FHA Loans in Utah: Your Complete 2026 Guide
FHA loans are the most common financing choice for Utah first-time buyers: 3.5% down, a 580 credit score minimum, and they pair with most of Utah's down payment assistance programs. Combine them and what you need at closing can drop considerably.
Why Choose an FHA Loan?
Government-backed — which is why lenders can offer lower credit thresholds and higher DTI allowances than conventional loans
Low Down Payment
Put just 3.5% down—on a $350,000 home, that's only $12,250 instead of $70,000 for a conventional 20% down payment.
Flexible Credit
FHA loans accept lower credit scores than conventional loans. A 580 score qualifies for 3.5% down, and even 500+ may qualify with 10% down.
Higher DTI Allowed
Debt-to-income ratios up to 43-50% may be approved, helping buyers who have student loans, car payments, or other debts.
Gift Funds Welcome
Your entire down payment can come from gift funds from family, employers, or approved down payment assistance programs.
Lower Interest Rates
Because FHA loans are government-backed, lenders often offer competitive interest rates even for borrowers with lower credit.
Assumable Loans
FHA loans are assumable, meaning a qualified buyer could take over your loan terms—a valuable feature if rates rise.
FHA Loan Requirements in Utah
Credit Requirements
- ✓580+ score for 3.5% down payment
- ✓500-579 score requires 10% down
- ✓No minimum score for manual underwriting
- ✓Bankruptcy: 2 years since discharge (Ch. 7)
- ✓Foreclosure: 3 years since completion
- ✓Collections don't automatically disqualify
Income & Employment
- ✓Steady employment history (2 years typical)
- ✓Income must be documented and verifiable
- ✓Self-employment income averaged over 2 years
- ✓Gap in employment may require explanation
- ✓Part-time/seasonal income may count with history
- ✓Debt-to-income ratio up to 43-50%
Property Requirements
- ✓Must be primary residence
- ✓1-4 unit residential properties
- ✓Condos must be FHA-approved
- ✓Property must meet FHA safety standards
- ✓Appraisal by FHA-approved appraiser
- ✓Some repairs may be required before closing
2026 FHA Loan Limits by Utah County
Maximum loan amounts for FHA mortgages in Utah
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Salt Lake County | $498,257 | $637,950 | $771,125 | $958,350 |
| Utah County | $498,257 | $637,950 | $771,125 | $958,350 |
| Davis County | $498,257 | $637,950 | $771,125 | $958,350 |
| Weber County | $498,257 | $637,950 | $771,125 | $958,350 |
| Washington County | $498,257 | $637,950 | $771,125 | $958,350 |
*Limits updated annually. Contact us for current limits in your area.
FHA vs. Conventional Loans
Compare key features to find the right loan for your situation
| Feature | FHA | Conventional |
|---|---|---|
| Minimum Down Payment | 3.5% | 3-5% |
| Minimum Credit Score | 580 (500 with 10% down) | 620-640 |
| Mortgage Insurance | Required for life of loan* | Removable at 80% LTV |
| Upfront MI Premium | 1.75% (can be financed) | None |
| Max DTI Ratio | 43-50% | 36-45% |
| Gift Funds | 100% of down payment | Varies by program |
| Property Standards | Stricter requirements | Standard appraisal |
| Seller Concessions | Up to 6% | Up to 3-9% |
*FHA MIP can be removed by refinancing to a conventional loan when you have 20% equity
FHA Mortgage Insurance Explained
Understanding the cost of FHA mortgage insurance premiums (MIP)
Upfront MIP (UFMIP)
of loan amount, typically financed into your loan (added to your balance)
Annual MIP
of loan amount, divided by 12 and added to your monthly payment
Example: $300,000 Loan
How to Get an FHA Loan in Utah
Get Pre-Approved
Submit financial documents and get pre-approved to know your budget
Find Your Home
Search for FHA-eligible properties within loan limits
Make an Offer
Submit your offer with pre-approval letter
FHA Appraisal
FHA-approved appraiser evaluates property value and condition
Underwriting
Lender verifies all information and issues loan approval
Close on Home
Sign documents, pay closing costs, and get your keys!
✦ Real Client Stories
What Our Clients Say
Ready to Apply for an FHA Loan?
We work through FHA loans and Utah's DPA programs constantly — most buyers end up with better numbers than they expected. Takes about 15 minutes to get a real picture of where you stand.