Yes. In Utah you can buy a home with no down payment in three ways: a VA loan if you've served, a USDA loan if the home is in an eligible area and your income fits, or an FHA or conventional loan where down payment assistance covers the down payment. That last one is open to the most buyers.
One thing to know up front: "no money down" isn't quite "no money." You'll still need some cash for things like earnest money and an inspection, and many assistance programs ask you to put in a small amount of your own. Here's how each route works and what you'll realistically need.
1. VA loans: $0 down for veterans and service members
If you're an eligible veteran, active-duty service member, or qualifying surviving spouse, a VA loan is usually the best deal available:
- No down payment
- No monthly mortgage insurance
- A one-time VA funding fee, 2.15% of the loan on first use with no down payment, which can be added to the loan. Veterans receiving VA disability compensation are generally exempt.
Utah adds a bonus. The Utah Homebuyer Veteran Grant, run by Utah Housing, gives up to $2,500 in cash that you never repay to service members and veterans who separated in the last five years and are buying their first home in Utah. Funding is limited, so ask about it early. More in our VA loan guide.
2. USDA loans: $0 down in eligible areas
A USDA loan also requires no down payment. It has two requirements:
- The home has to be in an eligible area. That doesn't mean farmland. Plenty of Utah's smaller towns and outer suburbs qualify. Areas that have historically qualified, in whole or in part, include Tooele and Grantsville, much of Cache Valley outside central Logan, and Box Elder County towns. Boundaries change, so always check the exact address on the USDA eligibility map.
- Your household income has to be under the limit for your county. USDA counts everyone in the household, not just the people on the loan.
USDA charges a 1% upfront guarantee fee (usually added to the loan) and an annual fee of 0.35%, both lower than FHA's mortgage insurance. Our USDA guide walks through eligibility.
3. FHA or conventional, with down payment assistance covering it
If VA and USDA don't fit, this is the route for you. FHA needs 3.5% down and conventional loans can go as low as 3%, and in Utah, assistance programs can cover that amount.
Utah Housing Corporation (statewide) offers a second mortgage for your down payment and closing costs:
- Traditional: up to 6% of your first mortgage, capped at $27,500. That's more than FHA's 3.5%, so it can cover the whole down payment plus some closing costs. It's a 30-year loan at 1% above your first mortgage rate (8% at most), so it adds a monthly payment.
- Deferred: up to 3.5% of your first mortgage with no monthly payment. Simple interest of 3.5% builds up, and you repay it when you sell or refinance.
You'll need a Utah Housing first mortgage from one of its approved lenders, a 620+ credit score (660 for FirstHome, 680 for HFA Advantage), and income under its limits, which start at $118,000 and run past $165,000 depending on the program, county and household size. See Utah Housing programs.
City and county programs can be even larger, often with no monthly payment: Provo's Home Purchase Plus (up to $60,000), Utah County's Loan to Own (up to $40,000), Own in Salt Lake County (up to $20,000), and Own in Ogden ($10,000), among others. Most cap income at 80% of the area median and ask you to put in some of your own money, often $500 to $1,000 (Own in Salt Lake County asks you to cover half of the required down payment). Davis County's program is out of funds until July 1, 2027. Every program is on the Utah down payment assistance page.
Buying new construction? Utah's SB240 program offers first-time buyers up to $20,000 toward the down payment, closing costs, or a permanent rate buydown on a new home under $450,000. It requires a Utah Housing first mortgage, and when we checked Utah Housing's site in October 2026, about 329 spots remained.
Most buyers use one program, not several; here's why.
Can I buy a home in Tooele County with no down payment?
Often, yes, and it's a good place to try. Parts of Tooele and Grantsville have historically fallen inside USDA's eligible areas, which means $0 down for income-eligible buyers, and Utah Housing's assistance works there like everywhere else in the state. With a median sale price of $468,700 in August 2026, compared with $555,000 in Salt Lake County, your money also goes further. Check the address on the USDA map before you get attached, and see our Tooele first-time buyer guide.
The cash you'll still need
Even with $0 down, plan for some out-of-pocket costs:
- Earnest money. A deposit when your offer is accepted, credited back to you at closing.
- Inspection and appraisal. Usually paid before closing, often a few hundred dollars each.
- Your required contribution. Many assistance programs ask for $500 to $1,000 of your own money, and a few ask for more.
- Closing costs. Typically 2% to 5% of the price. These can often be covered by assistance or by the seller: FHA and USDA allow seller contributions of up to 6% of the price, VA allows seller concessions of up to 4% on top of normal closing costs, and conventional loans with less than 10% down allow up to 3%. See Utah closing costs.
Put it together and many buyers close with a few thousand dollars or less out of pocket. That isn't zero, but it's a long way from saving 3.5% or 20%.
The trade-off of buying with no money down
Borrowing the down payment means a bigger loan, so your payment is higher and you start with little or no equity. If prices dip, you could owe close to what the home is worth for a while, which matters if you might need to sell in the first few years. With assistance that has its own monthly payment, budget for that too. For most buyers who plan to stay put, it's still a great trade: you stop paying rent years sooner. Just go in with the full monthly number, not only the cash-to-close number.
Try your own numbers below. The calculator starts at $350,000 on FHA with 3.5% down.