Down Payment Assistance

Links and Documents

DPA Info Sheet & Process
DPA Application
Community Heroes

 

Summary of DPA Programs in Utah

Click below to download a list of DPA programs throughout Utah. All information may not be current & is subject to change at any time.

DPA Programs Throughout Utah

CDCU administers Down Payment Assistance (DPA) funds on behalf of, Salt Lake County, Salt Lake City and Taylorsville. Funds are only available for the Salt Lake City Down Payment Assistance Program at this time.

Down Payment Assistance (DPA) funds are NOT available in Sandy, South Jordan, West Jordan, and West Valley City. Please check directly with these municipalities for additional information.

The down payment assistance (DPA) is awarded as deferred loans with no payments and no interest that are forgivable after a period of time. There are a limited number of DPA available each year and qualified applicants will receive their financial award on a first come, first qualified basis-no waiting list, no funds reserved.

Application Submission

All applicants must submit a fully completed application with the household’s most current information and with copies of all the documents listed on the “New Application Checklist.” Applications submitted with any missing information or documentation will not be accepted and/or denied. Once complete information has been submitted, CDCU will evaluate eligibility and contact the applicant if additional information is needed. After the application is processed, a final review will be conducted by the CDCU DPA committee to determine approval or denial. Notification of the CDCU DPA committee’s review results will be disclosed within 5 business days.

Homebuyer Education

The applicant must attend a HUD-approved homebuyer education class and submit a completion certificate from one of the approved course providers:

Process Steps and Time

25-30 days (We are unable to process rushes)

  • Application Eligibility & Underwriting Review: Results response provided within 5 business days
  • Environmental Report: Once CDCU has qualified the applicant, CDCU will request and obtain environmental clearance from participating municipality (Up to 1 week to complete)
  • Letter of Commitment & Lead Based Paint form: CDCU must receive environmental clearance first to send this letter (1-2 business days to complete)
  • Visual Assessment: CDCU will order the visual assessment through a contract company. Disbursement of funds is contingent upon the property passing the visual assessment inspection. (1-2 weeks to complete)*Please note that smoke detectors must be installed on every floor and in each bedroom.*Radon Gas Test: (offered by Salt Lake City only)If Applicant(s) agree to have the free radon gas testing done, CDCU’s assigned agent will perform a radon gas test to identify the level of radon gas present in the property. Applicant(s) will be strongly encouraged to mitigate any test levels that are above 4.0pCi/L. This applies to all housing types (single family, townhome, condominium, etc.)If the radon test results are over 4.0pCi/L, mitigation is not required. The applicant(s) may proceed with the transaction and receive down payment assistance. If the applicant(s) choses to mitigate, the cost of radon gas mitigation will be the responsibility of the seller and/or buyer.
  • Due Diligence: CDCU needs to review the appraisal report, title report, lender affidavit as well as the evidence of homeowner’s insurance reflecting CDCU as additional insured. (1-2 business days to complete)Please note: CDCU must remain an additional insured on the homeowner’s insurance until the deferred loan is paid in full.
  • Review Closing Disclosure (CD):CDCU must receive a copy of the CD 3 days prior to closing for review and approval of program compliance requirements. CDCU needs adequate time to complete the DPA closing packet. (This includes a recorded trust deed, notice of default, and promissory note). We ensure all items are reflected correctly and must sign off of the CD in order to release funds. (3 business days).
  • Settlement:Once all items have been satisfied, CDCU will wire transfer the DPA award amount minus the $75.00 visual inspection fee and applicable wire fee. (3 business days to complete)

Loan Documents To Be Returned To CDCU (after closing of the DPA)

  • Original Promissory Note
  • Original & Copy of Recorded Trust Deed
  • Original & Copy of Recorded Request for Notice of Default
  • Original Signed Visual Assessment Disclaimer
  • Copy of the buyer signed Closing Disclosures
  • Certified copies of 1st Mortgage Note, Deed of Trust, First Payment Letter and Warranty Deed
  • Copy of the Final Title Policy or Title Insurance Policy issued to Lender

Visual Assessment 

Before issuing a DPA, an inspector will be in contact with the real estate agent or owner to perform a visual assessment of the property.  The inspector will check for the presence of health and safety concerns, including testing for lead-based paint dangers in homes built prior to 1978 as required by federal guidelines (HUD: 24 CFR Part 35 subpart K). A report will be provided with the results and will indicate if there is any remediation required. The current assessment fee is $75.00. This fee along with any other fee associated with the down payment assistance transaction will be taken from the award amount at closing. Please be aware that current regulation states that homes being purchased using federal funding must have a smoke detector in all bedrooms and common areas of the home and carbon monoxide detectors on every level of the home.

**Radon Testing is offered only to Salt Lake City DPA program applicants. (See visual assessment)

Questions and Additional Information

If you have any questions or concerns regarding the different DPA programs or the application process please contact our office (801)-994-7222 TY711 or email us at . Se habla español, se fala Português; interpretation services are available upon request.