Last updated: April 2026 · Program availability changes frequently
Down Payment Assistance in Salt Lake City: Overview
Utah Housing Corporation runs three separate DPA products. Most buyers only ever hear about one. That is the critical gap. UHC FirstHome provides up to 6% of the loan amount forgivable over the life of the loan, but it requires first-time buyer status. UHC HomeAgain is functionally identical in every way except it has no first-time buyer requirement. UHC Score provides up to 4% for buyers who cannot yet reach the 640 credit threshold, accepting a 620 minimum. Knowing which of the three fits your situation before you talk to a lender is the difference between accessing help and being told you do not qualify.
Salt Lake City's median home price sits around $500,000. The FHA loan limit for Salt Lake County is $524,950, which means FHA financing covers nearly every purchase in the metro. A buyer using FHA at 3.5% down on a $460,000 home needs $16,100 for the down payment plus roughly $9,500 to $11,500 in closing costs, totaling approximately $26,000 to $28,000. UHC FirstHome at 6% of the $443,900 loan amount produces $26,634. That covers the entire down payment with money remaining toward closing costs. For a market this expensive, the math is tight without assistance. With it, near-zero cash to close is a real outcome.
The NoMI option is a piece most buyers skip over because it does not show up as a down payment benefit. On a conventional loan, PMI typically costs $150 to $250 per month on a $450,000 purchase with minimal down. UHC's NoMI option eliminates that cost entirely. Over five years, that is $9,000 to $15,000 in savings that never shows up in the DPA headline number but hits the buyer's monthly budget every single month. Stack NoMI with any UHC DPA product and the combined benefit exceeds what the percentage alone suggests.
The best-informed buyers in Salt Lake City stack UHC FirstHome or HomeAgain at 6% with NoMI for a combined outcome: forgivable down payment assistance plus permanent elimination of PMI. For buyers within Salt Lake City limits at 80% AMI or below, the city's HOME Investment Partnership funds add a third layer. Most buyers never access the full stack because they stop after hearing about one program. The expert approach is to know all three UHC products and how they interact with NoMI before walking into a lender's office.
Quick Answer
Yes. Salt Lake City has strong DPA options through Utah Housing Corporation. The key is knowing which of the three UHC products applies to your situation.
UHC FirstHome: up to 6% of loan amount forgivable, first-time buyers, 640 credit minimum. UHC HomeAgain: identical to FirstHome but no first-time requirement. UHC Score: up to 4%, first-time buyers, 620 credit minimum. All three pair with NoMI to eliminate PMI on conventional loans.
On a $460,000 purchase with an FHA loan: UHC FirstHome at 6% of the loan amount produces $26,634, covering the entire 3.5% down payment and contributing to closing costs. Add NoMI on a conventional loan and the monthly savings compound across the full loan term.
UHC FirstHome, HomeAgain, and Score: Three Products, One System
UHC FirstHome Loan + DPA
The flagship UHC product for first-time buyers. Must use a UHC-approved lender paired with a UHC first mortgage. Forgiveness is proportional over the life of the loan, meaning the DPA forgives as long as you remain in the home, not on a fixed forgiveness clock. On a $443,900 FHA loan after 3.5% down on a $460,000 purchase, 6% produces $26,634. For buyers who qualify, this is the highest-dollar DPA path in Utah. Verify current income limits and purchase price caps at utahhousingcorp.org before applying.
UHC HomeAgain Loan + DPA
HomeAgain is the program most repeat buyers in Utah never hear about. It is functionally identical to FirstHome in every respect: same DPA amount, same forgiveness structure, same income limits, same credit minimum. The only difference is the removal of the first-time buyer requirement. If you have owned a home before and are purchasing a primary residence, HomeAgain is your UHC path. The lenders who tell repeat buyers they have no DPA options are not wrong about FirstHome. They are wrong about HomeAgain. Ask specifically for it by name.
UHC Score Loan + DPA
Score exists specifically for buyers who do not yet hit the 640 credit threshold required by FirstHome and HomeAgain. The trade-off is 4% instead of 6% DPA, but Score provides access when other UHC products are out of reach. If your score is 620 to 639, Score is your path into the UHC system. On a $443,900 FHA loan, 4% produces $17,756. That covers the $16,100 FHA down payment on a $460,000 purchase with $1,656 remaining. Not as strong as 6%, but it gets a buyer into a home who otherwise has no statewide DPA path.
UHC NoMI Option
NoMI is not a down payment program. It is a PMI elimination feature available on UHC conventional loans. On a $450,000 purchase with minimal down, PMI runs $150 to $250 per month. NoMI eliminates this entirely. Over 10 years, that is $18,000 to $30,000 in savings that never appears in the DPA headline number. Stack NoMI with any UHC DPA product: FirstHome 6% covers the down payment, NoMI eliminates the monthly PMI tax. The monthly savings from NoMI often rivals what a buyer would save by putting more money down, and it extends for the entire loan term.
Salt Lake City HOME Investment Partnership
Salt Lake City periodically offers DPA through HUD HOME funds via the city's Housing and Neighborhood Development office. Funding availability changes with budget cycles, so verify open status before planning around this program. Income limit of 80% AMI is lower than UHC statewide programs, but buyers who qualify have access to a potential second layer of assistance on top of their UHC product. Contact the city directly at (801) 535-6150 to check current availability and confirm stacking eligibility with your UHC loan.
How DPA Programs Work in Salt Lake City
Forgivable Loans (FirstHome, HomeAgain, Score)
The DPA amount is forgiven proportionally over the life of the loan, not on a fixed forgiveness clock. As long as you remain in the home as your primary residence, the balance forgives incrementally each year. If you sell or refinance before completing the forgiveness period, you repay the remaining balance from proceeds. No monthly payment on the second during occupancy. The proportional forgiveness structure differs from programs that forgive in a set number of years (like MetroDPA in Denver at 3 years). UHC's approach ties forgiveness to ownership duration without a hard cutoff date.
PMI Elimination (UHC NoMI)
NoMI is a conventional loan feature that eliminates private mortgage insurance. It is not a grant and does not show up in cash-to-close calculations, but it reduces the monthly payment permanently. On a $450,000 loan, PMI runs $150 to $250 per month depending on credit score and down payment percentage. NoMI eliminates this entirely. Because it stacks with UHC DPA products, a buyer can address both the upfront cash gap (through DPA) and the ongoing monthly cost of low down payment (through NoMI) in a single loan structure.
Product Selection Logic
First-time buyer at 640+ credit: UHC FirstHome at 6% is the primary path. Pair with NoMI on conventional. Repeat buyer at 640+: UHC HomeAgain at 6%. Same structure, no first-time restriction. First-time buyer at 620-639: UHC Score at 4% is the only UHC path. All buyers within Salt Lake City limits at 80% AMI or below: check city HOME funds for supplemental assistance. Veterans: HomeAgain pairs cleanly with VA loans (no first-time requirement matches VA's repeat use). Run every scenario before committing to a product.
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This guide is for informational purposes only and is not a commitment to lend. Program availability, terms, and eligibility requirements change frequently. All program details should be verified directly with Utah Housing Corporation at utahhousingcorp.org, Salt Lake City Housing and Neighborhood Development at (801) 535-6150, or an approved lender before making financial decisions. DownPaymentScout is an independent resource and is not affiliated with any government agency or lending institution. Information is believed accurate as of the date shown but is not guaranteed. Last updated April 2026. Program availability changes frequently.