First-Time Homebuyer Programs in Southern Utah: What You Need to Know

by Dave Diegelman

🏡 First-Time Homebuyer Programs in Southern Utah: What You Need to Know

Buying your first home is a big step—and if you're navigating the market in Southern Utah, you don't have to go it alone. There are several excellent programs designed to help first-time buyers with down payments, closing costs, and favorable loan terms. Many of these are offered through the Utah Housing Corporation (UHC) and other federally backed options.

Here’s a quick guide to the most helpful programs available today:

🏦 Utah Housing Corporation (UHC) Programs

💰 Utah First-Time Homebuyer Assistance Program (SB240)

Up to $20,000 in assistance for newly built homes
Can be used for down payment, closing costs, or rate buydown
Loan must be repaid when you sell or refinance
First-come, first-served—funds are limited!

🏠 UHC FirstHome Loan

Designed for modest income first-time buyers
Offers low interest rates
Can be combined with UHC’s second mortgage for down payment assistance
Requires 660+ credit score and income/purchase price limits

🔑 UHC Down Payment Assistance

A second mortgage that helps cover down payment and closing costs
Can be used with FHA, VA, or conventional loans
Great for buyers short on upfront funds

🎖️ Veterans First-Time Homebuyer Grant

Up to $2,500 grant for eligible veterans
Does not need to be repaid

🌄 Other Helpful Programs

🌱 USDA Loans

Zero down payment
For low-to-moderate income buyers purchasing in designated rural areas (many parts of Southern Utah qualify)

🏘️ FHA Loans

Backed by the Federal Housing Administration
Require as little as 3.5% down
More flexible on credit requirements

📉 Conventional 97

Requires only 3% down
Backed by Fannie Mae and Freddie Mac
Allows third-party down payment assistance

📌 Important Notes for Southern Utah Buyers

✅ Utah Residency: Many programs require at least 12 months of residency
💲 Income Limits: Some programs have caps—check before applying
🕒 Limited Funds: Popular programs like SB240 are first-come, first-served
🧑‍🏫 Education: A homebuyer education course may be required
🏦 Participating Lenders Only: Most UHC programs must be accessed through approved lenders

🎯 Ready to Buy?

Whether you're buying in St. George, Washington, Hurricane, or Santa Clara, these programs can make your first home more affordable and achievable.

Let’s connect and see which program you qualify for. A well-informed strategy could save you thousands upfront and for years to come.

Dave Diegelman - Equity Real Estate

(435) 703-4041

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