Today’s Utah housing market looks very different than it did 10 years ago. In the past, organizations have helped first-time and other homebuyers through education, financing, and down payment assistance. This report examines each of these program types and the valuable support for prospective homeowners that is currently available.
However, in Utah’s current market, programs that modestly lower monthly payments or modestly increase savings are unlikely to meaningfully expand homeownership on their own. That takes us to models that directly reduce purchase prices, such as well-crafted community land trusts and shared-equity mortgage programs in partnership with public and nonprofit organizations. This report also examines each of these program types, which are perhaps better aligned with today’s cost realities.
Reports Highlights
- Utah’s barriers to homeownership seem to be increasing, particularly given the rapid increase in housing costs over the past several years.
- Homebuyer education is shown to help prospective homebuyers beyond simply understanding the purchasing process.
- Various government-backed mortgages are widely available to Utahns, particularly first-time homebuyers, which often require smaller down payments.
- Down payment assistance has a long history and storied success in the loans and grants that help people achieve their homeownership goals.
- Where there is a place for education, financing, and down payment assistance, shared equity programs are perhaps more necessary in Utah’s high-priced market.
- In the realm of shared equity, “fair share” home appreciation mortgages are more favorable than typical models, due to greater benefits and far lower costs.