SALT LAKE CITY—For first-time homebuyers, it can be difficult in this market to fulfill the dream of owning a home. With the passage of SB240 in the 2023 Legislative Session those buyers could get the help they need.

Through the First-time Homebuyer Assistance Program, qualifying families can receive a loan of up to $20,000 to buy down interest rates, apply funds toward a down payment or pay closing costs on a first home. Applications for the program started July 11 and funding will be available to Utahns on or after July 25.

“As someone concerned we are losing our middle class, my goal is to help Utahns live the American dream and build equity for their future,” said Senate President J. Stuart Adams. “It’s imperative that we make homeownership possible in our state. I am excited for Utahns to use the program to get out of the apartments and into homes.”

The $50 million allocated by the legislature for the program is estimated to help 2,400 families purchase homes. Those who have not owned a home in the previous three years and have lived in Utah for at least one year prior to closing may be eligible to apply for the First-time Homebuyer Assistance Program through the Utah Housing Corporation, a release said.

Buyers must purchase a home up to $450,000 that is either a new build or has never been lived in to qualify for the loan. The program applies to new construction, “which encourages builders to construct affordable homes while also helping address the state’s housing shortage,” the release said.

The loan will not require a monthly payment and will have a 0% interest rate. Recipients of the program will pay back the loan amount or a portion, subject to program requirements, to the Utah Housing Corporation if they either sell or refinance their home. The funds are then rolled back into the program for other Utahns to use.

Funds will be on a first-come-first-served basis. For more information about the program and how to apply visit https://utahhousingcorp.org/homebuyer/programs/sb240.