First-Time Homebuyers in Utah: Is the State’s Program Meeting Needs?
SALT LAKE CITY — The housing market is currently more challenging than it has been for years, featuring sky-high prices and steep mortgage rates. However, for Aubrey Sanders, a 25-year-old insurance specialist based in Salt Lake City, the dream of homeownership is about to become a reality in Spanish Fork.
“Truth be told, just contemplating the idea of plunging into today’s housing market is enough to make anyone’s stomach churn,” Sanders admits.
Luckily, Sanders and her spouse have found a financial ally in Utah’s newly established first-time homebuyer assistance program. The initiative was approved by the state’s Legislature earlier this year and officially kicked off in July. This game-changing program provides first-time homebuyers with up to $20,000, which they can allocate toward their down payment, and closing costs, or even use for reducing their loan’s interest rate.
However, there are some stipulations to consider. For one, the program only applies to new construction homes valued at $450,000 or less. This has proven to be a significant challenge, especially since ten counties across Utah currently have median home prices that exceed this amount.
Another catch is the repayment requirement: the financial aid offered by the program has to be paid back when the home is eventually sold or refinanced.
Who Stands to Benefit from This Initiative? Since its inception, Utah’s first-time homebuyer program has already distributed a staggering $6 million in assistance, with millions more earmarked for future qualified applicants. According to data supplied by the Utah Housing Corporation, which oversees the program, eligible buyers have an average income hovering around $90,000 and are typically purchasing homes priced at approximately $377,000.
Senate President Stuart Adams (R-Layton), the legislative force behind the program’s creation, remains optimistic about its impact. He claims that the program’s primary aim was to encourage construction companies to develop more affordably-priced housing.
“In my discussions with various builders, it’s evident that the program is pushing them to rethink and adjust their construction plans,” says Adams in an interview with KUTV 2News.
This sentiment is echoed by Dallin Corbridge, one of the proprietors of Sego Homes, a Utah-based construction company. Corbridge reveals that in response to the new first-time homebuyer program, his company is modifying its product offerings to better align with the initiative’s guidelines and requirements.
In a housing market as turbulent as today’s, Utah’s first-time homebuyer program offers a glimmer of hope for those daring to dream of owning their own home.
