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Loan-to-Own Program

Provo, Utah

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Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$551,000

Highest purchase price the program allows

Repayment

Grant

Not repaid

What is Loan-to-Own Program?

Loan-to-Own Program is a grant for homebuyers in Provo, Utah.

  • Provo's Loan-to-Own Program provides a low-interest, amortizing second-mortgage DPA up to ~$15,000 for income-qualified first-time homebuyers in Provo City. Fixed-rate amortization over 10-15 years; HOME-funded.
  • Repayable second-mortgage DPA up to ~$15,000 for low-to-moderate-income (<=80% AMI) first-time homebuyers in Provo City. Amortized over 10-15 years at low fixed rate. HOME-funded. Maximum purchase price $551,000. Minimum 650 FICO.
  • Funding comes from Local and HOME.

Do you have to pay it back?

Loan-to-Own Program is structured as a grant, so it is not repaid.

  • Repayment is triggered by Monthly amortizing payments over 10-15 year term and balance due on sale, refinance, or non-occupancy.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Loan-to-Own Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Minimum 650 FICO
  • A completed homebuyer education course, through HUD-approved homebuyer education required.
  • Residency: Property must be in Provo City
  • Citizenship or immigration status: Per HOME eligible-status rules
  • First-time homebuyer. Income at or below 80% AMI ($55,550-$104,700). Purchase price at or below $551,000. Property in Provo City. Minimum 650 FICO. Minimum $1,000 borrower contribution. Must complete HUD-approved education. Borrower repays second over 10-15 year amortization.

The program excludes

  • Manufactured homes
  • Purchases above the $551,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Loan-to-Own Program limits household income to 80% of the area median income, which varies by county and household size.

  • Up to 80% AMI for Utah County HUD limits; $55,550-$104,700 by household size.
  • The limit applies to total household income, not only the borrower&rsquo;s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Loan-to-Own Program caps the purchase price at $551,000.

  • Eligible property types include Single-family detached, townhouse, condominium, PUD.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

Loan-to-Own Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, American Indian and Alaska Native buyers, educators, law enforcement officers, firefighters, healthcare workers, and buyers with disabilities among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Loan-to-Own Program serves buyers purchasing in Provo, Utah.

How do you apply?

Applications for Loan-to-Own Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved homebuyer education required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Borrower applies through Provo Development Services; reservation upon approval., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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