The short answer
HomeChoice is a Utah statewide second mortgage of up to $70,000 at 1% fixed interest for 30 years, for homebuyers who have a disability or who have a household member with a disability. The funds sit behind your primary mortgage to lower your overall monthly housing payment — they cannot be used for down payment or closing costs.
Mortgage guidance with Jennifer Reich · NMLS 162239
HomeChoice is funded by the Olene Walker Housing Loan Fund through the State of Utah and administered by Neighborhood Nonprofit Housing Corporation. Although it is often described as down payment assistance, it works differently: the assistance arrives as a low-interest second mortgage layered behind your primary FHA or conventional loan, which reduces your total monthly payment rather than putting cash in hand at closing.
Jennifer has access to this program for her Utah clients. Two things to understand up front: eligibility depends on the disability definition, household income limits, and standard mortgage qualification — and funding is allocated in cycles, so whether funds are available at any given moment needs to be confirmed before you plan around it.
How does the HomeChoice second mortgage work?
HomeChoice provides up to $70,000 per household at a 1% fixed interest rate, fully amortized over a 30-year term with no prepayment penalty. The second lien is subordinated behind your primary mortgage, so your combined monthly housing payment is lower than it would be with the first mortgage alone.
Because the second mortgage reduces the total payment, it can be especially meaningful for fixed-income households. Exactly how HomeChoice layers with your primary loan — and how it affects mortgage insurance and qualifying — is something Jennifer will walk through with your actual numbers.
Who is eligible?
The program serves Utah buyers with a disability, or buyers with a household member who has a disability, as defined by the Americans with Disabilities Act of 1990 or the Fair Housing Amendment Act of 1988. The home must be your primary residence in Utah.
Household income must meet current HUD income guidelines, which vary by household size and county. Borrowers must also qualify for a primary mortgage — with program guidelines including a FICO score of 640 or above and a debt-to-income ratio that does not exceed 45% — and contribute a minimum of $500 toward the purchase.
What are the limits and caveats?
HomeChoice funds apply to the purchase of existing homes in Utah; property eligibility is confirmed during underwriting. This is not cash at closing for down payment or closing costs — plan your cash-to-close separately with Jennifer.
Funding comes from the state in allocation cycles and is first-come, first-served, so availability can change or be fully committed at times. Jennifer will confirm current funding status before you rely on the program, and nothing here guarantees assistance or approval.
Who may want to explore it
- Utah buyers with a disability or a household member with a disability
- Fixed-income households that need a lower total monthly payment
- Buyers whose household income meets current HUD guidelines
Documentation & eligibility
- Documentation supporting disability eligibility under the ADA or Fair Housing definitions
- Household income verification against current HUD guidelines
- Standard primary-mortgage income, asset, and credit documentation
- Minimum $500 borrower contribution toward the purchase
Benefits
- Up to $70,000 per household at a 1% fixed rate over 30 years
- Lowers the overall monthly housing payment behind your primary mortgage
- No prepayment penalty
- Available statewide in Utah for primary residences
Tradeoffs
- The funds cannot be used for down payment or closing costs
- Income limits, credit score, and debt-to-income requirements apply
- Funding is allocated in cycles and may be fully committed at times
- A second lien is recorded behind your primary mortgage
Questions to ask Jennifer
- Is HomeChoice funding currently available?
- Does my household meet the income guidelines for my county?
- How much lower would my payment be with the second mortgage?
- What documentation verifies disability eligibility?
HomeChoice Second Mortgage: common questions
Is HomeChoice really down payment assistance?
Not exactly. The funds cannot be used for down payment or closing costs. HomeChoice provides up to $70,000 as a 1% fixed second mortgage layered behind your primary loan, which lowers your overall monthly housing payment.
Is the $70,000 guaranteed?
No. The assistance is up to $70,000 per household and depends on disability eligibility, household income limits, credit and debt-to-income guidelines, and current program funding — which is allocated in cycles and can be fully committed.
Do I have to buy a specific kind of home?
The program applies to the purchase of existing homes in Utah used as your primary residence. Property eligibility is confirmed during underwriting, so review the specific home with Jennifer before you count on the program.
Utah mortgage guidance
A local conversation. A property-specific plan.
Jennifer serves borrowers in Davis County and Washington County from her Kaysville office. Eligibility depends on your financial profile, the actual property, and the loan program—not simply the city where you buy.
Office: 69 East 200 North, Suite A, Kaysville, UT 84037. Programs and terms are subject to underwriting and may change.