Buying a home in Sandy can feel out of reach if the down payment is holding you back. If you only know about Utah Housing Corporation, you might be missing out on local help that could make your numbers work. You have more options than you think, and many are designed for first-time and moderate-income buyers in Salt Lake County. In this guide, you’ll learn where to start, who to call, how the programs work, and how to avoid common pitfalls so you can move forward with confidence. Let’s dive in.
Start here: your first 4 calls
1) HUD-approved housing counselor
A HUD-approved counselor should be your first stop. A counselor will screen you for all active programs that serve Sandy, verify eligibility, and issue education certificates many programs require. Use HUD’s find a housing counselor tool to locate agencies serving Salt Lake County.
What to ask:
- Which down payment programs serve Sandy buyers right now?
- What are the income and price limits for my household?
- Which programs can I combine with a Utah Housing Corporation loan?
- What documents do I need to gather, and do you help with applications?
2) Community Development Corporation of Utah (CDCU)
CDCU is a local nonprofit and community lender that supports buyers with counseling, education, and connections to down payment funds. They often work with first-time and lower-to-moderate income buyers across Salt Lake County. Ask about any second-mortgage products, grants, or referrals they can provide.
What to ask:
- Do you offer down payment assistance or refer to local DPA funds?
- Are your homebuyer education classes HUD-approved?
- What are your eligibility criteria and timelines?
- Which lenders do you partner with for underwriting?
3) Salt Lake County Housing & Neighborhood Development (HND) and Sandy city housing
County and city offices may administer HOME-funded down payment assistance and other local programs that serve Sandy residents. These funds can help with down payment and closing costs and often require income limits and owner-occupancy. Ask about current funding windows and deadlines so you can match your home search timeline.
What to ask:
- Are there active down payment programs for Sandy buyers right now?
- What are the income and purchase price limits?
- Is HUD-approved counseling required, and from which providers?
- How long are funds reserved after approval?
4) Your lender or mortgage loan officer
You need a mortgage that pairs well with the assistance you plan to use. Your lender will confirm which DPA programs they accept, how lien positions are handled, and whether your loan type is compatible. Ask about timing so preapproval and DPA approvals line up with your offer.
What to ask:
- Which DPA programs do you accept and underwrite?
- Can assistance cover both down payment and closing costs?
- Do you allow deferred second mortgages or forgivable grants?
- Is my preapproval contingent on DPA approval timing?
Know your assistance types
Forgivable grants
These are grants that are forgiven over time if you live in the home as your primary residence. The forgiveness schedule and occupancy period vary by program. Always review the time-based forgiveness rules before you commit.
Deferred second mortgages
These are no-payment loans recorded as a second lien. You typically repay when you sell, refinance, or transfer the home. Your lender must accept the lien position and terms, so confirm early.
Repayment second mortgages
Some programs offer low-interest second loans with small monthly payments or deferred interest. Understand how this affects your monthly budget and debt-to-income ratio.
Matched savings accounts
Individual Development Accounts or similar matched savings programs help you save a set amount, then match your savings for your down payment. These often require counseling and class completion.
Closing cost grants
Smaller grants may cover appraisal, title, and other fees. Ask if they can be combined with other down payment sources.
HOME program funds
Counties and cities often use federal HOME funds to offer down payment and closing cost help. You can learn more about how these programs work from the HOME Investment Partnerships Program overview, then confirm current local rules with Salt Lake County HND.
Employer and lender programs
Local employers, credit unions, and banks sometimes offer grants or low-interest loans for employees or customers. Ask your HR department and local lenders if any assistance is available and whether it can be combined with other programs.
Eligibility and documents to expect
Most programs follow common guidelines, even if details differ:
- Income verification: recent pay stubs, W-2s, and tax returns. Many use area median income limits.
- Asset verification: bank statements, retirement account snapshots, and gift letters if applicable.
- Homebuyer education: a certificate is often required, typically from a HUD-approved provider.
- Credit and underwriting: some programs have minimum credit scores or allow exceptions with counseling.
- Property rules: primary residence, purchase price limits, property type limits, and occupancy periods.
Stacking aid with your loan
Many buyers look to combine assistance sources. Some programs can be paired with Utah Housing Corporation financing, while others cannot. Review stackability with each program manager and your lender, and confirm whether combined aid will change your mortgage qualification.
Key coordination points:
- Your lender must accept the combination and document lien positions correctly.
- HOME-funded programs may include affordability periods and recapture rules.
- Added assistance could affect debt-to-income calculations, so share details with your loan officer.
- For state program details and to confirm potential combinations, review the Utah Housing Corporation site and discuss with your counselor and lender.
Timelines and funding windows
Down payment programs often run on limited funding cycles. Application windows can open and close quickly, and approvals must be in place before closing. Ask when funds are reserved, how long the reservation lasts, and whether expedited processing is possible if you go under contract.
Tips for timing:
- Complete HUD-approved counseling early so you are pre-qualified for multiple programs.
- Get lender preapproval and share all planned DPA details up front.
- Align contract deadlines with DPA processing time, and build in contingencies when needed.
Common pitfalls and how to avoid them
- Assuming funds are guaranteed. Always verify that a program is currently accepting applications and confirm expiration dates.
- Missing counseling requirements. Complete HUD-approved classes early and save your certificate.
- Overlooking lien position rules. Some lenders will not allow certain second liens. Check with your lender before you apply.
- Contract timing mismatches. DPA approvals can lag behind loan or seller deadlines. Plan for processing time and ask about expedited options.
- Skimming past recapture rules. Read forgiveness schedules, resale restrictions, and repayment triggers before signing.
A simple Sandy buyer checklist
- Step 1: Schedule an intake with a HUD-approved counselor using HUD’s counselor search. Bring ID, pay stubs, and recent bank statements.
- Step 2: Get preapproved and tell your lender you plan to use down payment assistance; ask which programs they accept.
- Step 3: Contact CDCU and ask about DPA options, education classes, and lender partners.
- Step 4: Contact Salt Lake County HND and Sandy city housing to confirm current HOME or city assistance availability.
- Step 5: Gather required documents and complete all education or counseling classes.
- Step 6: Apply early and coordinate timelines with your lender and real estate agent before you write an offer.
- Step 7: Confirm how funds will be disbursed at closing and make sure all paperwork is complete.
How to validate program info
Start with trusted, official sources and then verify with program managers:
- Use HUD’s find a counselor tool to locate approved local counselors who can confirm active programs in Salt Lake County.
- Review background on HOME-funded assistance from HUD’s HOME program overview, then confirm local details with Salt Lake County HND.
- For questions about pairing state programs with local aid, consult the Utah Housing Corporation website and your lender.
Local partners to keep on your radar
- HUD-approved housing counseling agencies in Salt Lake County. These agencies screen you for all active options and provide required education.
- CDCU. This nonprofit is a go-to for counseling, education, and referrals to down payment funds.
- Salt Lake County HND and Sandy city housing offices. Ask about HOME-funded down payment assistance and any local grants.
- Employers, credit unions, and community banks. Some offer flexible assistance that may move faster than government programs.
Ready to take the next step?
If you are planning a move in Sandy or nearby Salt Lake County, you do not have to navigate down payment assistance alone. Partner with a local, full-service agent who will help you coordinate timelines with your lender, counseling provider, and program managers so your offer is strong and your closing is smooth. If you want a clear plan from preapproval to keys, reach out today and let’s map your options.
Get your free home valuation with Unknown Company.
FAQs
What is the best first step to find non-UHC down payment aid in Sandy?
- Start with a HUD-approved housing counselor using HUD’s counselor search tool; they will screen you for local programs and provide required education.
Which local offices manage HOME-funded down payment help for Sandy?
- Salt Lake County Housing & Neighborhood Development commonly administers HOME funds; confirm active programs and limits directly with the county and Sandy city housing.
Can I combine county or nonprofit assistance with a Utah Housing Corporation loan?
- Possibly. Stackability varies by program and lender; review terms with each program manager, your counselor, and your lender, and check the Utah Housing Corporation site for state program details.
What documents do I need for down payment assistance applications?
- Expect income verification (pay stubs, W-2s, tax returns), asset statements, and a HUD-approved homebuyer education certificate; some programs also have credit or property requirements.
How long does it take to get down payment funds approved?
- Timelines vary by program and funding cycle; ask when funds are reserved, how long reservations last, and whether expedited processing is available to meet contract deadlines.
