SB240 — UP TO $20K
TOWARD A NEW HOME
Utah's SB240 program provides up to $20,000 for first-time buyers purchasing new construction. Unlike every other DPA program in Utah, this is a true grant — no repayment, no second mortgage, no lien on your property. Stack it with UHC and you're looking at up to $44,000 in combined assistance.
✦ Program Overview
What Is the SB240 Grant?
SB240 refers to Utah Senate Bill 240, which created a grant program to make new homes more accessible to first-time buyers while stimulating housing construction statewide. The program is administered through participating lenders and builders.
The critical distinction: SB240 is a true grant. Most down payment assistance in Utah is structured as a second mortgage — deferred or forgivable — that comes due when you sell or refinance. SB240 has no repayment requirement under any circumstances. You own the money outright at closing.
Key Facts
- Maximum grant: $20,000
- Who qualifies: First-time buyers (no ownership in past 3 years)
- Property type: NEW CONSTRUCTION ONLY
- Repayment: None — true grant
- Income limits: Apply (similar to UHC)
- Education course: Required
- Stackable: Yes — with UHC DPA
✦ Legislative Intent
Why New Construction? The Reasoning Behind SB240
Utah has a housing supply shortage. SB240 was designed to address this by incentivizing new construction purchases — giving buyers a financial reason to choose a newly built home over resale.
More Supply
Every SB240 purchase puts money toward a new unit — directly addressing Utah's housing shortage by incentivizing builders to keep building.
Larger Grant
At $20,000, SB240 is the single largest grant in Utah's first-time buyer ecosystem — and the only one with absolutely no repayment obligation.
Builder Warranties
New construction comes with builder warranties (typically 1-year workmanship, 2-year systems, 10-year structural) — fewer surprise repair costs in early ownership.
✦ Program Comparison
SB240 vs. Other Utah DPA Programs
| Program | Max Amount | Repayment | Property Type |
|---|---|---|---|
| SB240 Grant ⭐ | $20,000 | Never — true grant | New construction only |
| UHC DPA | Up to 6% of loan | Deferred or forgivable (7yr) | Any eligible home |
| Salt Lake County Grant | Up to $20,000 | Deferred second mortgage | Any eligible home |
| Davis County Grant | Up to $10,000 | Forgivable after 5 years | Any eligible home |
| Utah County HOME | Up to $10,000 | Deferred second mortgage | Any eligible home |
| Weber County DPA | Up to $7,500 | Deferred second mortgage | Any eligible home |
SB240 is the only program with zero repayment. The tradeoff: new construction only.
✦ Program Stacking
Stack SB240 for Maximum Assistance
SB240 can be combined with UHC's down payment assistance. The combination is the highest assistance ceiling available anywhere in Utah's first-time buyer programs.
New Construction in Utah County
- SB240 Grant: $20,000
- UHC 6% DPA on $400K loan: $24,000
✓ SB240 portion never repaid
New Construction in Salt Lake County
- SB240 Grant: $20,000
- Salt Lake County Grant: up to $20,000
- (verify lender compatibility)
✓ Two grants on same purchase
New Construction + Full Stack
- SB240 Grant: $20,000
- UHC 6% DPA: up to $24,000
✓ Most common stacking combo
✦ Application Process
How to Get the SB240 Grant
Find a Participating Lender
Not all lenders offer SB240. Start with a lender approved for both SB240 and UHC programs. First Home Utah can connect you with the right lender.
Complete Homebuyer Education
Take a HUD-approved homebuyer education course (eHome America, Framework, or NeighborWorks). ~$75–$99, 6–8 hours online. Certificate valid 12 months.
Find a SB240-Participating Builder
Ask builder sales offices if they participate in SB240 or work with SB240-approved lenders. Developments in Saratoga Springs, Eagle Mountain, Lehi, and Syracuse often participate.
Get Pre-Approved Before Signing
Confirm SB240 compatibility BEFORE signing a purchase contract. Once you are under contract, the process mirrors a standard purchase closing.
Close With the Grant Applied
The grant is applied at closing. It reduces your cash needed at the closing table — alongside any UHC DPA you are stacking.
✦ Real Client Stories
What Our Clients Say
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Up to $44,000 in Combined Assistance
New construction + SB240 + UHC DPA is the most powerful assistance stack in Utah. Let's see if your target development participates and whether you qualify.