Affordable Housing

Overview

The purpose of the Mortgage Assistance Program is to improve the quality of life for families and strengthen the community by helping qualified households purchase housing in Eagle Mountain.

Adopted in 2024, this program seeks to assist households who otherwise would not be able to become homeowners in achieving this goal.

The City’s General Plan includes a Moderate Income Housing Strategy to implement a mortgage assistance program for employees of the municipality, an employer that provides contracted services to the municipality, or any other public employer that operates within the municipality.

Priority will be given to public employees, such as teachers, firefighters, police, and others, who find it difficult to afford to live in the same city in which they work. Eagle Mountain City leaders want to help these employees by offering a mortgage assistance program.

Funds are provided by the Eagle Mountain Redevelopment Agency as permitted by Utah’s Community Reinvestment Agency Act. Eagle Mountain City administers the program.

Income Eligibility

For the current year, the Area Median Income (AMI) for Utah County is $109,500 (assumes a household of four persons). The intended target for this program is for households with incomes at 80% of AMI or lower. However, current conditions (local housing prices, mortgage interest rates, and the number of suitable housing units available) make it difficult for homebuyers, even at higher incomes.

Eagle Mountain City will consider applications for prospective homebuyers, with the maximum household income ranging from $91,600 (for a household of one person) to $151,800 (for a household of six or more persons). See the chart below for specific limits based on household size.

Household Size	80% AMI	120% AMI
1	$61,050	$91,600
2	$69,750	$104,700
3	$78,500	$117,800
4	$87,200	$131,400
5	$94,200	$141,300
6	$101,200	$151,800
7	$108,150	$151,800
8	$115,150	$151,800

Terms

The agreement outlines key terms for homebuyers participating in the program, emphasizing long-term commitment to the purchased residence. These conditions ensure the home remains the buyer’s primary residence and include provisions for loan repayment and penalties if the agreement terms are violated.

• The term of the agreement shall be for 15 years.
• The residence purchased must be the permanent and primary residence of the homebuyer after closing; the homebuyer shall continue to reside in the residence throughout the agreement term.
• If the homebuyer sells the residence during the agreement term, they must repay the loan; which may be subject to proration depending on forgiveness eligibility.
• If the residence is leased, rented, sublet or the like at any time during the agreement term, the homeowner must repay the loan.
• If the residence is sold or rented within the first two years of the term, the homeowner must pay a $2,000 penalty in addition to loan repayment.

Loan Forgiveness

Loan forgiveness is available on a prorated basis between 10 and 15 years of continued homeowner occupancy. For public employees, loan forgiveness is available on a prorated basis between five and 10 years.

For public employees of Eagle Mountain City, Alpine School District, Utah County, and the Central Utah Water Conservancy District, loan forgiveness is available on a prorated basis between three and five years.

Application

Applicants must submit a completed application package, including the following materials:

• Completed and signed application
• Copies of Federal tax returns
• Proof of income
• Copies of bank statements
• Home Ownership Class certificate or receipt indicating course has begun
• Loan pre-approval letter from lender (dated within the last 30 days)
• Documentation for all debts
• Proof of identity

Applications, Prioritization, and Use of Funds

Applications will be received, considered, and approved during regularly scheduled and advertised application periods with priority given in the following order:

1) Public employees of a participating entity;

2) Public employees; and

3) Other qualified applicants.

Then applicants will be prioritized based on their income relative to the area median income (AMI). Lower income households will receive higher priority.

Following each application period, staff will review applications and qualify applicants, providing notice of eligibility no later than 15 business days following the end of application period.

If RDA Housing funds are unavailable for the Mortgage Assistance loan, the City may suspend or discontinue accepting applications until funds become available.

The application period runs from the 1st through the 15th of the start of every quarter throughout the calendar year.

Qualifications

The applicant, along with all others over the age of 18 who will reside in the residence to be purchased, shall have a combined household income that is no more than 120% of the current median annual income for Utah County, as published annually by HUD. Married applicants or applicants with a partner must co-apply for the MAP even if only one of them is obtaining the first mortgage. The program does not allow for co-signers that will not be owner-occupants of the house being purchased.

Only owner-occupied units located within Eagle Mountain City limits are eligible for consideration. Present ownership interest disqualifies an applicant from eligibility. The homebuyer must pay a down payment toward the purchase of the residence of at least $1,000.

The applicant must qualify for, and receive, fixed-rate financing for the purchase of the residence through a customary mortgage lender before applying for mortgage assistance. Applicants may seek preapproval for this program after obtaining preapproval from a customary mortgage lender.

Applicants must have a minimum mid-credit score of 650 or higher. Monthly Housing Expense Ratio (HER) cannot exceed 33% of the household monthly gross income if their mid-credit score is 650-699 and cannot exceed 35% if their mid-credit score is 700 or higher. Housing expenses or “PITI” includes taxes, insurance, principal payment and HOA fees of the new home loan.

Total debt-to-income ratio (DTI) cannot exceed 43% of the household monthly gross income if applicant’s mid-credit score is 650-699 and cannot exceed 45% if their mid-credit score is 700 or higher. This includes existing monthly debt payments and monthly payment of the new home loan.