How Much Do I Need for a Down Payment in Utah? Your 2025 Guide
Down Payment Basics — Utah Edition
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Conventional Loans: You can put down as little as 3%, but this typically applies through programs like Conventional 97. Most conventional loans require a down payment of between 5% and 20%, depending on your creditworthiness and the lender’s requirements. (The Mortgage Reports)
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FHA Loans: These are popular in Utah for their flexibility. With a credit score of 580 or higher, you can qualify for a down payment as low as 3.5%. Lower scores (500–579) typically require a down payment of around 10%. (Best Utah Real Estate)
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Zero-Down Options:
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VA Loans: Available to veterans and eligible service members, no down payment is required, and there’s no private mortgage insurance (PMI).
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USDA Loans: Designed for rural homebuyers, these loans also offer 0% down payment options, along with low insurance fees and lenient credit requirements.
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Utah-Specific Down Payment Assistance Programs
Utah offers some of the strongest support in the nation:
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Utah Housing Corporation First-Time Homebuyer Assistance: Get up to $20,000 as an interest-free, deferred second loan, usable toward your down payment, closing costs, or to buy down your interest rate. Applicable for new home construction under $450,000. (Bankrate)
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Provo City Programs:
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Home Purchase Plus: Up to $60,000 in 0% interest, deferred loans for first-time buyers at or below 80% of Area Median Income. Loans are forgivable after 5–15 years, based on the amount. (Provo.gov)
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Loan to Own (Utah County): Up to $40,000 deferred, interest-free loan covering down payment and closing costs; 50% forgiveness after a set period. (Provo.gov)
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Ogden “Own in Ogden” Program: Offers up to $10,000 deferred loan for all qualifying buyers—and up to $15,000 for K–12 teachers purchasing within city limits. (Ogden City)
Utah Down Payment Summary Table
| Loan Type / Program | Minimum Down Payment | Additional Details |
|---|---|---|
| Conventional (Conventional 97) | 3% | Requires PMI until 20% equity (The Mortgage Reports) |
| FHA Loan | 3.5% (≥580 credit) / 10% (500–579) | MIP required (Best Utah Real Estate) |
| VA Loan | 0% | Available for eligible veterans; no PMI (The Mortgage Reports) |
| USDA Loan | 0% | For rural buyers, limited locations (New American Funding) |
| Utah Housing Assistance | Varies (up to $20K) | Zero-interest, deferred second loan (Bankrate) |
| Provo City Assistance | Varies (up to $60K) | Forgivable deferred loan for lower-income buyers (Provo.gov) |
| Own in Ogden Program | Up to $15K | Deferred loan; teacher incentives included (Ogden City) |
Why This Matters to Utah Buyers
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Flexibility: Utah buyers have multiple pathways—even 0% down options—depending on eligibility, residency, and home location.
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Affordability: Programs like Utah Housing assistance and Provo’s offerings significantly reduce upfront barriers, especially for first-time buyers.
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Loan Choices: Whether you prefer FHA’s low down payment or want to avoid mortgage insurance entirely, Utah’s options cater to a range of financial needs.
Final Takeaway
In Utah, down payments begin as low as 3% (Conventional) or 3.5% (FHA)—with 0% options via VA or USDA loans for eligible buyers. And if you’re a first-time buyer, city or state programs like Utah Housing, Provo’s down payment initiatives, or Own in Ogden can provide significant financial support—sometimes up to $60,000—to help you bridge the upfront gap.
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