The short answer: usually one program
The idea that you can pile several down payment assistance programs onto one purchase is one of the most common pieces of bad information in Utah real estate. It makes for an appealing headline. It rarely survives contact with a lender.
In practice, most buyers use one program. That is not a disappointment, because the individual programs in Utah are large. One program can be worth $60,000.
Why combining is harder than it sounds
- Lien position. Every assistance program records a lien behind your first mortgage. The second program has to agree to sit in third position, and many program rules simply do not allow it.
- Program restrictions. Most city and county programs restrict what other subordinate financing can sit alongside them. That restriction is written into the loan documents, not left to the buyer.
- Lender overlays. Even where two programs permit each other on paper, the lender has to be approved for both and willing to close a purchase with two subordinate liens. Many are not.
- Combined loan-to-value. Total financing still has to fit within the limits on the first mortgage. Assistance that pushes you past those limits does not get approved.
- Funding cycles. City and county programs run on limited annual funding with application windows. Two programs both having money available in the same month is its own hurdle.
What each program is worth on its own
| Program | Structure | Maximum | Where |
|---|---|---|---|
| Provo Home Purchase Plus | 0% deferred loan, up to 50% forgivable | Up to $60,000 | Provo city limits |
| Davis County Homeownership Assistance | 1% interest, no monthly payments | Up to $50,000 | Davis County |
| Utah County Loan to Own | 0% deferred loan, up to 50% forgivable | Up to $40,000 | Most of Utah County |
| UHC Down Payment Assistance | Second mortgage | Up to 6% of the first mortgage, capped at $27,500 | Statewide |
| Eagle Mountain Mortgage Assistance | 0% loan, forgiven over 15 years | Up to $25,000 | Eagle Mountain city limits |
| Own in Salt Lake County | Deferred second mortgage | Up to $20,000 | Salt Lake County |
| SB240 New Construction | 0% deferred loan with shared-equity recapture | Up to $20,000 | Statewide, new construction under $450,000 |
| Own in Ogden | 0% deferred loan, tiered by occupation | $10,000 to $20,000 | Ogden city limits |
| Weber County DPA | Deferred second mortgage | Up to $7,500 | Weber County |
Note that the largest numbers on this list come from single programs. A Provo buyer using Home Purchase Plus alone has more assistance than any realistic combination elsewhere.
The one pairing that is actually documented
Utah Housing Corporation states in its own program FAQ that SB240 funds can be combined with UHC down payment assistance, with the SB240 lien recording in third position. That is the rare case where a state agency has put the combination in writing.
Even there, it is not automatic. Both carry repayment terms, the combined financing still has to fit the loan-to-value limits, and your lender has to be willing to close it that way. Confirm it in writing for your specific file before you count on it.
What does not combine
- Two UHC assistance products. You get one UHC first mortgage and one UHC DPA.
- Two county programs. You are buying in one county.
- A city program and a county program in most cases, since the city program usually restricts other subordinate financing.
- SB240 on a resale home. SB240 is new construction only.
- SB240 with UHC's veteran or law enforcement grants. Utah Housing rules this out explicitly.
What to do instead
- Find the largest program you actually qualify for, which is usually decided by the city you are buying in rather than by choice.
- Get pre-approved with a lender approved for that specific program. Not every lender is.
- Complete the HUD-approved homebuyer education course early, since every program requires it and the certificate takes time.
- Ask your lender to confirm in writing what other assistance, if any, can sit behind the program you are using.
- Do not write an offer assuming a combined total. If a combination falls through after you are under contract, the shortfall is yours to cover.
The bottom line
Plan around one program and treat anything additional as a bonus your lender confirms in writing. The buyer who applies for the right $40,000 program and gets approved is in far better shape than the buyer who counted on $60,000 from three programs and discovers at underwriting that only one of them will close.