Utah’s first-time homebuyer aid program begins Tuesday

SALT LAKE CITY — Starting Tuesday, July 11, Utahns looking to buy their first home can apply for a first-time homebuyer loan worth up to $20,000. The money can be used to cover down payments, closing costs and higher interest rates.

The Utah first-time homebuyer program was made possible through S.B. 240 the First Time Homebuyer Assistance Program, which Utah lawmakers passed during the 2023 legislative session.

“The object is to accomplish that American dream … homeownership.” Utah Senate President and S.B. 240 Sponsor Stuart Adams told KSL Newsradio. “To get people out of their apartments … [and] give them the incentive to buy.”

Under the program, people who haven’t owned a home in at least three years and have lived in Utah for one year can apply for a loan.

There are a few requirements to quality for the Utah first-time homebuyer loan

People in the program can only purchase new homes or those that haven’t been lived in. The value of the home cannot exceed $450,000. Adams said that limit will help incentivize contractors to build more affordable units.

The interest-free loan doesn’t have to be repaid until the home is sold or refinanced. The money is then put back into the program to help other families.

Lawmakers allotted the program $50 million, which will help an estimated 2,400 families, according to a Senate news release.

Skyrocketing home and rent prices along the Wasatch Front have priced many families out of a new home over the past few years. Adams said he hopes this program gives more power to the middle class, and that they can build on this program going down the road.

“My hope is that this isn’t the end … that we’re actually able to adjust it, tweak it … or even find additional things that can help people out,” Adams said.

Related reading:

• Millennials outpacing Baby Boomers in home ownership
• What are you willing to sacrifice to own a home?
• Proposal would give first-time Utah homebuyers $20,000