First-Time Home Buyer Guide for Utah: Programs, Steps, and Tips

First-time home buyer programs in Utah

Buying your first home in Utah is a big step, and the good news is that Utah has more first-time buyer assistance programs than most states. Between state programs, government-backed loans, and low-down-payment conventional options, most first-time buyers qualify for more help than they expect. Below is what is available and how to know which fits you.

Utah Housing Corporation programs

The Utah Housing Corporation (UHC) runs several programs built for first-time and moderate-income buyers:

• FirstHome Loan: 30-year fixed financing with down payment assistance up to 6 percent of the loan amount.
• HomeAgain Loan: for repeat buyers, also with down payment assistance.
• Score Loan: for buyers with credit scores as low as 620.

Income limits vary by county and household size, so check utahhousingcorp.org for the current limits and program details before you apply. A lender who regularly works with UHC programs can tell you quickly which one you fit.

FHA loans, the most popular first-time buyer loan

FHA loans require just 3.5 percent down with a credit score of 580 or higher, and closing costs can often be rolled into the loan. The main tradeoff is that mortgage insurance is required for the life of the loan, which is a downside compared with conventional financing. Even so, the lower barrier to entry makes FHA the most common first-time buyer loan in Utah.

Conventional loans with a low down payment

Conventional loans now offer 3 to 5 percent down options for first-time buyers, including Fannie Mae HomeReady and Freddie Mac Home Possible. The credit standards are higher than FHA, but the long-term cost is often lower because private mortgage insurance drops off once you reach 20 percent equity, rather than lasting the life of the loan.

VA loans for veterans

Active-duty military members and veterans can qualify for VA loans with zero down, no monthly mortgage insurance, and competitive rates. Utah has a strong military community around Hill Air Force Base and the National Guard, and many local lenders specialize in VA financing.

USDA loans for rural Utah

USDA loans offer zero down for properties in USDA-eligible areas. Many areas around Utah’s urban centers qualify, including parts of Tooele County, Cache County, and the rural edges of Salt Lake County. Check the eligibility maps at usda.gov, and ask your lender to confirm a specific address before you fall in love with a home.

The step-by-step path for first-time Utah buyers

1. Pull your credit and address any issues: collections, errors, and high balances.
2. Save for your down payment and closing costs, typically about 5 to 7 percent of the purchase price combined before any assistance.
3. Get pre-approved with a Utah lender who handles UHC programs.
4. Connect with a Utah agent who specializes in first-time buyers.
5. Define realistic search criteria based on your pre-approval, not your wish list.
6. Tour, offer, inspect, and close with guidance at each step.
7. File for the primary residential exemption with your county so you get the owner-occupied property tax rate.

Common first-time buyer mistakes in Utah

• Not getting pre-approved before shopping, which wastes four to six weeks and can cost you a home.
• Maxing out your pre-approval amount, which leaves no margin for repairs and furniture.
• Skipping the inspection, where hidden defects can cost thousands.
• Buying without understanding HOA rules, which vary widely across Utah in fees and restrictions. Our Utah HOA guide walks through what to check.
• Not asking about radon, since Utah has elevated radon levels statewide.
• Forgetting the residential exemption, which can mean overpaying property tax for years.

What it costs to close, and who pays

Budget for your down payment plus closing costs. Buyer closing costs in Utah usually run about 1 to 2 percent of the price, including prepaid escrow, and some fees scale with the purchase price. If you work with a buyer’s agent, their compensation is negotiated separately since the 2024 NAR settlement, and many Utah sellers still offer to cover part or all of it. For a full breakdown of what closing day looks like, see our Utah closing costs guide and run the numbers with the closing cost calculator.

Ready to start? Talk with a Utah buyer’s specialist

Kris Bowen is a licensed Utah real estate broker with LPT Realty, in business since 2003, with more than 1,000 closings, over $880 million in team volume, and 112 five-star Zillow reviews. First-time buyers get the same attention as his seven-figure listings.

Call 801-999-8005 or reach out through our contact page to map out your first-home plan. You can also explore more resources on the buying page.