Down Payment Assistance
The Down Payment Assistance (DPA) program administered by Community Development Corporation of Utah is federally funded and is to be used to help income-eligible first time homebuyers purchase single family residences. Funds can only be used for closing and/or down payment costs. There are a limited number of loan/grants available each year and qualified applicants will receive their financial award on a first come, first served basis.
Cities Administered by CDC Utah
Salt Lake City, Kearns, Magna & Murray. Availability is shown in the box at the right.
- Household income cannot exceed 80% of Area Median Income (AMI), as per federal guidelines
- Household income includes ALL income earned by ALL adults over the age of 18 living in the home. If you make less than the guidelines listed below you are eligible to apply:
Household Size / Maximum Yearly Household Income*
1 Person / $39,950
2 Persons / $45,650
3 Persons / $51,350
4 Persons / $57,050
5 Persons / $61,650
6 Persons / $66,200
7 Persons / $70,750
8 Persons / $75,350
*80% of Median Income in the Salt Lake County Metropolitan Statistical Area (MSA), Revised by HUD effective December 1, 2011.
- Maximum debt-to-income ratio is 45%*
- Maximum sales price: $230,000
- Total down payment at closing (with DPA included) cannot exceed 10%
- Mortgagees must comply with FHA Fees Guidelines
- Applications are first come, first served. No waiting lists.
*Income & Debt Ratio Calculation Note: We do not "gross up" non-taxable income, such as Social Security, when determining household income or calculating debt ratios. We simply take the full amount awarded before any deductions.
| City | DPA Amount | Repayment |
| Salt Lake City, Magna & Kearns | **Up to 6% (Not to exceed $10,000) | 100% forgiven after 15 years |
| Murray | $5,000 | 50% forgiven after 15 years |
**Actual DPA award amount is based on individual need & determined on a case-by-case basis.
Process & Timeline: Applicants must be under contract (accepted offer) in order to apply. After submitting a complete application, notification of approval or denial will be provided within 2-3 business days. If approval is given we will draft a Letter of Commitment for the buyer(s) to sign. After we have a signed Commitment we can typically be ready to close in 30-45 days depending on the volume of applications in process. Buyers must complete a HUD-approved Home Buyer Education course before closing but can apply for DPA before taking the class.
Property Address Search: If you are unsure whether or not the property you are considering is in an elibible area to use the DPA from CDC, use the following link to look up the address: http://maps.slco.org/website/nbrhood/viewer.htm. You can also contact the administrator (info below) if you have a question of whether or not a particular property lies within eligible boundaries.
Short Sales: In order to submit a DPA application on a short sale property you must have 3rd party approval on the purchase price.
Non-occupant Co-borrowers: First-time buyers who will have non-occupant co-borrowers may still qualify for DPA. Income from non-occupant co-borrowers will not be taken into consideration when determining eligibility based on income & debt ratios.
HUD Homes: If the home being purchased is owned by HUD, the Seller Affidavit does not need to be submitted with the application.
Credit Scores: There is no credit score requirement to qualify for DPA. The credit report submitted with the application is only used to calculate the debt ratio.
Repayment: No monthly payment is required & no interest accrues on any DPA given. DPA is paid back when (and if) a triggering event occurs, such as the homeowner sells the home, transfers title or refinances to take out equity. If the amount owed is partially forgiven (e.g. $2,500 in Murray instead of $5,000 after 15 years), the remaining balance does not become due at that time—it would be paid back when a triggering event occurs, such as those already mentioned.
Down Payment Assistance Applications
Click here for a copy of CDCU's Down Payment Assistance Flyer
Summary of Areas with Down Payment Assistance Grant Programs
Salt Lake City, Magna, Kearns & Murray
Jay Bladen
(801) 994-7222 ext. 204
www.cdcutah.org Contact Jay
West Jordan City
Chuck Tarver (801) 569-5062
www.wjordan.com
West Valley City
Matt Simmons (801) 963-3369
www.wvc-ut.gov/grants
Ogden City
Cheryl Hurley (801) 629-8906
www.ogdencity.com
Davis County
Mary Swanstrom (801) 939-9198
Weber County
Weber County Housing Authority
801-399-8691
Tooele County
Carole Bush (435) 882-7875 x123
Utah County
(801) 852-6160
www.LoanToOwn.net
www.housing.provo.org (Provo)
Box Elder, Cache, or Rich Counties
Dolores (435) 752-7242
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Dave (435) 753-1112 x104 (Logan)
www.nnhc.net
Hurricane City
Toni (435) 635-2811 x118
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
St. George City
Darren James (435) 673-3548
www.FiveCounty.utah.gov
