Utah Housing Down Payment Assistance Second Mortgage

What is Utah Housing Down Payment Assistance Second Mortgage?

Utah Housing Down Payment Assistance Second Mortgage is a second mortgage for homebuyers in Utah, administered by Utah Housing Corporation (UHC).

• Utah Housing Corporation's Down Payment Assistance Second Mortgage finances all or part of a borrower's down payment and closing costs via a 30-year fixed second mortgage paired with a UHC first mortgage. Two options exist: a Traditional DPA of up to 6% (max $27,500) at 1% above the first-mortgage rate with a required monthly payment, and a Deferred DPA of up to 3.5% (max $27,500) at 3.5% deferred simple interest with no monthly payment. UHC originates and services both loans, enabling many borrowers to buy with little or no cash to close.
• Finance down payment and closing costs as a second mortgage.
• Little-to-no cash required at closing.
• Traditional (6%/$27,500) or no-payment Deferred (3.5%/$27,500) options.
• One servicer for both mortgages.
• Works with FHA, VA, and Freddie Mac HFA Advantage UHC first mortgages.
• Funding comes from Utah Housing Corporation (state HFA; UHC originates, purchases, and services both first and second mortgages).

How much assistance does it provide?

Utah Housing Down Payment Assistance Second Mortgage offers up to $27,500 in assistance.

• Award tiers: Traditional DPA: up to 6% of first mortgage (max $27,500); 30-yr fixed second at 1% above first mortgage rate (cap 8%, floor=first rate); monthly payment required. Deferred DPA: up to 3.5% (max $27,500); 30-yr fixed 3.5% deferred simple interest; no monthly payment; balance+interest due at maturity/sale/refinance.
• The program can be combined with UHC FirstHome / FHA-VA / Freddie Mac HFA Advantage first mortgages; SB240 New Construction assistance (3rd lien).
• Amounts are the program's published maximums, not an offer — Utah Housing Corporation (UHC) determines any individual award.

Do you have to pay it back?

Utah Housing Down Payment Assistance Second Mortgage is a second mortgage and is repaid under the terms set by Utah Housing Corporation (UHC).

• Repayment is triggered by Traditional DPA: amortizing monthly payments over 30 years (paid concurrently with the first mortgage to UHC). Deferred DPA: outstanding principal and deferred interest due upon maturity, sale, or refinance (no monthly payment).
• The assistance is recorded in Second (subordinate to the UHC first mortgage) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Utah Housing Down Payment Assistance Second Mortgage is open to buyers who will live in the home as their primary residence.

What are the income limits?

Utah Housing Down Payment Assistance Second Mortgage limits household income to $162,500.

• The limit applies to total household income, not only the borrower’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?

Utah Housing Down Payment Assistance Second Mortgage caps the purchase price at $772,400.

• Eligible property types include Single-Family (detached), Condominium, PUD, and Two-unit owner-occupied (FHA/VA and Freddie Mac only).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Utah Housing Down Payment Assistance Second Mortgage serves buyers purchasing anywhere in Utah.

How do you apply?

Applications for Utah Housing Down Payment Assistance Second Mortgage go through Utah Housing Corporation (UHC), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Utah Housing Corporation (UHC) to reserve funds

   Funds are reserved through Reserved by a UHC-approved Participating Lender via UHC PowerLender portal at first-mortgage rate lock, and are subject to availability.

2. 2

   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.