Affordable Housing

Overview

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. Eagle Mountain City’s Mortgage Assistance Program* offers a 0%, deferred payment, forgivable, 15-year loan of up to $25,000 to qualified, first-time homebuyers, who will live in the City. By design, priority will be given to public employees, such as teachers, firefighters, police, utility workers, and others, who find it difficult to afford to live in the same city in which they work.
The City will accept applications until the 15th day of each month. The number of available loans by month for the remainder of 2025 are as follows:

• April 4
• May 5
• June 5
• July 5
• Aug. 4
• Sept. 4
• Oct. 4
• Nov. 1
• Dec. 1
  
  *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 (FY 2024-25), 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.

*Figures are updated annually and apply from July to June.

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

Mortgage Assistance Program Loans are secured by a loan agreement, promissory note, and trust deed in second position to the first mortgage. The Mortgage Assistance Program Policy document 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, Unified Fire Authority and the Central Utah Water Conservancy District, loan forgiveness is available on a prorated basis between three and five years.

Application

Applicants must sign and submit a complete application using the link below, which includes the following materials:

• Copies of Federal tax returns
• Proof of income
• Copies of bank statements
• Home Ownership Class certificate (may be done after approval, but must be done before closing)
• Documentation for all debts
• Proof of identity
• Authorization to complete a background check
• Any other required or requested information

Homebuyer Education Courses

Fees may apply.

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 (Eagle Mountain City, Alpine School District, Utah County, Unified Fire Service Authority, and Central Utah Water Conservancy District);

2) Public employees; and

3) Other qualified applicants.

Then applicants will be prioritized based on their income relative to the area median income (AMI) by household size, with lower percentages receiving 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 deadline is 15th of every month.

Failure to provide sufficient documentation, for any reason, needed by staff to determine eligibility and loan qualification will render an application incomplete.

Applicants who were not able to prequalify in time for the City to issue letters of conditional approval, will be considered in the next application period and prioritized according to policy.

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

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For more information, please email:
mortgageprogram@eaglemountain.gov

Or contact Jacinda Montano
801-847-5810
jacinda@uhlending.com

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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 Mortgage Assistance Program (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 simultaneously with their application for the MAP loan.

Applicants must have a FICO score of 650 or higher.

Monthly Housing Expense Ratio (HER) cannot exceed 47% of the household monthly gross income. 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 50% of the household monthly gross income. This includes existing monthly debt payments and monthly payments of the new home loan. Applicants must choose a home whose required payment fits within these limits.