Eagle Mountain launches Mortgage Assistance program
Eagle Mountain City has unveiled a new Mortgage Assistance Program designed to make homeownership more attainable for targeted applicants.
The program, which starts Jan. 1, 2025, aims to strengthen the community by helping qualified households purchase housing within City limits.
City officials say the program will prioritize public employees such as teachers, Sheriff’s Office deputies and firefighters who often struggle to live in the communities they serve.
“Utah requires every city and county to adopt at least three moderate income housing strategies; we chose five,” says Eagle Mountain Director of Legislative Affairs Cliff Strachan. “Recognizing the challenging economics of our times, including housing affordability, and the importance of home ownership and occupancy in the community, the City Council wanted to help the ‘helpers’ with one of the strategies.”
The program comes at a time when rising housing costs and mortgage rates have made homeownership increasingly difficult, even for households with moderate or higher incomes.
Funded by the Eagle Mountain Redevelopment Agency under Utah’s Community Reinvestment Agency Act, the initiative aligns with the City’s Moderate Income Housing Strategy outlined in its General Plan.
“Most down payment assistance programs are available to households earning 80% AMI or below,” Strachan said. “There are very few homes available at that level. However, recent changes to state law enabled us to apply RDA affordable housing funds for home purchases at the higher level, making more homes obtainable to more people.”
The program targets households earning up to 120% of Utah County’s Area Median Income (AMI), which is $109,500 for a family of four. For single applicants, the maximum income is $91,600, while for larger households, it increases to $151,800.
To qualify, applicants must meet specific income, credit, and residency requirements:
- Income: Household income cannot exceed 120% of AMI, and preference is given to lower-income applicants.
- Residency: The purchased home must be located within Eagle Mountain City and serve as the buyer’s primary residence for at least 15 years.
- Financial Stability: Applicants must have a mid-credit score of at least 650, with debt-to-income ratios that meet program guidelines.
Participants must also pay a minimum $1,000 down payment and secure fixed-rate mortgage financing before applying.
The program includes long-term agreements designed to ensure homes remain occupied by the applicants and are not rented or sold within the initial two years. If these terms are violated, applicants may face penalties and be required to repay the loan.
Loan forgiveness is available on a prorated basis for participants who remain in their homes for the full 15-year term.
Public employees of participating entities, such as the City and Alpine School District, may qualify for faster forgiveness, achieving full loan forgiveness within three to five years.
“Loan forgiveness is available to all who purchase and occupy a home under this program. Since there is value in having our employees live in the same city in which they work, faster loan forgiveness is a feature of the program,” says Strachan.
Applications for the program will be accepted quarterly, from the 1st to the 15th at the start of each calendar quarter. Priority will be given to public employees of the City, school district, and other public entities, followed by other applicants who meet income qualifications.
To apply, residents must submit a completed application along with supporting documents, including tax returns, proof of income, bank statements, and a loan pre-approval letter from a mortgage lender. Applicants are also required to complete a homeownership education course.
The City will review applications and notify applicants of their eligibility within 15 business days of the application period’s close.
Eagle Mountain City leaders believe the Mortgage Assistance Program will have a meaningful impact on the community, making homeownership more accessible to those who help sustain the city’s essential services.
“The Mayor and the City Council are excited to offer this program, which will help 40 households find a home in Eagle Mountain in 2025,” says Strachan.
For more details, including application requirements and deadlines, visit Eagle Mountain City’s website.