HOME HELP: First-time homebuyers can get $20k for down payment on brand new homes – and you only need to meet four criteria
According to THE SUN, First-time homebuyers in Utah can now benefit from a state-funded program that offers up to $20,000 in financial assistance. The First-Time Homebuyers Assistance Program, launched in summer 2023, aims to help families with low to moderate incomes purchase their first home.
How the Program Works
The program provides a zero-interest loan of up to $20,000, which can be used for down payments, closing costs, or reducing loan interest. It was established in response to major housing shortages and rising home prices. With $50 million allocated for the program in 2023, approximately $26 million has already been distributed, assisting over 1,300 families.
David Damschen, CEO of the Utah Housing Corporation, which oversees the initiative, emphasized the impact of the program: “A lot of the homebuyers we are helping would not be able to purchase a home were it not for this program,” he told KUTV.
To qualify for assistance, homebuyers must use the funds exclusively for newly built homes priced at $450,000 or less. This requirement encourages developers to focus on affordable housing. Most participants have purchased condos or townhomes, with typical prices around $390,000.
Eligibility Criteria
Prospective homebuyers must meet the following criteria to qualify:
- Residency: Applicants must have lived in Utah for at least 12 months before closing.
- First-Time Homebuyer: The applicant and their spouse must not have owned a principal residence during the three years prior to purchase. Exceptions apply to displaced homemakers or single parents who previously owned a home with their spouse or lived in a home owned by their spouse.
- Income Limits: Applicants’ income must be within the limits set by the Utah Housing loan program.
- Credit Qualification: Applicants must be credit-qualified for a mortgage loan purchased and serviced by the Utah Housing Corporation.
Future Adjustments and Opportunities
Currently, nearly half of the program’s funding remains available, with about $24 million still up for grabs. Around 1,000 more families can potentially benefit from this financial assistance.
Damschen also noted that there may be future adjustments to the program, including changes to the $450,000 cap on properties, to better address the needs of first-time buyers.
Other Opportunities
In related real estate news, homeowners can find incredible deals, such as three-bedroom homes starting at just $1, and six-bedroom homes with extra lots available for $7,500. Experts advise buyers to act quickly to seize these opportunities.
