Down Payment Assistance

The Down Payment Assistance (DPA) programs administered by Community Development Corporation of Utah (CDCU) are federally funded and are to be used to help income-eligible, first-time home buyers purchase single family residences. Funds may only be used for down payment requirements and/or closing costs associated with a first mortgage. 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 qualified basis—no waiting lists.

See below for availability of funds. This page is updated once funds become available, so check back often.

Areas

Salt Lake County

Funds Available

Available Funds0%

Taylorsville City

Funds Available

Available Funds0%

Salt Lake City

Funds Available

Available Funds0%

*NEW: IMPORTANT UPDATES HAVE BEEN MADE TO ALL APPLICATIONS. Please read the entire application for the program you are applying to carefully and use the provided checklist to submit a fully completed application. Priority will be given to applicants that provide certification of a HUD-approved Home Buyer Education class and pre-purchase housing counseling through a HUD-approved housing counseling agency at the time of submission.

*NOTE: Please pay special attention to updated Process & Timeline information below for important details and to allow necessary time to complete the process.

West Valley City and West Jordan have their own programs administered through their city offices. Murray down payment assistance is administered through Neighborworks Salt Lake.

Eligibility Requirements and Process Timeline

  • Applicant(s) must be under contract (have an accepted offer) to purchase a property in order to apply.
  • Household income cannot exceed 80% of the area median income (AMI). Please See table at right.
  • Maximum debt-to-income ratio: 45%. Household income includes all income earned by all adults (18 years of age or older) that will be living in the home to be purchased. Income evaluated will typically include, but is not limited to: wages/salaries, regular overtime, commissions, tips and bonuses, social security, disability, profit & loss statement, child support, alimony etc.
  • Applicant must be a U.S. citizen, permanent resident, non-citizen national, or non-permanent resident with lawful status and be 18 years of age or older.
  • Applicant must be a First-time Homebuyer. In general, a First-time Homebuyer is defined as someone who has not owned a home for the three years prior to the home purchase.
  • Eligible owner occupied properties are: existing and new construction single-family residences, condominiums or town homes. Duplexes, multi-family units and mobile or manufactured homes are not eligible.
  • Maximum purchase price for Salt Lake City: $289,750
  • Maximum purchase price for Salt Lake County & Taylorsville: $299,500
  • Salt Lake County & Salt Lake City programs require that the buyer must contribute 1% of the contract sales price in personal funds towards the purchase (gift funds may count toward this).
  • The Taylorsville program requires that the buyer must contribute $500 in personal funds towards the purchase.
  • Buyer cannot have more than 10% of the cost of the home being purchased in liquid funds. Excess liquidity will disqualify the buyer from this program.
  • Total combined down payment from all sources (including DPA funds) cannot exceed 10% of the purchase price.
  • The deferred loan must only be applied to the down payment and/or closing costs. There is NO cash back allowed; the assistance will be reduced in the event there are excess funds.
  • Purchased property must be zoned for residential use only, unless it can be established that said property is in an area that has been predominately residential for many years and there is no government program endangering the residential integrity of the area.
  • The purchase of said property must not lead to the displacement of any individual other than the Seller and his/her/their immediate family (cannot buy a home currently occupied by renters).
  • The only types of acceptable financing are 30-year fixed rate loans such as FHA, Conventional, VA, etc.
  • A Visual Assessment must be completed by CDCU on all homes for health and safety concerns and homes built prior to 1978 will be assessed for lead-based paint concerns.

*CDCU reserves the right to require postponement of a scheduled closing date and to modify any or all of the above eligibility criteria as determined necessary by its Board of Directors and/or Salt Lake County.

Above figures are effective as of April 2017. We use current income projected out for 12 months. We do NOT use last year’s taxable income. (These figures change annually and are published by HUD).

Award Amounts and Repayment Overview

City Award Amount Repayment Maximum Purchase Price
Salt Lake City (Proper) Up to $7,500* Forgiven after 15 years $289,750
Taylorsville Up to $5,000* 20% forgiven each year for years 1-5 $299,500
Salt Lake County** Up to $5,000* Never Forgiven $299,500

PROGRAM SPECIFICS BY CITY:

*Actual award amount is based on individual need and is determined on a case-by-case basis.

** These funds cover all areas of Salt Lake County except Taylorsville, Salt Lake City, West Valley City, West Jordan, and Murray. West Valley City and West Jordan down payment assistance is administered at their city offices. Murray down payment assistance is administered at Neighborworks Salt LakeIf the purchase property is located in Sandy or South Jordan, the award amount is up to $7,500.

  • Process and Timeline

  • The DPA process generally takes 25-30 days to complete. It’s very important to submit a fully completed application as soon as possible once a buyer is under contract. Applications that are submitted last minute or without reasonable time to process will need to request an extension upfront. We will not process rushes, NO EXCEPTIONS.

    1. Once a fully completed application is submitted, it will generally take 2-3 business days to provide approval or denial. When experiencing high volumes it may take 3-5 business days to provide results. CDCU will not process incomplete applications, review will only start when a complete application with all the information and checklist documents is submitted. Incomplete applications will delay the process.*Please Note: Priority will be given to applicant(s) who have completed and provide certification of a home buyer education course and pre-purchase counseling through a HUD-approved housing counseling agency at the time of submitting the application. Funding is contingent on the completion of both the education and counseling, NO EXCEPTIONS.
    2. Notice will be given to applicant regarding approval or denial and reason for denial via letter/email
    3. If applicant(s) is approved, CDCU will send two separate emails with set of instructions to the lender. The first email will confirm client approval and request a copy of the completed Lender Affidavit, title report, and appraisal. Once these documents have been received a second email will be sent communicating final instructions with a list of compliance requirements that must be met and included in the Closing Disclosure.
    4. CDCU will order an environmental report from Salt Lake County which may take up to one 1 week to complete the FEMA compliance verification.
    5. Once environmental clearance is provided by Salt Lake County, a forty-five (45) day Letter of Commitment will be issued and sent to the applicant(s) to review, sign and return. This ensures to the client and lender that funds have been reserved for the purchase of the property stated. If applicant withdraws offer on home the commitment and application becomes void.
    6. After receiving environmental clearance, CDCU will order the visual assessment which may take 1-2 weeks to complete. Visual assessment report findings will be communicated to applicant, realtor and lender. CDCU recommends that any finding gets resolved, as it is in  the best interest of the applicants health & safety.
    7. Closing Disclosure from lender must be received at least 3 days prior to settlement date. CDCU needs to review and confirm that all program compliance requirements are satisfied and allow sufficient time to request changes if needed. Additionally, both the DPA closing packet and DPA check need to be ordered and prepared, which may take 2-3 days to get ready for pick up by the Title Company.

Additional Application Requirements

Non-Occupant Co-Signers

First-time homebuyers who will have a 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 and applicant debt ratio.

Credit Scores

There is no minimum credit score requirement to qualify.  The credit report submitted with the application will be used to calculate the applicant’s debt ratio.

HUD Homes

 If the purchase property is owned by HUD the Seller Affidavit is not required to be submitted with the application.

Short Sales

In order to submit a DPA application on a short sale property there must be 3rd party approval on the purchase price.  An approval letter from the seller’s lender must be submitted in order to consider the application complete.

Repayment Terms and Conditions

The terms of the deferred loan/grant have no payments due and no interest for all programs. The loan terms for Salt Lake County do not expire. The loan term for Salt Lake City will expire after 15 years. The loan term for Taylorsville will expire after 5 years. However, the deferred loan/grant will not be forgiven and shall be repaid by the recipient in full if the homeowner sells, exchanges, or transfers title; decides to refinance for any other reason than to reduce their interest rate and lower their monthly payment; or ceases to use the property as their primary residence before loan term expires. Subordinations will only be allowed for rate and term refinance transactions for the purpose of removing private mortgage insurance (PMI), reducing monthly payment and/or lowering interest rate. Cash-out refinances may be allowed only if the cash will be used for home repairs or to pay off student debt — subject to review of appropriate documentation. For full details on the requirements for subordinations visit our page: https://cdcutah.org/work-with-us/subordination-and-payoffs/. There is a customary fee associated with any subordination or reconveyance of the lien that must be paid by the homeowner. The current processing fee is $75.

Pay for your Visual Safety Assessment Here ($75.00)

and please put the address of the property in the comments section

Subordination and Payoff Requests

Property Address Search

If you are unsure whether or not the property you are considering is in an eligible area you may use the link below to look up the address.  You may also contact the administrator to receive help making this determination (see Summary of DPA Programs below for contact information).  After clicking on the address search link you will need to enter the street address in the parcel search box. You may need to move the parcel search box to zoom in & out on the map to make the city boundaries visible.

Summary of DPA Programs in Utah

Salt Lake City, Taylorsville & Salt Lake County

Community Development Corporation of Utah
Brayan Nava 801.994.7222 x 100

Please allow 24 hours for a return phone call. For a faster response, please email Brayan at brayan@cdcutah.org.

West Valley City

West Valley City Housing Authority
Sharena Sweeny: 801.963.3369
www.wvc-ut.gov/grants

West Jordan City

Chuck Tarver: 801.569.5062
charlest@wjordan.com
www.wjordan.com

Ogden City

Shanna Dayton: 801.629.8940
shannadayton@ogdencity.com
http://ogdencityhomes.com/programs/owning-in-ogden/

Davis County

Davis Community Housing Authority
Mary Swanstrom: 801.939.9198
www.daviscommunityhousing.com

Weber County

Weber County Housing Authority: 801.399.8691

Laura Peters: 801.399.8692

Tooele County

Tooele County Housing Authority
Cory Cook: 435.882.7875
www.co.tooele.ut.us/housing.htm

Utah County

Cheryl Joyner 801.852.6160
cjoyner@provo.org
www.loantoown.net
www.provo.org/welcomehome

Box Elder, Cache, or Rich Counties

Dolores: 435.752.7242
doloresb@brag.utah.gov

Dave: 435.753.1112 x 104 (Logan)

Hurricane City

Toni: 435.635.2811 x 118
tonif@infowest.com

Individual Development Account (IDA)

Fair Credit Foundation IDA Program

877.787.0727
ida@faircredit.org

All information may not be current & is subject to change at any time.