds are currently available”. Its homebuyer page keeps “a running tally of the approximate number of loans still eligible for funding”, which read 389 on September 24, 2026. This program cannot be combined with the veteran or law-enforcement grants.
The veteran grant, and a closed officer program
Utah Veteran First-time Homebuyer Grant. This pays “up to $2,500 cash” that “does not require repayment”. It covers members of the military, or veterans “who separated in the last five years”, who are first-time Utah homebuyers. The FAQ adds that you “may have owned a home in another state”. The Utah Department of Veterans and Military Affairs validates eligibility. UHC’s page says UDVMA would reopen applications on August 3, 2026, and issue certificates for closings on or after August 14. You can use any Utah-licensed lender and any conforming loan type. UHC’s counter showed 191 grants remaining.
Law Enforcement Assistance Program. This program paid up to $25,000 toward a first home for Utah law enforcement and correctional officers. It is closed: UHC says “Funds are currently depleted” and that it stopped accepting new applications and waiting-list entries on April 7, 2026.
Homebuyer education depends on the loan
UHC’s matrices make the class optional on some loans:
- FirstHome FHA/VA and the FHA/VA Mortgage: “Recommended, but not required.”
- FirstHome conventional and HFA Advantage: when all occupying borrowers are first-time buyers, “at least one borrower must complete the Homebuyer Education before closing”. The certificate must be dated within one year before the note date.
- DPA Second: the class is “recommended but not required”.
UHC does not run classes itself. Its education page lists Freddie Mac CreditSmart (free, 4–6 hours) and HUD-approved educators (8 hours; call the agency for fees).
FirstHome rules that catch buyers
- You must move in within 60 days of closing.
- No part of the home can be rented while the UHC loan is in place. That excludes a blocked-off second kitchen, a second utility meter, or “any business use exceeding 15% of the home’s square footage.”
- Lots are limited to 1 acre, or 5 acres in a rural area.
- Manufactured homes on a permanent foundation qualify under FirstHome Government, but “Manufactured homes not permitted on conventional loans.”
- Water stock certificates must be assigned to Utah Housing.
The FHA/VA Mortgage is looser here. It finances one- and two-unit homes “with an option to rent a portion of the home.”
Utah buyer questions
Is Utah Housing’s down payment assistance forgivable?
No. The traditional DPA Second is repaid monthly over 30 years. The deferred version accrues 3.5% simple interest and is due at sale, refinance or maturity. The veteran grant is the one program here that UHC says “does not require repayment”.
I owned a condo in Salt Lake two years ago. What can I use?
The FHA/VA Mortgage or HFA Advantage, each with a DPA Second. FirstHome requires three years without an ownership interest unless an exception for single parents or veterans applies.
Can I use the $20,000 new-construction money on an existing house?
No. It is limited to homes that are newly built and not yet lived in, up to $450,000 in price unless UHC adjusts the limit for location or home type.
What credit score do I need for Utah Housing?
For UHC’s FHA/VA Mortgage, 620, with a rate adjustment below 660. FirstHome needs 660 for FHA/VA and 680 for conventional. HFA Advantage needs 680.
Does the veteran grant require a Utah Housing loan?
No. Any lender licensed in Utah and any conforming program works. Your lender must get a reservation agreement from Utah Housing before closing.
Budget tools: mortgage calculator, down payment calculator, what can I afford. Closing costs are covered in closing costs in Utah. For lenders, see the Southwest lender roundup and our pre-approval guide. On loan types, read FHA requirements, the VA loan guide and FHA vs. conventional. For the wider picture, see the Utah hub and the national overview. Nearby states: Idaho, Colorado, Nevada.