Score Loan First-Time Homebuyer Assistance Programs

Score Loan: The First-Time Homebuyer Secret Utah Locals Are Buzzing About

You found it—the unicorn of mortgages. The Score Loan in Utah takes the sting out of down payments and interest rates for first-time buyers who would otherwise stay renters for years.

Why Talk About Score Loan Now?

Utah’s housing market keeps galloping. Salt Lake City’s median sales price rose roughly 5% last year, according to regional MLS figures, while wages crept up by only half that pace. Enter the Score Loan Utah program: a public–private financing tool backed by Utah Housing Corporation (UHC) that helps bridge that affordability gap.

Table of Contents

1. What Is the Score Loan and How Does It Work?
2. Who Qualifies for a Score Loan?
3. Top Benefits—And One Hidden Perk No One Mentions
4. Step-by-Step Application Roadmap
5. Micro-Story: How the Goldings Closed in 27 Days
6. Does a Score Loan Cover Down Payment and Closing Costs?
7. Is the Utah Score Program Only for Single-Family Homes?
8. Quick-Hit FAQ
9. Ready to Own? Your Next Move

What Is the Score Loan and How Does It Work?

The Score Loan is a 30-year, fixed-rate first mortgage layered with an optional second mortgage for down-payment assistance. Utah Housing Corporation created it to “score” wins for three players:

• You—the first-time buyer who craves stability.
• Lenders—who gain state support that lowers their risk profile.
• The local market—which benefits from broader homeownership.

Instead of chasing separate grants, the Score mortgage bundles everything into one closing. Your primary loan rate runs slightly above conventional, while the second mortgage charges a flat 0% interest for up to 30 years, covering as much as 4% of the purchase price for down payment and fees. Translation: fewer wire transfers, fewer headaches.

Key Mechanics at a Glance

• Term: 30 years, fixed.
• Loan-to-Value (LTV): Up to 96.5% on the first mortgage.
• Second Mortgage: 0% interest, deferred payment.
• Servicing: Utah Housing Corp. retains servicing, so you always know whom to call.

Who Qualifies for a Score Loan?

Eligibility is surprisingly inclusive. Think of it less as an exclusive club and more as a community potluck—bring a qualifying credit “dish,” and you’re welcome.

Core Requirements

• First-Time Buyer Status: No ownership interest in a principal residence during the past three years.
• Minimum FICO: 660, though lenders may overlay higher thresholds.
• Income Limits: Vary by county; for example, Utah County caps household income near $103,000 for a family of three (UHC, 2023).
• Purchase Price Limits: Tied to local median prices; Salt Lake County currently sits around $517,000.
• Occupancy: Must occupy within 60 days of closing and live there as a primary residence.

Rental history counts: The program welcomes applicants lacking a traditional credit depth if they can show 12 months of on-time rent plus utilities.

Top Benefits—And One Hidden Perk No One Mentions

Front-Page Benefits

1. Low Cash to Close: That 0% second mortgage can wipe out most—or all—of your down payment.
2. Fixed Rate Stability: You lock in today’s rate. Tomorrow’s hikes won’t rattle your budget.
3. No Prepayment Penalty: Throw extra principal at the loan when raises or tax refunds arrive.

The Hidden Perk: Energy-Efficient Retrofit Wiggle Room

Many lenders allow you to add up to $6,500 in energy-efficient upgrades to the loan amount. New insulation in a Park City bungalow? Solar panels on a St. George ranch? They can be wrapped into your Score home loan if the improvements meet FHA energy guidelines. Few know this loophole exists; use it to shrink utility bills from day one.

Step-by-Step Application Roadmap

Figuring out the process can feel like translating Morse code in a thunderstorm. Let’s replace that static with clarity.

1. Pick a UHC-Approved Lender

Only approved lenders can originate a Score financing package. UHC’s site lists roughly 40. Choose two, request Loan Estimates, compare fees.

2. Complete Pre-Qualification

Hand over pay stubs, W-2s, bank statements, and permission for a credit pull. A seasoned loan officer can suggest credit tweaks—paying down a $300 card balance can boost a thin file by 15 points in 30 days.

3. Attend a HUD-Approved Homebuyer Class

Plan for a Saturday morning webinar. The certificate is valid for one year and shaves 0.25% off some lenders’ origination fees.

4. Shop Homes That Fit Program Caps

Work with a Realtor who gets the program. Pro tip: Insert a “subject to Utah Housing Corp. Score Loan approval” clause in offers to protect your earnest money.

5. Lock Rate, Final Underwriting, Close

The underwriter double-checks income limits and signs off. You’ll e-sign final disclosures, wire any remaining funds, and receive keys—usually within 35–45 days from application.

Micro-Story: How the Goldings Closed in 27 Days

Meet Maya and Jalen Golding, a newly married couple renting a 600-square-foot basement in Logan. They had $4,200 in savings and wedding gift cards, hardly enough for conventional 3% down. Their Realtor whispered, “Why not look at the Utah Score program?” Skeptical but curious, they called an approved lender on a Tuesday.

By Friday, Maya’s 672 FICO cleared the threshold, and Jalen’s student-loan deferment no longer sabotaged their debt-to-income ratio. They found a $362,000 townhome the next week. Thanks to a 0% second mortgage covering 4% of the price plus closing costs, their out-of-pocket cash dropped to $1,012. They closed in 27 days—two days before their basement lease expired. Today, they host family dinners instead of tiptoeing past a landlord’s curfew.

The Goldings aren’t unicorns. They simply learned to “score” the system.

Does a Score Loan Cover Down Payment and Closing Costs?

Short answer: Yes, often both. The second mortgage equals up to 4% of the first mortgage amount. Let’s say you finance $350,000; you could receive $14,000 interest-free. Lenders may allocate the money first to down payment, then to closing costs like appraisal and title fees. If those costs come in lower than 4%, leftover funds can sometimes prepay mortgage insurance. Check with your lender for specific stacking rules.

Is the Utah Score Program Only for Single-Family Homes?

No. Eligible properties include condos, townhomes, and even 2- to 4-unit residences provided you live in one unit. Multifamily purchasing can turbocharge your financial trajectory: rent from additional units may offset your mortgage, which still qualifies under Score’s underwriting guidelines as long as you meet income and purchase-price caps.

Quick-Hit FAQ

How many times can I use a Score Loan?

Only once as a first-time buyer, but you may refinance through traditional channels later.

Can I combine a Score Loan with Utah’s First-time Homebuyer Assistance (state tax credit)?

Yes. The state tax credit applies separately, and you can layer both benefits if you qualify.

What happens if I sell before 30 years?

The 0% second mortgage payoff comes due at sale or refinance—no penalties, just the principal.

Are gift funds allowed?

Absolutely. Gifts from family, employers, or nonprofits can reduce your cash to close even more.

Does the Score Loan Utah option require mortgage insurance?

Yes, standard FHA or conventional MI applies on the first mortgage until you reach required equity.

Ready to Turn the Key? Here’s Your Next Move

Utah’s mountain vistas and tech-driven job market attract thousands each year. Don’t let escalating prices leave you stranded on the sidelines. A Score Loan could transform today’s rent check into tomorrow’s equity—without draining your savings.

Take action now:

• Browse Utah Housing Corporation’s approved lenders list.
• Schedule a 15-minute discovery call with a UHC-certified loan officer.
• Register for the next virtual homebuyer education class.

Doors don’t stay open forever, and program funds can run dry. Seize the moment, plant roots, and let your new front porch become the launchpad for every adventure Utah offers—from powder mornings at Alta to red-rock sunsets in Moab.