First-Time Home Buyer Readiness Score — Am I Ready to Buy in Utah? | Randall Gorham

✅ Buyer Tool

First-Time Buyer
Readiness Score

Enter 6 details about your finances and get a personalized readiness score plus a step-by-step action plan to buy your first home in Northern Utah.

Tell Us About Your Situation

Credit

Credit Score Range

Income & Employment

Annual household income $75,000

Employment Type

Savings & Debt

Down payment saved $15,000

Monthly debt payments $400/mo

Car loans, student loans, credit cards, personal loans

Timeline

When do you want to buy?

Your Readiness Score

/ 100

Calculating…

Score Breakdown — 6 Factors

Credit Score

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Income

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Employment

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Down Payment

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Debt Load

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Timeline

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Your Action Plan

Want help putting this plan into action? Let's talk through your next steps.

Call Randall — (801) 430-4000

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What does it really take to buy your first home in Utah?

The answer is different for everyone — and it changes depending on which loan program you use, what the market is doing, and how flexible you are on timeline. But there are six factors that lenders look at every time, and understanding where you stand on all six is the first step to making a confident purchase.

This tool scores you on each factor and generates a personalized action plan. Whether you're a year away or ready to write an offer next month, you'll leave with a clear picture of what to do next.

The 6 factors that determine your readiness

1. Credit Score. Your credit score determines whether you qualify and what interest rate you'll pay. In Northern Utah's current market, you'll want at least a 620 for an FHA loan, 640+ for most conventional programs, and 720+ to access the best rates. A 0.5% difference in rate on a $400,000 loan means about $120/month — over 30 years that's $43,000.

2. Income. Lenders use your gross income to calculate your qualifying ratios. For a median Davis County home at $465,000 with 10% down, you'd typically need a household income of $90,000–$110,000 to qualify comfortably at current rates.

3. Employment Stability. Lenders want to see a 2-year history of consistent income. W-2 employees are simplest to qualify. Self-employed buyers need 2 years of tax returns showing qualifying income. Military buyers using VA loans have more flexibility.

4. Down Payment. Contrary to popular belief, you don't need 20% down to buy a home in Utah. FHA allows 3.5% down (with a 580+ credit score), conventional programs go as low as 3%, VA loans require zero down, and Utah Housing Corporation programs offer down payment assistance for qualifying buyers.

5. Debt Load. Your debt-to-income ratio (DTI) is one of the most important numbers in your file. Total monthly debt payments (including the new mortgage) should ideally be under 43% of gross income. High car payments or student loans can significantly reduce your home-buying budget.

6. Timeline. Your timeline affects everything else. If you're buying in 3 months, you need to be ready now. If you have 12–18 months, you have time to improve your credit, save more, or pay down debt — and this tool's action plan is built around your specific timeline.

Utah programs that help first-time buyers

Utah has some of the most accessible first-time buyer programs in the country. The Utah Housing Corporation (UHC) offers several loan types with down payment assistance that can eliminate or dramatically reduce what you need to bring to closing:

FirstHome Loan — for true first-time buyers (no home ownership in 3 years), down payment assistance available
HomeAgain Loan — for buyers who've owned before; same competitive rates with assistance
Score Loan — designed for buyers with credit scores as low as 620
VA Loans — zero down, no PMI, for eligible military members and veterans near Hill AFB
USDA Rural Development — zero down for eligible properties in Box Elder and parts of Weber County

Frequently asked questions

How quickly can I improve my credit score?

Significant improvements (40–60 points) are possible in 3–6 months with focused effort. The fastest wins: paying down credit card balances below 30% utilization, disputing any errors on your report, and making sure all accounts are current. Avoid opening new accounts or taking hard inquiries while you're working on it.

Can I buy a home if I'm self-employed?

Yes — but you need 2 years of tax returns showing consistent qualifying income. The challenge for self-employed buyers is that legitimate tax deductions reduce your reported income, which reduces your qualifying amount. A good mortgage broker who works with self-employed buyers can help you structure this correctly.

What's the minimum down payment for a Northern Utah home?

Technically as low as 0% with a VA or USDA loan, 3% with some conventional programs, or 3.5% with FHA. Utah Housing Corporation programs can help cover part or all of the down payment for qualifying buyers. The tradeoff for lower down payments is either PMI costs or a slightly higher interest rate — use the True Cost of Homeownership tool to see the full monthly picture.

Do I need to be pre-approved before working with a realtor?

In today's Northern Utah market, almost every seller will expect a pre-approval letter with any offer. I recommend getting pre-approved before we start looking at homes — it costs nothing, takes 1–2 days, and it tells you exactly what you qualify for rather than relying on estimates. I can connect you with trusted local lenders who are fast and transparent.