Up to $20,000 for first-time buyers on new construction in Utah

Buying a brand-new home in Utah just became more attainable for many first-time buyers. Through the First-time Homebuyers Assistance Program created by Senate Bill 240 and administered by Utah Housing Corporation, eligible buyers can access up to $20,000 to help cover the costs of purchasing a newly constructed, never-occupied home.

The funds can be used for down payment, closing costs, and/or a permanent interest-rate buydown on a qualifying Utah Housing mortgage. The program is designed both to help first-time buyers and to encourage builders to deliver more attainable new homes.

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How the assistance works

This is not a grant. It is a 0% interest loan with no monthly payment, secured by a subordinate deed of trust. You repay it only when you sell the home or refinance the first mortgage. The amount due is the lesser of the assistance you received or 50% of the home’s equity at that time. (If you refinance into another qualifying Utah Housing loan, the program loan can often be resubordinated with nothing due at that time.)

Funds can be reserved before construction starts or even before you have a signed contract. Availability is limited and continues only while funds remain.

Key rules buyers ask about

Purchase price: Maximum $450,000.
Property: Detached single-family, condo, townhome, or similar; manufactured or modular homes qualify only if on a permanent foundation. The home must be new construction or newly built and never occupied.
Buyer: First-time homebuyer under the federal three-year definition (with limited exceptions, such as certain single parents). Must have lived in Utah for at least 12 months before closing and must occupy the home within 60 days of purchase.
Loan: Must qualify for and use a Utah Housing mortgage through a participating lender. Income limits follow the corresponding Utah Housing loan program.
Stacking: Can be combined with Utah Housing’s Down Payment Assistance second mortgage (the program loan then sits in third position). Cannot be combined with Utah Housing’s veterans or law-enforcement grants.

Ready to see if a specific home or situation qualifies?

The $20,000 can meaningfully reduce cash needed at closing and, in some cases, improve the rate when it is not paired with a Utah Housing DPA second. Because the rules are specific and funds are limited, the best next step is a quick eligibility review with a participating lender.

Questions about whether a particular new-construction listing or buyer profile fits? Reach out to us and we will walk through the details with you and a participating lender. You can also contact Utah Housing directly at 801-902-8200.

Program details, availability, and limits can change. Always confirm current rules, remaining funds, and eligibility directly with Utah Housing Corporation and a participating lender before making decisions.