FARMINGTON, Utah — In less than two weeks, Davis County will roll out a new program aimed at helping low-to-moderate-income families purchase a home.
Davis County is Utah's third-most populated county, containing approximately 11% of the state's total population, according to Chanel Flores, the economic development director with Davis County
Federal Reserve Economic Data shows that the national average for 30-year fixed rate mortgages went from 3.22% in January 2022 to 6.48% in January of this year, Flores said.
Higher interest rates, coupled with inflation, is why Flores says her department was tasked by the Davis County Commission with finding and launching a program to help with affordable housing.
"It's called the Homeownership Assistance Program," said Flores.
Flores says income-qualified families and individuals interested in buying a home can apply for the assistance loan.
"It's $50,000, or up to $50,000, for anything from down payment assistance to principal reduction to interest rate by down," she said.
The loans can be used for any combination of principal reduction, permanent interest rate buy down (up to $10,000), and/or up to 50% of the required down payment and closing costs.
Flores said they have done homeownership assistant programs or down payment assistance programs like this before. She said they ranged anywhere from $5,000 to $10,000 and weren't getting utilized.
According to the Davis County's Assessor's 2023 Annual Report, the median home value in 2023 was $489,000, which is down 4.12% from $510,000 in 2022.
Currently, according to that report, the median home sale price is $525,000.
According to Zillow, there are approximately 230 homes for sale in Davis County under $500,000.
Flores says the program is funded through money set aside from their community development block grant and additional funding coming through the American Rescue Plan Act.
"We have close to $1.8 million," said Flores.
The program has a gross income qualifications threshold for 2023:
- 1-person household: $59,600
- 2-person household: $68,100
- 3-person household: $76,600
- 4-person household: $85,100
- 5-person household: $91,950
- 6-person household: $98,750
- 7-person household: $105,550
- 8-person household: $112,350
The program can also be coupled with other state and local homeownership assistance programs.
"Home ownership is very, very important, is part of the American dream with what we want to have, and so we feel this is important to be able to create these opportunities for people when they get jobs in our area to be able to also find homes," said Davis County Commissioner Bob Stevenson.
The loans will require no payments; however, they will be repaid to the county, with an additional 1% interest, when the home is either sold or refinanced for an ineligible reason.
Cody Steck is a real estate agent with Real Broker LLC. A majority of the clients he serves are in Salt Lake, Utah and Davis counties.
"I think it's a sustainable way to really, you know, put this money out there and provide help to these people, because when that money gets paid back, now the county can go back out there, they can lend that money out again and help another person," said Steck.
The program is slated to begin on Oct. 16, with new funds being released quarterly into next year.
Guidelines for the homeownership program can be found on the county's website HERE.
Applications will be processed on a first-come, first-qualified basis. They must be submitted through the Neighborly online platform. For questions and further inquiries, you can contact Davis County Community & Economic Development at 801-451-3251 or by email at homeownership@daviscountyutah.gov.
