Provo Utah First Time Home buyers programs

Down Payment Assistance in Provo, Utah

• Buy a home within the city limits of Provo, Utah
• Household income may not exceed guidelines
• The purchase cannot displace a current renter
• $1,000 of the buyer’s own money must be used to purchase the home
• The property must be a single-family residence, a home with a legal accessory apartment, a townhome, or one half of a twin home.

The Home Purchase Plus Program is a loan of up to $60,000.00 in assistance for buyers whose household income is at 80% or less of the Area Median Income (see chart) purchasing a home in Provo.

This second-position loan for first time home buyers is 0% interest and deferred payment – with no payments due until the property ceases to be the primary residence.

Borrowers may be eligible for 50% loan forgiveness if the property remains their primary residence for the entire period of affordability.

Qualified applicants may receive assistance equal to up to 10% of the home’s sales price, plus eligible closing costs, less the required $1,000 applicant contribution, and not to exceed the program’s maximum. Funds may be used toward the down payment, eligible closing costs, and/or a fixed-rate interest buy-down. Additional underwriting and calculation criteria apply.

Your monthly expenses will be evaluated for affordability limits.  For qualifying ratios, see underwriting criteria.

Forgiveness is not incremental. For example, on a $60,000 loan, forgiveness of any amount is not granted until the end of the specified Period of Affordability (15 years), contingent upon proof of continuous primary residency.

The Loan to Own Program is a loan of up to $40,000.00 in assistance for buyers whose household income is at 80% or less of the Area Median Income (see chart), purchasing a home in Utah County, except for Fairfield, Highland, and Woodland Hills.

This second-position loan for first-time home buyers is 0% interest and deferred payment, with no payments due until the property ceases to be the primary residence.

Borrowers may be eligible for 50% loan forgiveness if the property remains their primary residence the entire period of affordability.

Forgiveness is not incremental. For example, on a $40,000 loan, forgiveness of any amount is not granted until the end of the specified Period of Affordability (10 years), contingent upon proof of continuous primary residency.

Assistance Amount	Period of Affordability
$15,000 – $25,000	5 Years
$25,001 – $50,000	10 Years
Over $50,000	15 Years

Home Purchase Plus

The Home Purchase Plus is a city-wide down payment assistance program for homes in Provo, Utah. It is a 0% interest, deferred payment loan to assist lower-income/individuals (see income chart below) in becoming home owners. No payments are due as long as the borrowers continue to live in the home as their primary residence. The down payment assistance loan must be repaid if the borrower sells, exchanges, transfers Title, decides to refinance for any other reason than to reduce their interest rate and/or lower their monthly payment, or if they cease using the property as their primary residence. A $5,000 penalty will be assessed if the home is sold within 2 years of obtaining the loan.

The Home Purchase Plus program provides down payment assistance and/or closing cost assistance of up to 6% of the purchase price or $10,000, whichever is less. Up to $20,000 is available for down payment assistance in the Liberty Place Development.

The borrowers must be first-time home buyers, meaning that they can not have owned a home in the previous three years and must be able to put down $1,000 of their own money. The purchase price of the home can not exceed $181,000 for existing homes and $209,000 for new homes. Homes can be a single-family home, a home with a legal accessory apartment, one half of a twin home, or a townhome. Down payment assistance for condominiums is only available in the Central Business District.