Up to $20,000 for New Construction Homes
Utah Housing First-Time Homebuyer Assistance Program (S.B. 240) — 0% interest, no monthly payments. Funds for down payment, closing costs, or permanent rate buydown on newly built homes up to $450K.
Assistance Amount
Up to $20,000
Interest Rate
0%
Monthly Payments
None
Repayment Trigger
Sale or Refinance
What the Funds Can Cover
Down Payment
Apply toward your required down payment on the new home
Closing Costs
Cover lender fees, title, appraisal, and other settlement charges
Rate Buydown
Permanently lower your mortgage interest rate for the full loan term
Eligibility Requirements
Buyer Requirements
- ✓ First-time homebuyer (no ownership in past 3 years), displaced homemaker, or single parent
- ✓ Utah resident for at least 12 months before closing
- ✓ Must occupy home as primary residence
- ✓ Must use a Utah Housing participating lender
Property Requirements
- ✓ New construction or newly built — never previously occupied
- ✓ Single-family, condo, townhome, or manufactured/modular on permanent foundation
- ✓ Purchase price ≤ $450,000
- ✓ Located in Utah
⚠ Important Restrictions
- • Cannot combine with Utah Housing Law Enforcement or VA grants
- • Limited to first ~2,400 approved applicants (first-come, first-served)
- • Funds are a deferred loan — not a grant. Repayment required on sale or refinance (up to amount received or 50% of equity, whichever is less)
- • New construction only — existing homes do not qualify
How the Program Works
Get Pre-Approved
Work with a Utah Housing participating lender to get pre-approved for a FirstHome, FHA, or VA loan through Utah Housing.
Find Eligible New Construction
Shop for newly built homes in Washington County under $450K. Dan Stewart can help identify qualifying properties.
Apply for SB 240 Assistance
Your lender submits the SB 240 assistance application alongside your mortgage application to Utah Housing Corporation.
Close & Receive Funds
At closing, up to $20,000 is applied to your down payment, closing costs, and/or rate buydown. 0% interest, no monthly payments.
Repay on Sale or Refinance
When you sell or refinance, repay the assistance amount (or up to 50% of equity). Funds recycle to help other Utah buyers.
Layering with Other Programs
SB 240 can be combined with other assistance programs for maximum buying power in Washington County:
+ Utah Housing DPA
Second mortgage up to 6% ($25K max) for down payment/closing costs
+ St. George City Loan
Up to $10K zero-interest city loan (limited funding)
+ REACH Grant
$5K true grant (Feb–Mar application window)
Combined potential: Up to $35,000+ in assistance. Exact stacking rules vary — confirm with your lender.
Connect with Dan Stewart
Ready to see if SB 240 fits your purchase?
Dan Stewart with The Finest Homes @ Red Rock Real Estate helps Washington County buyers navigate Utah Housing programs and connect with participating lenders.
Phone: 435-862-3242
Email: washingtoncountyproperties@gmail.com
Serving: St. George and greater Washington County, Utah
Private 3-minute intake
Build My First-Time Buyer Game Plan
Share planning ranges—not account numbers. Your location is used only to understand the market where you hope to buy and the services that may be available there.
Program details subject to change. Funding is limited and first-come, first-served. Confirm current eligibility, pricing, rates, and repayment terms with a Utah Housing participating lender and Utah Housing Corporation.