New Homeownership Assistance Initiative Soon to Debut in Davis County!

FARMINGTON, Utah – Marking a significant stride toward affordable housing, Davis County, Utah’s third-most populated region housing around 11% of the state’s populace, is gearing up to introduce a transformative Homeownership Assistance Program. This initiative is tailored to assist low-to-moderate-income families in navigating the path to homeownership.

Recent trends from the Federal Reserve Economic Data paint a challenging picture. The national average for 30-year fixed-rate mortgages saw a jump from 3.22% in January 2022 to a whopping 6.48% in the following year, highlighted Chanel Flores, Davis County’s economic development director. The escalating interest rates, alongside persistent inflation, spurred the Davis County Commission to champion this cause, devising a strategy to make housing more accessible and affordable.

The Homeownership Assistance Program stands out with its substantial offering. “Qualified homebuyers can avail themselves of a generous assistance loan of up to $50,000,” said Flores. This loan is versatile, catering to diverse needs such as down payment assistance, principal reduction, or even a substantial interest rate buy-down. Prospective homeowners can strategically distribute the loan amount to cover principal reduction, a permanent interest rate buy-down (maximum of $10,000), or address up to 50% of mandatory down payment and closing costs.

However, this isn’t Davis County’s maiden venture into homeownership assistance. Past programs offered benefits ranging from $5,000 to $10,000. But Flores pointed out that these previous efforts didn’t gain much traction among residents. The pressing need for such a program becomes evident when examining Davis County’s Assessor’s 2023 Annual Report. The median home value in 2023 registers at $489,000, marking a decline from $510,000 in 2022. Furthermore, the current median home sale price hovers around $525,000, with approximately 230 homes available under $500,000 as per Zillow’s insights.

Financially backing this ambitious initiative is the community development block grant, complemented by additional funds via the American Rescue Plan Act. “The total war chest for this program stands close to a substantial $1.8 million,” elaborated Flores. Potential beneficiaries can gauge their eligibility based on the gross income qualifications threshold for 2023, which scales from a 1-person household’s $59,600 to an 8-person household’s $112,350. This program is also synergistically designed to dovetail with other state and local homeownership assistance schemes.

Davis County Commissioner Bob Stevenson emphasized the broader vision behind this initiative. “Owning a home is an integral facet of the quintessential American dream. Our mission is to nurture this dream, ensuring that our community members, when they land jobs in our region, also have access to comfortable homes.”

However, the program incorporates a forward-thinking repayment model. While these loans require no immediate payments, they’ll eventually be repaid to the county with an added 1% interest when the property is sold or refinanced for reasons outside the program’s ambit.

Cody Steck, a seasoned real estate agent serving the regions of Salt Lake, Utah, and Davis counties, lauds the sustainability and cyclical benefit of this model. “When repaid, the county can rejuvenate the funds, extending assistance to another family, thereby perpetuating the cycle of support,” Steck remarked.

This strategic move by Davis County beckons a brighter future, ensuring that the dream of homeownership remains accessible, even in turbulent times.