Did you hear about the $50M new bill Utah passed to help first-time buyers? It was decided some of the State’s “extra” money would be used to help buyers get into a newly constructed home. We are still waiting for the details, but in general this is what is known.
The bill signed into law is “S.B. 240 First-time Homebuyer Assistance Program.” It created a new $20,000 grant to provide 2,375 new homebuyers support for the purchase of a new home. For this grant, there is no repayment requirement unless the house is sold or refinanced.
It does not go into effect until July 1, 2023, so not all the qualification details are known, but it will be administered by the Utah Housing Corporation and the money can be used for down payment, closing costs, reduction in mortgage interest rate, or a combination of these expenses. You will also have to use a qualified lender apply for the grant.
Another likely limitation will be a cap on the price of home, as one of the other goals of this program was to incentivize builders to invest in more affordable housing. It hoped it will keep construction moving in Utah over the next few years to fill some of our overall shortage in housing units.
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