Overview
Utah is one of the West's pricier markets — the statewide median home price sits around $528,000, with Salt Lake, Utah, and Summit counties running higher. That affordability gap is the central challenge for first-time buyers here: incomes are solid, but prices have outpaced them. The Utah Housing Corporation (UHC) is the state's homebuyer engine, offering a menu of loan programs each tied to down payment help. The advantage Utah offers is a low, flat income tax and modest property taxes, so your carrying costs stay reasonable once you're in. The hurdle is simply getting in — which is exactly what UHC and a separate state new-construction grant are built to solve.
UHC structures its help around four loan programs: FirstHome (first-time buyers only, 660+ credit), HomeAgain and Score (open to repeat buyers, with Score allowing scores as low as 620), and NoMI (a conventional option that avoids monthly mortgage insurance). Each can be paired with UHC's DPA Second — a second mortgage of up to 6% of your first loan amount, used for down payment and closing costs (Score is capped at 4%, NoMI at 5%). Important mechanic: this is not forgivable. The DPA Second is a 30-year, fully amortizing loan you repay monthly, at an interest rate 1% above your first mortgage (capped at 8%). It's down-payment help, but you carry a small second payment.
State Programs
FirstHome Loan with DPA Second
Repayable amortizing second mortgage (30-year, 1% above first-mortgage rate, capped at 8%)HomeAgain / Score / NoMI Loans with DPA Second
Repayable amortizing second mortgage (30-year, 1% above first-mortgage rate, capped at 8%)First-Time Homebuyer Assistance Program (SB 240, New Construction)
Deferred 0%-interest loan, no monthly payment, repaid on sale or refinanceFederal Programs Available in Utah
These nationwide programs can be combined with Utah state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Utah
Utah's other major lever is the separate state First-Time Homebuyer Assistance Program, created by SB 240 in 2023 and still active in 2026 (administered by UHC). It provides up to $20,000 toward newly built homes priced at or below $450,000, usable for down payment, closing costs, or a permanent interest-rate buydown. It's structured as a 0%-interest loan with no monthly payment, repaid when you sell or refinance. The Legislature funded it with $50 million; as of recent reports, more than 1,000 families have used it, and funds remain available until depleted — so move quickly if you're targeting new construction. You can pair it with a UHC loan, stacking state DPA with the new-construction grant.
Utah's tax picture is favorable. The state levies a flat income tax of 4.45% for 2026 — the sixth consecutive year of cuts, down from 4.5% in 2025 — so every resident pays the same rate regardless of income. Property taxes are low: the effective rate is about 0.55%, roughly half the national average. The reason matters: Utah's primary-residence exemption shields 45% of your home's market value from taxation, so a home worth $528,000 is taxed on only about 55% of that, or roughly $290,000. At a typical combined rate, that's often around $2,900 a year. You must occupy the home as your primary residence to claim the exemption, so file the residential declaration with your county assessor.
Local programs add another layer. Salt Lake City, Provo, West Valley City, and counties like Salt Lake and Weber run their own down payment or rehab assistance funds — amounts and income limits vary by jurisdiction and funding cycle, so confirm current details with the city or county directly. Military buyers near Hill Air Force Base (Ogden area) or the Utah National Guard should combine VA financing with UHC programs. Your next steps: complete the UHC-required homebuyer education course, connect with a HUD-approved housing counselor, and apply through a UHC participating lender. If you're open to new construction, ask specifically about the SB 240 grant while funds last.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.