Mortgage in Utah
Utah has some of the best outdoor activities that you will find anywhere in America. Skiing, hiking, and everything in between is all very accessible throughout most of the state. Interestingly, Utah has the largest median home size , so if you're looking for a significant but relatively affordable home, Utah is the place to get it! Use our Utah mortgage calculator to see how much home you can afford and see if a move makes sense for your financial situation!
Utah Mortgage Calculator: Here Are Three Common Mortgage Types
Mortgages are not all the same. There are three common mortgage types that any homebuyer in Utah should know.
- Utah conventional mortgage: Since property prices are relatively low, most Utah residents can get a traditional mortgage that's "conforming." This term means that the loan is less than approximately $550,000 (some counties have higher limits). With these loans, you'll need as little as 3% down and a credit score of 620 or higher. You will also need a debt-to-income ratio of 50% or less, although 45% or lower is typically better.
- Utah FHA mortgage: In more rural areas of Utah, FHA loans are quite popular. These mortgages require as little as 3.5% down as long as you have a credit score of 580 or better. If you have a 500 or more credit score, you can still get a loan, provided you have 10% down.
- Utah VA mortgage: For those serving or those that served in the military, a VA mortgage is often the best choice. This loan type requires 0% down and does not have any mortgage insurance. Borrowers will need a credit score of 660 or more.
These programs are available for all Utah residents (both current and future). If you are a first-time homebuyer, the state provides additional incentives.
First-Time Homebuyers in Utah
The Utah Housing Corporation offers a few programs to help homebuyers stop renting and start owning.
The FirstHome program provides a 30-year fixed-rate mortgage for first-time buyers with a 660 or higher credit score. Down payment assistance is available on a 30-year fixed-rate second mortgage.
Eligibility Criteria: Income and purchase price restrictions apply.
Similar to the FirstHome program, this one also provides a 30-year fixed-rate mortgage.
Eligibility Criteria: Income restrictions apply. This program does not, however, have any purchase price restrictions.
The intention behind the Score program is to help homebuyers who have less-than-stellar credit. Like the other programs, this one enables you to get a 30-year fixed-rate mortgage and is eligible for down payment assistance as a second loan.
Eligibility Criteria: Borrowers must have a credit score of 620 or higher to apply. Income and purchase price restrictions apply to this program.
Utah Mortgage Calculator: See What Mortgage Type Works for You
There are many reasons to move to Utah. With family-friendly cities, plenty of outdoor activities, and excellent food, Utah consistently ranks highly as a desirable place to live. Use our Utah mortgage calculator to see how much home you can afford and how a move will affect you financially!