What is it?

A 0% deferred loan to assist families become homeowners in the Provo Pioneer Neighborhoods.

Who qualifies?

1. Must qualify for first mortgage through Neighborhood Housing Services (NHS) of Provo for primary lending.   (NHS may be contacted at (801) 375-5820)
2. Families are program priority, and single individuals may qualify for 2-bedroom house size only.

How much can you qualify for?

1. The maximum loan is 10% of the purchase price or $17,870 (whichever is less).
2. You must be able to put down $1,000 of your own money.
3. Your monthly expenses will be evaluated to ensure they are within affordable limits.  RDA Underwriting Criteria Applied.

     What housing qualifies?

1. Ordinarily, the home must be located within the  Maeser, Franklin, Dixon, South Joaquin, or Timp Neighborhoods. (See map).   
2. Property can be  single family home, a home with a legal accessory apartment, one half of a twin home, or a townhouse.
3. Home may not be currently occupied by renters who would be displaced by sale.
4. The home must be available through Neighborhood Housing Services' purchase/rehab/resell program.
5. Purchase price may not exceed $232,305.

     What are the terms?

1. Loan terms are a 0% interest, deferred payment loans. No payment is due as long as the applicant continues to own and live in the home as their primary residence.
2. Any money you spend on home improvements during the first five years you live there may be credited against your outstanding balance on the deferred loan ($5,000 maximum).
3. A restrictive covenant will be recorded to ensure 15 year owner occupancy.

   What you need to do to qualify.

1. Return a completed and signed application. 
2. Attach copies of Federal Income Tax  returns (1040’s) for the past three years.
3. Attach copies of pay stubs for the last three months for all working household members over 18 years of age. (minimum time on current job is 6 months and cannot be on probation)
4. Attach Certificate of Completion of “Pre-Home Ownership Counseling” offered through  Neighborhood Housing Services of Provo. They may be contacted at (801) 375-5820 or 39 W. 300 N. Provo.
5. Attach Sellers Affidavit.  (Form provided by the Provo Redevelopment Agency)

     How long does it take to process a loan application?

1. Our normal loan processing time is approximately one week to determine eligibility.
2. We will then work with Neighborhood Housing Services directly on the arrangements for the down payment assistance.

$5,000 Grant

The Provo City Redevelopment Agency will give a credit against the Equity Sharing Loan balance of up to $5,000 to home buyers who make an equal amount of home improvements to the property.  Improvements must be pre-approved and must be received by the Redevelopment Agency within 90 days following closing.

1. Up to $5,000 forgivable of original loan
2. Pre-approved list of work to be done (loan committee approval)
3. Must have receipts and documentation of work (may require visual inspection before and after)
4. Copy of building permit if required
5. 5-year deadline for submitting receipts
6. Improvements may include luxury items such as air conditioning; sprinkler system; landscaping; decking; typical rehab items such as new carpet replacement, cabinets; blinds; windows; energy efficiency items.
7. Removable appliances are ineligible

        Information about the Equity Sharing program is available in English and Spanish in .PDf format.

The Provo Development Agency (RDA) partners with Neighborhood Housing Services of Provo (NHS), a local non-profit agency whose organization is dedicated to the revitalization efforts of Provo’s Central Pioneer Neighborhoods.

NHS will offer a First Mortgage at 80% which is a Fannie Mae Loan funded by local financial institutions.   A Second Mortgage up to 15% is also administered through NHS. This “swing” loan provides down payment and closing cost assistance at a reduced rate for up to twenty (20 ) years and is funded by a pool of lenders. The RDA will provide a third mortgage at 10% or $17,870 whichever is less. The loan terms will be 0% interest rate with deferred payments.  The RDA Loan is due on sale or default of contract agreement terms.

The Housing Rehabilitation and Homeownership Programs  comply with the lead-based paint regulation (24 CFR §570.608; 24 CFR 35) issued from the Department of Housing and Urban Development (HUD). The lead-based paint regulation will affect any home built prior to January 1, 1978.

Provo City Redevelopment Agency is notifying all applicants of the hazards related to lead-based paint by providing a copy of the pamphlet, "Protect Your Family From Lead In Your Home," developed by the United States Environmental Protection Agency (EPA), United States Consumer Product Safety Commission (CPSC), and United States Department of Housing and Urban Development (HUD).

You can download a copy of the Pamphlet in English or Spanish

Provo City Redevelopment Agency
86 N. University Ave., Ste 240
Provo, Utah 84601
(801)  852-6160   TDD (801)  852-6160
Office Hours: Monday - Thursday 7 AM - 6 PM