SALT LAKE CITY (KUTV) — A state program to assist first-time homebuyers in Utah celebrated its one-year anniversary in the summer of 2024, and more funding is available to assist even more families.
Launched in 2023, the First-Time Homebuyers Assistance Program will provide low- to moderate-income families with an interest-free loan of up to $20,000 to help them purchase their first home.
The program was created by Utah state lawmakers to make home ownership more accessible at a time of significant housing shortages and high real estate prices.
In 2023, Utah lawmakers appropriated $50 million for the program. To date, the program has disbursed $26 million and helped more than 1,300 families purchase their first home, according to David Damschen, CEO of the Utah Housing Corporation, the public agency that oversees the initiative.
“Many of the homebuyers we help would not be able to buy a home without this program,” Damschen said.
The interest-free loans are capped at a maximum of $20,000 and can be used for a down payment, closing costs or to reduce interest on a home equity loan.
The funds are intended exclusively for the construction of new homes costing $450,000 or less and are intended to encourage developers to create more affordable housing in a market with limited supply.
“Most of these units are purchased in Utah County and Tooele County, predominantly condos or townhomes,” Damschen said, highlighting the types of properties new homeowners are purchasing through the program.
The program aims to assist families who might otherwise struggle to afford a home purchase in today’s market, as traditional single-family homes on larger lots become increasingly unaffordable for first-time buyers.
“Many people start out buying a house like their parents or grandparents did: two bedrooms, two bathrooms, a quarter-acre lot with a garden. We live in an environment where that’s probably not realistic for many first-time buyers,” he said.
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Damschen also pointed out that many people who qualify for the First-Time Homebuyer Assistance Program may also be eligible for other government programs, such as down payment assistance, that can further help them purchase a home.
With nearly half of the allocated funds still available, the program continues to offer opportunities for more families to benefit.
“People are so discouraged and think they can’t buy their own home. But in fact, it is possible,” says Damschen.
Damschen said there are discussions about possible changes to the program – such as potentially adjusting the $450,000 cap up or down for different property types. Most buyers who have qualified for the program have purchased townhomes and condos in the $390,000 range.
Interested applicants are encouraged to review their options and apply.
For more information, visit the Utah Housing Corporation website.
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