How Much Money Do You Need for a Down Payment on a House in Utah?
Buying a home is one of the biggest financial steps you’ll take, and for many, the down payment is the biggest hurdle. But how much do you actually need to put down on a house in Utah? The answer depends on several factors, including loan type, lender requirements, and available assistance programs.
Minimum Down Payment Requirements by Loan Type
1. Conventional Loans
Typical Down Payment: 5% - 20%
Minimum Required: 3% (for qualified buyers)
If you put less than 20% down, you may need to pay for private mortgage insurance (PMI), which protects the lender in case of default.
2. FHA Loans (Government-Backed Loan for First-Time Buyers)
Typical Down Payment: 3.5%
Minimum Required:
3.5% (for credit scores 580+)
10% (for scores 500-579)
Down Payment Help:
FHA allows second mortgages or assistance programs to cover down payments.
Many Utah down payment assistance programs work with FHA loans, reducing upfront costs.
3. VA Loans (For Eligible Military Members & Veterans)
Minimum Required: 0% – No down payment required
VA loans offer zero down payment for eligible service members, veterans, and some surviving spouses.
4. USDA Loans (For Rural & Suburban Homebuyers)
Minimum Required: 0% – No down payment required
Must meet income limits and purchase a home in an eligible rural area.
How Much Does That Actually Mean in Utah?
Utah’s median home price is around $562,200 (as of 2024). Based on that:
Conventional Loan (5% Down): $28,110
FHA Loan (3.5% Down): $19,677 (but could be covered with a second mortgage or assistance program!)
VA/USDA Loan (0% Down): $0
Utah Down Payment Assistance Programs
If you don’t have the full down payment saved, you may qualify for Utah down payment assistance programs, which offer:
✅ Grants & Loans to cover down payments and closing costs
✅ Low or No-Interest Second Mortgages (some forgivable over time)
✅ Programs for First-Time & Repeat Buyers
Popular Utah assistance programs include:
Utah Housing Corporation (UHC) FirstHome Loan – A second mortgage for first-time buyers to cover down payments.
Utah Housing Score Loan – Available to buyers with lower credit scores, providing down payment and closing cost assistance.
County & City Grants – Many local programs provide grants for homebuyers in specific Utah areas.
Other Costs to Consider
In addition to the down payment, here are some other upfront costs to keep in mind:
✅ Closing Costs: Typically 2-5% of the purchase price (about $11,000-$28,000 on a $562,200 home).
✅ Earnest Money Deposit: Usually 1-2% of the home price, later applied to your down payment or closing costs.
✅ Moving Expenses & Repairs: Some homes need immediate fixes or new furniture.
How Property Pulse Utah Helps You Save
At Property Pulse Utah, we help homebuyers keep more money in their pockets by negotiating the best rates with top agents. Plus:
💰 $750 cashback after closing – Use it for moving expenses or home improvements.
💰 Pre-negotiated low commission rates for sellers – Meaning lower fees and more equity in your pocket when selling your home.
Whether you’re buying your first home or upgrading to your next, we ensure you get the best service at the best price.
📢 Ready to start your home search? Let’s connect today!
