Estimate your monthly payments, calculate total cash to close, and see how Utah's first-time buyer grants can help you buy a home faster.
* Grants reduce your total out-of-pocket cash to close.
First-time homebuyers in Utah can purchase a home with as little as 3% to 3.5% down. For a $400,000 home, that is a down payment of $12,000 to $14,000. However, through programs like the Utah Housing Corporation (UHC) and the $20,000 New Construction Grant, many buyers can cover their entire down payment and closing costs, allowing them to purchase a home with very little cash out of pocket.
Utah offers several powerful programs designed to help you cover your down payment and closing costs. Here's what you need to know.
The Utah First-Time Homebuyer Assistance Program offers up to $20,000 for purchasing a newly constructed home. These funds can be used for down payment, closing costs, or buying down your interest rate.
The Utah Housing Corporation (UHC) offers down payment assistance loans up to 6% of your first mortgage amount. This is a second mortgage that helps you buy a home with little to zero money out of pocket.
FHA loans are incredibly popular for first-time buyers in Utah because they require just 3.5% down and have more flexible credit score requirements compared to conventional loans.
Many first-time buyers mistakenly believe they need 20% down to buy a home. In Utah, that's rarely the case. Between FHA loans (3.5% down), Conventional 97 loans (3% down), and Utah Housing Corporation assistance, you can often purchase a home with very little of your own money.
The Cash to Close Formula:
Down Payment + Closing Costs (typically 2-3% of the loan amount) - Grants/Assistance = Total Cash Needed.
By using our calculator above, you can model different scenarios. For example, if you qualify for the $20,000 new construction grant on a $400,000 home, the grant will often cover your entire 3.5% FHA down payment ($14,000) and leave $6,000 to help cover your closing costs!
Connect with a local Utah mortgage expert to review your eligibility for state grants, down payment assistance, and first-time buyer programs.
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