The Down Payment Assistance (DPA) program administered by Community Development Corporation of Utah (CDCU) is federally funded and is to be used to help income-eligible, first-time homebuyers purchase single family residences. Funds may only be used for closing and/or down payment costs. There are a limited number of deferred loans/grants available each year and qualified applicants will receive their financial award on a first come, first served basis—no waiting lists.
Programs Administered by CDC Utah - Availability is shown in the box at the right.
- Salt Lake City
- Murray City
- Salt Lake County Unincorporated (i.e. Magna, Kearns, Millcreek, White City, Copperton)
- Household income cannot exceed 80% of Area Median Income (AMI)
- Household income includes all income earned by all adults (18 years or older) living in the home. If you make less than the guidelines listed below you are eligible to apply.
|Household Size||Maximum Yearly Household Income*
*80% of Median Income in the Salt Lake County Metropolitan Statistical Area.
- Maximum debt-to-income ratio is 45%*
- Maximum sales price: $210,414
- Total down payment at closing (with DPA included) cannot exceed 10%
- Mortgagees must comply with FHA fees guidelines
*Income & debt ratio calculations note: We do not "gross up" non-taxable income (such as Social Security) when determining household income or calculating debt ratios. We take the full amount awarded before any deductions.
|Salt Lake City||**Up to 6% (not to exceed $10,000)||Forgiven after 15 years|
|Salt Lake County Unincorporated||**Up to 6% (not to exceed $10,000)||Never forgiven|
|Murray City||$5,000||50% forgiven after 15 years|
**Actual award amount is based on individual need & determined on a case-by-case basis.
Program Descriptions & Applications
Process & timeline: Applicants must be under contract (accepted offer) in order to apply. After submitting a complete application, notification of approval or denial will be provided within 2-3 business days. If approval is given we will draft a Letter of Commitment for the buyer(s) to sign. After we have a signed Commitment we can typically be ready to close in 30-45 days depending on the volume of applications in process. Buyers must complete a HUD-approved Home Buyer Education course before closing but may apply for DPA before taking the class.
Property address search: If you are unsure whether or not the property you are considering is in an elibible area to use the DPA from CDCU, use the following link to look up the address: Address Search. You may also contact the administrator (info below) if you have a question as to whether or not a particular property lies within eligible boundaries.
Short sales: In order to submit a DPA application on a short sale property you must have 3rd party approval on the purchase price.
Non-occupant co-signers: First-time homebuyers who will have non-occupant co-signer on the first mortgage may still qualify for DPA. Income from non-occupant co-signers will not be taken into consideration when determining eligibility based on household income or the applicant's debt ratio.
HUD homes: If the home being purchased is owned by HUD the Seller Affidavit does not need to be submitted with the application.
Credit scores: There is no credit score requirement to qualify for DPA. The credit report submitted with the application is only used to calculate the debt ratio.
Repayment & Security: No monthly payment is required & no interest accrues on any DPA given. The homebuyer signs a promissory note & a deed of trust is recorded against the property. DPA is paid back if/when a triggering event occurs, such as the sale of the home, transfer of title or refinancing to take out equity. If the amount owed is partially forgiven (i.e. $2,500 in Murray instead of $5,000 after 15 years), the remaining balance does not become due at that time. It would be paid back when a triggering event occurs, such as those already mentioned.
Click here for a copy of CDCU's Down Payment Assistance flyer.
Summary of Areas with Down Payment Assistance programs
Salt Lake City, Salt Lake County Unincorporated & Murray City
Jay Bladen (801) 994-7222 x 204
West Jordan City
Chuck Tarver (801) 569-5062
West Valley City
Matt Simmons (801) 963-3369
Cheryl Hurley (801) 629-8906
Mary Swanstrom (801) 939-9198
Weber County Housing Authority
Carole Bush (435) 882-7875 x123
Box Elder, Cache, or Rich Counties
Dolores (435) 752-7242
Dave (435) 753-1112 x104 (Logan)
Toni (435) 635-2811 x118
St. George City
Darren James (435) 673-3548