Financing and Home Loans — Utah 2026
Updated for 2026 rates and loan limits
Financing
and Home
LoansUtah.
Min. down — conventional3%
Min. down — FHA3.5%
Min. down — VA loan$0
Min. credit — conventional620+
Min. credit — FHA580+
Conventional, FHA, VA, USDA, and Utah Housing Corporation loans — what each requires, what each costs, and how to choose the right one for your Northern Utah home purchase. Every loan type explained without the jargon.
Loan Types
The Four Main Loan Types
Available to Northern Utah Buyers
Each loan type has different eligibility requirements, costs, and tradeoffs. Choosing the wrong loan for your situation can cost you tens of thousands of dollars over the life of the loan — choosing correctly can save you the same amount.
Conv.
Conventional Loan
Min. Down Payment
3 – 20%
Min. Credit Score
620+ (720+ for best rates)
Private Mortgage Insurance
Required below 20%
PMI Removable?
Yes — at 20% equity
Loan Limit (2026)
$806,500
FHA
FHA Loan
Min. Down Payment
3.5%
Min. Credit Score
580+
Mortgage Insurance
Always — MIP for life
MIP Removable?
No (below 10% down)
Upfront MIP
1.75% of loan amount
VA
VA Loan
Min. Down Payment
$0
Min. Credit Score
Lender sets (typically 580+)
PMI / MIP
Never
Funding Fee
1.25 – 3.3% (waived for 10%+ disability)
Loan Limit
No limit (full entitlement)
UHC
Utah Housing Corp.
Min. Down Payment
As low as 0%
Min. Credit Score
660+
Down Payment Assistance
Up to 6%
Income Limits
Yes — by county
Homebuyer Ed Required
Yes — online course
Side by Side
Complete Loan Comparison
for Northern Utah Buyers
| Feature | Conventional | FHA | VA | UHC / State |
|---|---|---|---|---|
| Min. Down Payment | 3 – 20% | 3.5% | $0 | As low as 0% |
| Min. Credit Score | 620+ | 580+ | Lender sets | 660+ |
| Mortgage Insurance | Below 20% down | Always (MIP) | Never | Varies by product |
| Remove Mortgage Insurance? | Yes at 20% | No (below 10%) | N/A — none | Depends |
| Interest Rate vs Market | Market rate | Slightly below | 0.25–0.5% below | Below market |
| Down Payment Assistance | No | No | No | Up to 6% |
| First-Time Buyer Required? | No | No | No | Yes (3-yr rule) |
| Income Limits | None | None | None | Yes — by county |
| Military Eligibility Required | No | No | Yes | No |
| Max Loan Amount (2026) | $806,500 | $524,225 | No limit | County limit |
Why Your Rate Matters
More Than You Think
More Than You Think
On a $450,000 loan — the difference between a 6.5% and 7.5% rate is over $54,000 over 30 years.
Monthly payment comparison on a $450,000 loan at different interest rates — showing exactly how much each 0.5% difference costs you per month and over 30 years.
6.0% — VA / excellent credit$2,698/mo
30-year total interest: $321,271
6.5% — conventional, 720+ score$2,844/mo
30-year total interest: $373,757
7.0% — conventional, 660 score$2,993/mo
30-year total interest: $427,631
7.5% — FHA, lower credit$3,146/mo
30-year total interest: $482,920
Credit score impact on conventional loan rate — improving your score before applying is one of the highest-ROI moves a Northern Utah buyer can make.
760+
~6.5%
720–759
~6.8%
680–719
~7.1%
620–679
~7.5%
Approximate rates for illustration. Actual rates vary daily and depend on multiple factors. Contact a lender for current rates specific to your profile.
See exactly how different rates affect your Northern Utah monthly payment
Open Mortgage Calculator
Decision Guide
Which Loan Is Right
for Your Situation?
If you are...
Active duty, a veteran, or a surviving spouse
Then...
Use your VA loan benefit before considering any other loan type. Zero down, no PMI, below-market rates, and a lifetime reusable benefit. It is almost always the best deal available to you.
VA Loan
If you are...
A first-time buyer in Northern Utah with 660+ credit
Then...
Check Utah Housing Corporation program eligibility before your first lender conversation. The Score DPA second mortgage can cover most or all of your required down payment — many qualified buyers never know this exists.
UHC / Score Loan
If you are...
A buyer with 720+ credit and 5%+ down
Then...
Conventional is typically your best long-term bet. Better rates than FHA at strong credit scores, PMI that can be removed at 20% equity, and no income or purchase price limits.
Conventional
If you are...
A buyer with a 580–659 credit score
Then...
FHA is likely your best option. The lower credit score threshold makes it accessible — but understand that mortgage insurance stays for the life of the loan if you put less than 10% down. Build toward refinancing to conventional when your equity reaches 20%.
FHA Loan
If you are...
Buying in a rural Northern Utah area
Then...
Some areas in Cache County, Morgan County, and rural Weber County qualify for USDA zero-down loans. Check USDA eligibility maps — if your target property is in a qualifying area and you meet income limits, USDA can be a strong alternative to FHA.
Check USDA Eligibility
If you are...
Buying above the conforming loan limit
Then...
Loan amounts above $806,500 in 2026 require jumbo financing. Jumbo loans typically require 10-20% down and a 700+ credit score. VA loans have no limit for buyers with full entitlement — an important advantage for higher-priced Northern Utah purchases.
Jumbo / VA
What Lenders Evaluate
Five Things Every Northern Utah
Lender Looks At
01
Credit Score
The biggest driver of your interest rate. Improving from 680 to 760 can save 0.5-0.75% on a conventional rate — worth thousands over the life of a Northern Utah mortgage.
02
Debt-to-Income Ratio
Total monthly debts including the new mortgage divided by gross monthly income. Most conventional lenders want total DTI below 43-45%. FHA allows slightly higher. VA is more flexible.
03
Two Years of Employment History
Consistent employment in the same field for two years. Recent job changes are fine if staying in the same industry. Self-employed buyers need two years of tax returns showing stable income.
04
Down Payment Source
All funds must be documented and sourced. Gift funds are allowed on most loan types with a gift letter. Borrowed down payments are generally not acceptable.
05
Cash Reserves After Closing
Most lenders want to see 2-3 months of mortgage payments in reserve after closing — in addition to your down payment and closing costs.
"Randall connected us with a lender who knew the UHC programs. We bought our first home in Layton with $3,800 out of pocket total."
First-Time Buyers — Layton, Utah
Put This Knowledge to Work
Free Tools That Use
Real Northern Utah Data
Utah Mortgage Calculator
Compare payment across all loan types — real Northern Utah property tax rates by county included
Open
Closing Cost Calculator
Closing costs vary significantly by loan type — see the full itemized breakdown before you commit
Open
Buyer Readiness Score
Check credit, DTI, savings, and employment against actual lender requirements before you apply
Open
True Cost of Homeownership
Your real monthly number — mortgage, taxes, insurance, PMI, HOA, and maintenance all included
Open
Common Questions
Home Loan FAQ
Should I use my builder's preferred lender on a new construction purchase?+
Builders often offer incentives — closing cost credits or rate buydowns — for using their preferred lender. These can be genuine advantages. However, always compare the total cost of the builder's lender versus outside lenders before committing. Sometimes the incentive compensates for a higher interest rate that costs you more over the loan's life.
How long does mortgage pre-approval take in Northern Utah?+
A full pre-approval with a prepared local lender typically takes 1-3 business days. Some Northern Utah lenders can issue a pre-approval in 24 hours for straightforward files. Gather your documents in advance: last two years of tax returns and W-2s, 60 days of bank statements, 30 days of pay stubs, and government ID.
Can I use more than one loan program at the same time?+
In some cases, yes. The most common combination in Northern Utah is a UHC FirstHome loan paired with the UHC Score second mortgage for down payment assistance. The two programs are designed to work together. VA loans cannot be combined with FHA or conventional programs on the same property, but a VA primary loan can be combined with some down payment grant programs.
Is FHA or conventional better for a first-time buyer in Northern Utah?+
If your credit score is 660+ and you can access UHC programs, start there before comparing FHA and conventional — the UHC programs often beat both on total cost. If UHC doesn't apply, run the numbers: for buyers with 720+ credit who can put 5%+ down, conventional wins long-term because PMI can be removed. For 580-659 credit with minimal savings, FHA is typically the only viable option. Use the Mortgage Calculator to compare both scenarios side by side.
For official information on FHA, VA, and USDA loan programs, see ConsumerFinance.gov loan options guide.
Northern Utah — Lender Referrals Available
Not Sure Which Loan
Is Right for You?
Call me and I will help you figure out which loan type fits your situation — then connect you with the right Northern Utah lender to confirm eligibility and get pre-approved fast.
