Stop Renting While You Save — Down Payment Grants That Are Completely Forgiven
Saving 5–20% for a down payment while rent climbs every year is one of the biggest reasons Utah renters stay renters longer than they'd like. We help buyers close that gap with down payment assistance programs structured as grants — money that is completely forgiven, not a loan you quietly pay back over time and not a second mortgage sitting behind your first.
How the Forgiveness Works
Once you meet the program's basic requirements (typically living in the home as your primary residence for a set period), the assistance is yours. No balloon payment. No surprise lien showing up when you go to sell.
Most programs are structured one of two ways:
Immediately forgiven at closing
The assistance is granted and no further action is required.
Forgiven over time
Forgives in full after you've lived in the home for a defined period (often 3–5 years), assuming you don't sell or refinance out of the program early.
What This Looks Like in Practice
Say you're purchasing a $425,000 home and need 5% down — that's $21,250 out of pocket. A forgivable grant program could cover some or all of that, meaning you walk into homeownership with far less cash drained from your savings, while keeping an emergency fund intact.
$21,250
5% down on a $425,000 home — potentially covered by a grant
Who Typically Qualifies
First-time buyers (in many programs, “first-time” simply means you haven't owned a home in the past 3 years)
Buyers within program income limits, which vary by household size and county
Buyers purchasing a primary residence (investment properties don't qualify)
Buyers who meet minimum credit score requirements — we'll tell you exactly where you stand
How Assistance Layers With Your First Mortgage
Down payment assistance never stands on its own — it stacks on top of a standard first mortgage. That means the first loan you choose still drives your rate and payment, while the grant quietly reduces what you need at closing.
Conventional
Pair a 3–5% down conventional loan with a grant to minimize cash out of pocket.
FHA
A common combination — FHA's 3.5% down plus a forgivable grant for closing costs.
VA
Already zero down for eligible veterans; grants can instead cover closing costs.
USDA
Another zero-down option where assistance can chip in toward closing costs.
Down Payment Help That Fits Utah Buyers
Assistance programs aren't one-size-fits-all — eligibility, award sizes, and forgiveness terms shift based on where you're buying and the state and local housing finance agencies administering the funds. Rather than hand you a generic answer, we match your specific household and target area to the program that actually fits.
Award sizes and income limits vary by county and household size — Utah County and Salt Lake County can differ meaningfully.
Most programs require the home to be your primary residence; second homes and investment properties are excluded.
Some programs include closing-cost assistance on top of the down payment grant, reducing what you bring to the table even further.
Frequently Asked Questions
Do I have to pay this money back?
No — once program requirements are met, the funds are forgiven, not repaid.
Is this the same as a “silent second” loan?
No. A silent second is a loan you eventually have to repay, often when you sell or refinance. True grant forgiveness programs do not require repayment once terms are satisfied.
Can I combine this with an FHA, VA, USDA, or conventional loan?
Yes — down payment assistance is typically layered on top of one of those first-mortgage programs, not used on its own.
What if I sell before the forgiveness period ends?
Depending on the specific program, you may owe a prorated portion back. We'll walk you through the exact terms of the program you qualify for before you commit.
Are there programs specific to Utah or Utah County?
Yes — state and local housing finance agencies administer several programs with rules and funding that change over time. We'll identify which currently available programs match your county, income, and purchase price.
How much assistance can I actually receive?
It varies by program — some offer a flat dollar amount, others a percentage of the loan amount or purchase price. We'll show you the exact figure you qualify for, not a vague range.
See What You Qualify For
Eligibility takes just a few minutes to check — income, credit, and the property you're considering are the main factors.
Check My Down Payment Assistance Eligibility