Down-Payment and Closing-Cost Assistance - Currently Accepting Applications

0% Interest, deferred loan for low and moderate-income households - You must have a property under contract before you apply

Who Qualifies?

You must be qualified with a bank or other financial institution for the first mortgage.
The total income of all family members over 18 must be less than the Income Limits (effective June 1, 2024). Income is calculated based on the last three month's pay stubs using the actual hours worked and projecting for a year.
Must be on current job a minimum of six months.
Must not have owned a home in the last three years.
Must have a mid credit score above 650 with no unsatisfied judgments or collections.
Must meet debt capacity requirement.
Both spouses/partners are required to be on our loan (regardless of whether they are on the first) and must meet the credit requirement. No co-signers who will not be owner-occupants are allowed.
Liquid assets cannot exceed $15,000 at time of closing.
All household members over 18 must pass a background check.

What Housing Qualifies?

As of July 1, 2020, all cities are eligible except Eagle Mountain, Fairfield, Woodland Hills, Highland, and Provo (Provo has their own program, see here).
Purchase price of the home may not exceed HUD limit which currently is $551,000 (effective September 2023) for both existing and new homes.
Can be a single-family home, one half of a twin home, a condominium or town home.
Must not be currently occupied or have been occupied by renters within six months to the date of contract, who would be displaced by the purchase.

What We Need From You

All applications should be completed and submitted at neighborly.provo.org under Down Payment Assistance when you scroll down. Each applicant must register in order to be able to sign the application. Both spouses/significant others must be included as an applicant.
Copies of Federal Income Tax returns for the last three years (1040's).
Copies of pay stubs for the last three months for all working household members over 18.
Copies of bank statements for the last three months.
Original verification that all household members are US citizens PLUS social security cards. Verification can be birth certificate, current US-issued passport or Permanent Resident Card.
Schedule "Pre-Home Ownership Counseling" class through either Community Action (801-691-5200) or NeighborWorks (801-375-5820). Applicants may take only 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. Class must be taken before this loan can be closed.

What are the Terms?

0% interest, deferred loan. No payment is due as long as the applicant(s) continue to own and live in the home as their primary residence.
Balance is due upon sale or when property ceases to be owner occupied.
You must be able to put down $1,000 of your own money. Cannot receive any money back from closing, including Earnest Money.
$5,000 penalty if sold or vacated within two years of closing.
See Policies and Procedures for additional details.

How Much Can I Qualify For?

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.
This loan can be used for down payment, closing costs minus prepaids, interest-rate buy downs. Only fixed-rate first mortgages allowed.
Your monthly expenses will be evaluated for affordability limits. For qualifying ratios, see underwriting criteria.
Our normal loan processing time is approximately one week to determine income eligibility.
From that point, we will work with your lender to complete the process which could take two to three weeks.

Fair HousingOne 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 document which has a link where you can file a complaint.