Down Payment Assistance

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 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 served 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

NO FUNDS CURRENTLY AVAILABLE. We will receive new funds sometime in the fall.

Taylorsville City

NO FUNDS CURRENTLY AVAILABLE. We will receive new funds sometime in the fall.

Salt Lake City

NO FUNDS CURRENTLY AVAILABLE. We will receive new funds sometime in the fall.

The Down Payment Assistance Program is a first-come, first-serve program. We do not keep waiting lists or accept applications if we do not have funds. Please use this time to take a HUD-approved Home Buyer Education class and visit with a HUD-approved Homeownership Advisor.

West Valley City and West Jordan have their own programs administered through their city offices

  • Household income cannot exceed 80% of the area median income (AMI)
  • Household income includes all income earned by all adults (18 years or older) living in the home. If you make no more than the guidelines listed you are eligible to apply.
  • Maximum debt-to-income ratio: 45%*
  • Maximum purchase price for Salt Lake City, : $241,000
  • Maximum purchase price for Salt Lake County, Taylorsville & Unincorporated SL County: $299,500
  • Buyer must contribute 1% of the contract sales price in personal funds toward purchase (gift funds may count toward this)
  • Buyer will not 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 down payment at closing (including DPA funds) cannot exceed 10% of sales price
  • Mortgagees must comply with FHA fees guidelines (lender fees cannot be excessive)

*Debt ratio calculation notes: Child support and non-taxable social security are not included in the household income. We do not “gross up” non-taxable income when determining debt ratios. We take the full amount awarded before any deductions.

Household Size Maximum Yearly Household Income
1 Person $42,250
2 Persons $48,250
3 Persons $54,300
4 Persons $60,300
5 Persons $65,150
6 Persons $69,950
7 Persons $74,800
8 Persons $79,600

Table shows 80% of AMI in the Salt Lake County Metropolitan Statistical Area as of April 2017

Award Amounts and Repayment Overview

City Award Amount Repayment Maximum Purchase Price
Salt Lake City (Proper) Up to $7,500* Forgiven after 15 years $241,000
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, and West Jordan. West Valley City and West Jordan down payment assistance is administered at their city offices. If the purchase property is located in Sandy or South Jordan, the award amount is up to $7,500.

  • Process and Timeline

    1. Buyers are required to complete a HUD-approved Home Buyer Education course and receive pre-purchase counseling from a HUD-approved agency before applying.
    2. Applicants must be under contract (have an accepted offer) to purchase a property in order to apply.
    3. After we receive a complete application, notification of approval or denial will be provided within 2-3 business days. During periods of high volume the notification will be provided within 3-5 business days.
    4. If approved, lender will be notified of the award and will be sent two emails, one requesting additional documentation and another stating final instructions.
    5. We will order an environmental report (Up to 1 week turnaround).
    6. Upon environmental report sign-off, letter of commitment is sent to buyer to review, sign and return.
    7. We will order the visual assessment inspection (1-2 weeks turnaround).
    8. We need to review the closing disclosures at least 3 days prior to closing.
    9. We will then order the check and get the closing packet ready (1-3 days turnaround)

    *In summary: it takes at least 20-30 days to complete the entire process. All parties must manage accordingly and set the right expectations.

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

No monthly payment is required and no interest accrues on any DPA deferred loan/grant.  Home buyers will sign a promissory note and a deed of trust which will be recorded against the property.  The DPA is paid back if/when a triggering event occurs, such as the sale of the home, transfer of title, moving out of the home, refinancing to take out equity, etc.  Please review the Award Amounts & Repayment Overview section for specifics of the DPA program based on the location of the home purchased.

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
Jeanette Cabral: 801.994.7222 x 204, Brayan Nava 801.994.7222 x 100

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