First-Time Home Buyer in Utah
Programs, steps, and tips
Buying your first home in Utah is intimidating. The good news: Utah has more first-time buyer assistance programs than most states. This guide covers what you qualify for, how to qualify, and the step-by-step path to your first Utah home.
Utah Housing Corporation programs
The Utah Housing Corporation (UHC) offers several first-time buyer programs. The FirstHome Loan provides 30-year fixed financing with down payment assistance up to 6% of the loan amount. The HomeAgain Loan is for repeat buyers, also with down payment assistance. The Score Loan is for buyers with credit scores as low as 620. Income limits vary by county and household size; check utahhousingcorp.org for current limits.
FHA loans (most popular for first-time buyers)
FHA loans require 3.5% down with credit scores 580+. Closing costs can be rolled into the loan. Mortgage insurance is required for the life of the loan (a downside vs conventional), but the lower barrier to entry makes FHA the most common first-time buyer loan in Utah.
Conventional loans with low down payment
Conventional loans now offer 3-5% down options (Fannie Mae HomeReady, Freddie Mac Home Possible) for first-time buyers. Higher credit standards than FHA but lower long-term costs because PMI drops off at 20% equity.
VA loans for veterans
Active duty military and veterans can qualify for VA loans with 0% down, no PMI, and competitive rates. Utah has a strong military community (Hill Air Force Base, National Guard) and many lenders specialize in VA loans.
USDA loans for rural Utah
USDA loans offer 0% down for properties in USDA-eligible areas. Many areas surrounding Utah’s urban centers qualify — including parts of Tooele County, Cache County, and rural Salt Lake County edges. Check eligibility maps at usda.gov.
The step-by-step path for first-time Utah buyers
Step 1: Pull credit and address any issues (collections, errors, balances). Step 2: Save for down payment + closing costs (typically 5-7% of purchase price combined). Step 3: Get pre-approved with a Utah lender who handles UHC programs. Step 4: Connect with a Utah Realtor who specializes in first-time buyers. Step 5: Define realistic search criteria based on pre-approval. Step 6: Tour, offer, inspect, close. Step 7: File homestead exemption immediately at closing for the property tax discount.
Common first-time buyer mistakes in Utah
Not getting pre-approved before shopping (wastes 4-6 weeks). Maxing out the pre-approval amount (leaves no margin for repairs/furniture). Skipping the inspection (hidden defects cost thousands). Buying without understanding HOA rules (Utah HOAs vary widely in fees and restrictions). Not asking about radon (Utah has high radon levels statewide). Forgetting to file homestead exemption (overpaying property tax for years).
Frequently Asked Questions
How much do I need to save to buy my first home in Utah?
Plan on 6-8% of purchase price: 3-5% down, plus 2-3% closing costs. On a $400K starter home, that is roughly $24-32K.
What credit score do I need as a first-time buyer in Utah?
FHA: 580 minimum. UHC programs: 620+. Conventional: 620-680+. Higher scores get better rates.
Can I buy without a down payment in Utah?
VA and USDA loans allow 0% down. UHC down payment assistance can cover up to 6% of the loan, effectively a 0% down conventional or FHA loan.
How much house can I afford as a first-time buyer?
Typically 3-4x gross annual household income, depending on debts, down payment, and rate. Use the affordability calculator at krisbowen.com/utah-home-affordability-calculator/.
