Home Purchase Plus Program

Currently Accepting Applications

All applications must be completed and submitted through neighborly.provo.org under Down Payment Assistance when you scroll down. Each applicant must register in order to be able to sign the application. Each spouse/significant other must be listed as an applicant/co-applicant.

*****You must have a property under contract before you apply*****

If you are a lender, the underwriting criteria can be found Underwriting Criteria here. If you are buying in a Utah County city other than Provo, go to the Loan-to-Own Program.

What is it?

A 0% interest, deferred payment loan to assist first-time home buyers in becoming home owners in Provo City. A first-time home buyer is defined as someone who has had no ownership in a principal residence during the 3-year period ending on the date of the purchase of the property. This includes a spouse or partner (if either meets the above test, they are considered first-time home buyers.

Beginning September 1, 2022, the way that we calculate the amount a person can receive changed. Qualified applicants may receive the amount of down payment required by their mortgage type (5% for conventional or 3.5% for FHA), plus estimated closing costs, minus the $1,000 an applicant is required to put down, PLUS another 5% or 3.5% (depending on mortgage type) capping to $40,000. As an example, on a $350,000 home using a conventional mortgage, a qualified applicant can receive $17,500, plus estimated closing costs (from your Loan Estimate), minus $1,000, PLUS an additional $17,500, capping at $40,000. With closing costs of $6,000, this applicant could receive $40,000. These funds can be used for down payment, closing costs, and/or rate buy down. Only fixed-rate first mortgages are allowed.

You must be able to put down $1,000 of your own money. Cannot get any money back at closing, including Earnest Money.

No payment is due as long as the applicant(s) continues to own and live in the home as their primary residence. Once the home is no longer the primary residence, the loan is due and payable in full.

If the home is sold or vacated within two years of purchase, a $5,000 pre-payment penalty will be applied.

Who Qualifies?

Applicant must qualify for a first mortgage through a lender of their choice(see underwriting criteria for ratio requirements). Both spouses/partners are required to be on our loan even if they are not on the first mortgage and must have a qualifying credit score. No co-signers who will not be owner-occupants are allowed.

Applicant must be income eligible (see income chart) (effective June 1, 2024). Must be on current job for six months. Income is calculated as a projected income based on the last three month's of pay stubs using the actual hours worked.

Single individuals may qualify for loans on a maximum two-bedroom house.

Minimum mid-score of 650 and other RDA underwriting criteria. Must meet debt capacity requirement.

Applicant's liquid assets cannot exceed $15,000 up to time of closing.

Applicants must take "Pre-Home-Ownership Counseling" offered through Community Action or NeighborWorks. Community Action can be reached at 801-691-5200 or 815 S. Freedom Blvd. in Provo. NeighborWorks can be reached at 801-375-5820 or 1031 W. Center Street, Suite 302, Orem, UT 84057. We also accept the following online course only: https://extension.learn.usu.edu/browse/home-buyer/courses/home-buyer-education-2022. No other online course will be accepted.

All household members over the age of 18 must pass a background check.

What Housing Qualifies

Purchase price of the home may not exceed HUD limitations which currently is $551,000 (effective September 2023)for existing and new homes.

Property may be a single-family home, a home with a legal-accessory apartment, one half of a twin home or town home, or a condo.

Home may not be occupied, or have been occupied, by renters within six months to the date of contract who would be displaced by the purchase.

Fair Housing

One of the privileges of living in the United States is the right to freely choose where you will live.

Utah and Federal Fair Housing Acts protect your right to select housing without discrimination based on race, color, national origin, religion, sex, familial status or your source of income.

IT IS UNLAWFUL TO:

Refuse to rent, sell or negotiate for housing; or
Make housing unavailable or deny that housing is available; or
Set different terms, conditions or privileges for the sale or rental of housing based on race, color, national origin, familial status, disability, sex or religion; or
Deny or make different terms or conditions for a mortgage, home loan, homeowners insurance or other real-estate related transactions.

WHAT HOUSING IS COVERED?

Single-family homes owned by private persons when a real estate broker and/or discriminatory advertising is used to rent or sell the home.
Single-family homes not owned by private persons (such as corporation or partnership) even if a broker is not used to rent or sell the home.
Multi-family dwellings with five or more units, including rooming houses; and
Multi-family dwellings with four or less units, if the owner does not live in one of the units.

WHAT HOUSING IS NOT COVERED?

The law does not apply to non-commercial housing run by religions organizations and private clubs that limit occupancy solely to members.

If you feel you have been discriminated again in the purchase of your home, please visit our Fair Housing Overview document which has a link where you can file a complaint.