Episode 7 - 25 Down Payment Assistance Options for Utah Homebuyers
“Let’s get together and help you find your down payment so you can start building equity sooner.” - Nelson Barss
25 Ways to Find Your Down Payment in Utah (Without Waiting Years)
If you’re a first-time homebuyer in Utah, the down payment can feel like the biggest blocker. We’ve taught this topic to real estate pros for years—here’s the condensed, buyer-friendly version. Our goal is simple: help you see more options than you thought you had, so you can move forward with confidence.
The Big Picture: Affordability vs. Assistance
Down payment is always required—whether you save it, borrow it, or receive it. But there’s a key tradeoff many buyers miss:
If your main concern is monthly payment, some down payment assistance options can raise that payment (due to second loans or higher rates).
If your goal is get in sooner, assistance can be a powerful bridge while you build equity.
We’ll show you the landscape so you can choose what fits your budget and timeline.
Option 1: Use What You Already Have
These sources keep control in your hands and are widely accepted by underwriters in Utah.
Save it up the old-fashioned way.
Keep funds “seasoned” in your account for two months or document the source of any large deposits.Income tax refund.
A common springboard for Utah first-time homebuyers.Sweat equity (with documentation).
Labor and materials you’ve put into a home—especially in lease-option situations—can count when it’s written into the contract and verified.Sell personal assets.
Vehicles, RVs, equipment, art—remember this is only acceptable with a paper trail (ownership, bill of sale, deposit).Rent credit (in lease-to-own).
Only the amount paid above market rent can count, and it must be documented by the appraiser and the contract.Agent commissions (yours or an eligible family member’s).
Can be used or gifted for down payment when allowed.Penalty-free IRA withdrawal (up to $10,000 for first home).
Penalty-free but taxable—confirm with your tax pro.Land equity (for construction).
Existing land you own can satisfy down payment requirements within the appraisal structure.Have the seller pay closing costs.
Negotiate seller concessions (often up to 3%) so more of your cash can go to down payment.
Option 2: Borrow the Down Payment
These programs exist to get Utah buyers over the hump—just remember they often increase monthly payment compared to bringing your own funds.
Utah Housing (Zero-Down structure).
A second mortgage funds your minimum down payment (FHA or conventional). It’s long-running and reliable, with published rates and minimum 620 credit (better options above 660).Chenoa & National Homebuyers Fund (forgivable seconds).
Assistance may be forgiven after ~3 years of on-time payments (terms apply). If you refinance early, you’ll likely repay the assistance—so timing matters.USDA Rural Development (100% financing).
Great rates, zero down, eligible in rural areas (think: north of Willard/Brigham City, south of Spanish Fork, Tooele, Wasatch Back like Morgan/Huntsville/Eden, and much of Cache Valley outside Logan City). Income/DTI and area limits apply.VA Home Loan (0% down).
Zero down, no monthly mortgage insurance. A funding fee usually applies and is financed into the loan—waived with a qualifying service-connected disability (≥10%).401(k) loan (borrow from yourself).
Repay yourself over time; generally no tax/penalty, and the payment doesn’t count against your DTI for mortgage qualifying.Life insurance cash value loan.
Borrow against cash value (confirm terms and any tax considerations).Stocks/bonds/mutual funds.
Liquidate or borrow against investment accounts.Auto refinance / cash-out on a paid-off car.
Tapping vehicle equity can create down payment funds (we’ll factor the new car payment into qualifying).Other secured loans.
You can borrow from anyone if the loan is secured by collateral (including a properly documented family loan secured against the property).
Option 3: Gifts & Grants
Family gift funds.
Parents, grandparents, or close family can gift down payment (we’ll handle the documentation).Gift of equity (buying from family).
Write the contract at full appraised value, then apply an equity gift addendum—the gift can satisfy down payment and reduce/avoid mortgage insurance.Pooled gifts (wedding/registry or dedicated account).
Acceptable when donors and amounts are documented—no individual letters needed in many setups.Employer assistance.
Some employers reimburse closing costs or contribute to down payment.State of Utah Programs (current examples).
$20,000 down-payment assistance for new homes ≤ $450,000 (repaid at sale/refi).
$2,500 grant for qualifying veteran first-time buyers (true grant).
$70,000 assistance for buyers with disabilities (no monthly payment; repaid at exit).
Availability and funding fluctuate—let’s confirm what’s open for you.6. Cities & Counties (local assistance).
Davis County: up to $50,000, designed to keep housing payment at ≤35% of income (forgivable/repay terms vary; funding windows matter).
Ogden City: up to $10,000 (no interest, no monthly payment; repaid at exit).
Weber, Salt Lake, Utah Counties, and Bear River region also cycle funds annually, typically with income caps and purchase limits.
We can package and submit your application so funds arrive on closing day.7. What’s next?
New programs launch regularly. We stay on it so you don’t have to—and we’ll match you to the best fit when you’re ready.
How We Help Utah Buyers Choose Wisely
We’ll compare payment side-by-side (e.g., 3% down vs. zero-down with assistance).
We’ll flag income limits, geographic eligibility, and forgiveness timelines up front.
We’ll handle DPA paperwork with the city/county so funds are ready at closing.
Curious which options apply to your price range in Salt Lake County, Davis, Weber, Utah County, Cache Valley, or Tooele? Book a free consult and we’ll map it out together
Things you can do right now to get close to a down payment
Season and document your funds (2 months).
List 3–5 personal assets you could sell or borrow against.
Check USDA eligibility for homes you like.
If eligible, price VA vs. conventional side-by-side.
Ask family about a gift or gift of equity (if buying from family).
Have us pre-screen your state/county DPA options and funding windows.