Low Down Payment Options for Utah Housing

For many Utah residents, the dream of homeownership feels out of reach—not because of the monthly mortgage payment, but because of the upfront down payment. With home prices rising across the Wasatch Front and beyond, saving for 20% down can seem nearly impossible. Fortunately, Utah has multiple low down payment housing options that make buying a home more realistic for first-time buyers, families, and veterans.

Utah Housing Corporation (UHC) Loan Programs

The Utah Housing Corporation (UHC) provides some of the most popular programs for Utah buyers needing help with upfront costs. UHC loans are paired with FHA, VA, USDA, or conventional loans and can include down payment assistance (DPA) to cover upfront cash requirements.

• FirstHome Loan: Designed for first-time buyers who meet income limits.

• HomeAgain Loan: For buyers who may not qualify as first-time homeowners.

• Down Payment Assistance (DPA): Comes as a small second mortgage to cover down payment and closing costs.

With UHC programs, many Utah buyers can secure financing with little or no out-of-pocket money down.

FHA Loans – 3.5% Down

FHA loans are a popular choice in Utah for buyers who don’t have perfect credit. They allow home purchases with as little as 3.5% down, and their flexible requirements make them accessible to a wide range of borrowers. FHA loans are often paired with UHC assistance to minimize upfront costs.

USDA Loans – 0% Down in Rural Utah

The USDA Rural Development Loan offers 100% financing for homes in designated rural areas. Many towns and communities in Utah qualify, making USDA loans a great fit for buyers willing to live outside of major metro areas. They also come with lower mortgage insurance costs compared to FHA loans.

VA Loans – 0% Down for Veterans

For Utah veterans, service members, and eligible surviving spouses, VA loans are among the best options available. They require no down payment, have no monthly mortgage insurance, and usually offer very competitive interest rates. With Utah’s strong military community, VA loans are a powerful path to homeownership.

Conventional Loans – 3%–5% Down

Some lenders in Utah offer conventional mortgages with as little as 3% down for first-time homebuyers. These can be a smart option for those with stronger credit, as conventional loans often come with lower long-term costs compared to FHA loans, which require an upfront mortgage insurance premium.

Tips for Utah Buyers Considering Low Down Payment Options

• Check eligibility: Many programs have income, credit, or location requirements.

• Plan for mortgage insurance: Most low down payment loans include mortgage insurance.

• Research local programs: Some Utah cities and counties offer grants and assistance beyond state programs.

• Work with the right lender: Not every lender is familiar with Utah-specific programs like UHC.

Final Thoughts

Saving for a large down payment doesn’t have to delay your dream of owning a home in Utah. From Utah Housing Corporation loans to FHA, USDA, VA, and low-down conventional mortgages, there are multiple Utah low down payment housing options that make homeownership possible.

The best next step is to connect with a Utah lender who specializes in these programs—you may be closer to owning a home than you think.