USDA Loans in Utah: Buy a Home With Zero Down Payment
A lot of Utah buyers don't realize they qualify for a USDA loan. Tooele, Grantsville, Hurricane, La Verkin, most of Cache County — USDA-eligible, with zero down, no traditional PMI, and mortgage insurance that runs about 60% cheaper than FHA's.
What USDA Actually Gets You
Zero down and lower monthly costs — for buyers who qualify in the right areas
Zero Down Payment
Buy a home with no money down in qualifying Utah areas. On a $375,000 home, that's $13,125 saved vs. FHA's 3.5% — in your pocket on closing day.
No Traditional PMI
Forget expensive monthly PMI. USDA replaces it with a low 0.35% annual fee — roughly 60% cheaper than FHA's mortgage insurance premium.
Competitive Rates
Because the federal government guarantees USDA loans, lenders offer interest rates comparable to conventional loans — even for buyers with modest credit.
Finance Closing Costs
If the home appraises above the purchase price, USDA allows closing costs to be rolled into the loan — further reducing cash needed at closing.
Generous Income Limits
USDA limits are set at 115% of area median income — higher than most down payment assistance programs. Many two-income Utah households qualify.
Seller Concessions OK
Sellers can cover up to 6% of the purchase price toward your closing costs — combining with zero down makes USDA the lowest cash-to-close loan available.
USDA-Eligible Areas in Utah
Dozens of Utah communities qualify — including several suburbs close to the Salt Lake and Utah County metro areas. Eligibility is address-specific, not city-wide, so always run the property address through the USDA map before writing an offer.
Wasatch Front Suburbs
Many outer suburbs qualify — check the map for exact addresses
- ✓Tooele
- ✓Grantsville
- ✓Erda
- ✓Stockton
- ✓Rush Valley
- ✓Vernon
- ✓Ophir
Northern Utah
Cache & Box Elder counties have strong USDA coverage
- ✓Smithfield
- ✓Richmond
- ✓Hyrum
- ✓Wellsville
- ✓Tremonton
- ✓Bear River City
- ✓Garland
- ✓Brigham City (outskirts)
St. George / Southern Utah
St. George proper doesn't qualify — but many surrounding towns do
- ✓Hurricane
- ✓La Verkin
- ✓Apple Valley
- ✓Leeds
- ✓Hildale
- ✓Veyo
- ✓Enterprise
Central Utah
Excellent USDA coverage throughout
- ✓Richfield
- ✓Salina
- ✓Ephraim
- ✓Manti
- ✓Delta
- ✓Fillmore
- ✓Nephi
- ✓Levan
Eastern Utah
Rural communities with strong USDA eligibility
- ✓Moab
- ✓Price
- ✓Helper
- ✓Roosevelt
- ✓Duchesne
- ✓Vernal
- ✓Manila
Rural Communities
Most small Utah towns and rural areas qualify
- ✓Cedar City (some areas)
- ✓Panguitch
- ✓Kanab
- ✓Blanding
- ✓Monticello
- ✓Escalante
- ✓Torrey
⚠️ Always verify the specific address — not just the city name
USDA eligibility is determined address-by-address, not by city. One street may qualify while the next doesn't. Always check the official USDA eligibility map before making an offer.
Two Types of USDA Loans
The Guaranteed Loan is what most Utah first-time buyers use
Section 502 Guaranteed Loan
The government guarantees 90% of the loan, so approved private lenders (banks, credit unions, mortgage companies) can offer it with competitive rates and terms.
- ✓Apply through any USDA-approved lender
- ✓Up to 115% of area median income
- ✓No loan limit — based on your income and lender approval
- ✓Process is similar to a regular mortgage + 1–2 weeks for USDA conditional commitment
- ✓Most first-time buyers use this option
Section 502 Direct Loan
The USDA lends directly — no private bank involved. Designed for very low to low-income buyers who don't qualify for traditional financing.
- ✓Apply directly through USDA Rural Development office
- ✓For households at 50–80% of area median income
- ✓Payment assistance available to reduce effective rate to as low as 1%
- ✓Longer processing time (60–90 days)
- ✓Income limits are stricter than Guaranteed program
USDA Loan Requirements
🏡 Property Requirements
- ✓Located in a USDA-designated rural or suburban eligible area
- ✓Must be the buyer's primary residence
- ✓Single-family homes, condos (USDA-approved), some manufactured homes
- ✓Must meet USDA/HUD minimum property standards
- ✓No income-producing acreage or commercial use
💼 Income Requirements
- ✓Total household income cannot exceed 115% of area median income (AMI)
- ✓All household members' income counts — not just borrowers on the loan
- ✓Most Utah counties: up to ~$112,450 (1–4 people) / ~$148,450 (5–8 people)
- ✓Income limits vary by county — check the USDA income limit tool
- ✓Some deductions allowed (dependents, child care, disability)
📊 Credit & Financial Requirements
- ✓640+ credit score for streamlined processing (recommended)
- ✓580–639 may qualify with manual underwriting
- ✓12 months of on-time rent/mortgage payment history
- ✓Bankruptcy must be discharged 3+ years
- ✓Foreclosure or short sale must be 3+ years ago
👤 Borrower Requirements
- ✓US citizen, non-citizen national, or qualified alien
- ✓Must occupy the property as primary residence
- ✓Cannot own another adequate, safe, and sanitary dwelling
- ✓Must have dependable income (employment, self-employment, retirement)
- ✓Legal capacity to incur the loan obligation
USDA vs. FHA vs. Conventional vs. VA
How USDA stacks up against every other loan type
| Feature | USDA | FHA | Conventional | VA |
|---|---|---|---|---|
| Down Payment | 0% | 3.5% | 3–20% | 0% |
| Mortgage Insurance | 0.35%/yr annual fee | 0.85%/yr MIP | Required to 80% LTV | None |
| Upfront Fee | 1% guarantee fee | 1.75% UFMIP | None | 1.25–3.3% |
| Credit Score | 640+ | 580+ | 620–680 | 580–620 (lender) |
| Income Limit | 115% AMI (~$112K) | None | None | None |
| Property Type | Rural/suburban eligible | Primary only | Any | Primary only |
| Seller Concessions | Up to 6% | Up to 6% | Up to 3–9% | Up to 4% |
| Who It's Best For | Rural/suburban buyers | Low credit / city buyers | Strong credit buyers | Veterans/military |
How to Get a USDA Loan in Utah
Check Area Eligibility
Visit the USDA eligibility map (eligibility.sc.egov.usda.gov) and enter the property address. Takes 30 seconds — do this before house hunting.
Check Income Limits
Verify all household income is under the county limit for your household size. Include everyone living in the home — not just loan borrowers.
Get Pre-Approved
Apply with a USDA-approved lender. Most major banks and mortgage companies participate. Bring income, employment, and asset documents.
Find Your Home
House-hunt in USDA-eligible areas with an agent familiar with USDA requirements. Verify each address on the eligibility map before writing offers.
USDA Conditional Commitment
After your offer is accepted, your lender submits the file to USDA for a conditional commitment. This adds 1–2 weeks vs. a conventional loan.
Close on Your Home
Sign documents, pay your (minimal) closing costs, and get your keys — zero down payment required!
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✦ City-by-City Guide
USDA-Eligible Cities in Utah: 2026 Quick Reference
USDA eligibility is address-specific — but this table gives you a fast read on the most-searched Utah cities. Always verify the exact address at eligibility.sc.egov.usda.gov before signing a contract.
✅ Eligible (2026)
| City | County |
|---|---|
| Tooele | Tooele County |
| Grantsville | Tooele County |
| Stansbury Park | Tooele County |
| Hurricane | Washington County |
| La Verkin | Washington County |
| Ivins | Washington County |
| Smithfield | Cache County |
| Richmond | Cache County |
| Hyrum | Cache County |
| Tremonton | Box Elder County |
| Brigham City | Box Elder County |
| Moab | Grand County |
| Price | Carbon County |
| Cedar City | Iron County |
| Richfield | Sevier County |
| Nephi | Juab County |
| Manti | Sanpete County |
| Ephraim | Sanpete County |
| Delta | Millard County |
❌ Ineligible (metro/urban)
| City | County |
|---|---|
| Salt Lake City | Salt Lake |
| West Valley City | Salt Lake |
| West Jordan | Salt Lake |
| Sandy / Draper | Salt Lake |
| South Jordan | Salt Lake |
| Lehi | Utah County |
| Saratoga Springs | Utah County |
| Eagle Mountain | Utah County |
| American Fork | Utah County |
| Provo / Orem | Utah County |
| Ogden | Weber County |
| Layton | Davis County |
| Bountiful | Davis County |
| St. George (core) | Washington County |
| Logan (core) | Cache County |
⚠️ Saratoga Springs and Eagle Mountain lost eligibility in 2023 — verify any growing suburb on the official map.
✦ Income Limits
USDA Income Limits by Utah County — 2026
USDA counts ALL household income — not just the borrowers on the loan. Every adult living in the home counts, including non-borrower spouses and adult children.
| County | 1–4 Person Household | 5–8 Person Household |
|---|---|---|
| Salt Lake County | $112,450 | $148,450 |
| Utah County | $112,450 | $148,450 |
| Davis County | $112,450 | $148,450 |
| Weber County | $103,500 | $136,600 |
| Washington County | $103,500 | $136,600 |
| Cache County | $103,500 | $136,600 |
| Tooele County | $103,500 | $136,600 |
| Box Elder County | $95,850 | $126,550 |
| Iron County (Cedar City) | $95,850 | $126,550 |
| Grand County (Moab) | $95,850 | $126,550 |
| Carbon / Sanpete / Sevier | $82,550 | $108,950 |
| Millard / Juab / other rural | $82,550 | $108,950 |
What Counts as Household Income
- All adult borrowers' income
- Spouse's income (even if not on loan)
- Adult children living in the home (18+)
- Rental income from other properties
- Self-employment income (2-year average)
What Does NOT Count
- Income from minor children (under 18)
- Full-time student income (18–25, with limits)
- Foster care payments
- Disability payments for minor dependents
Figures are 2026 estimates at 115% AMI. Official limits update annually at rd.usda.gov. Verify with your lender before applying.
Find Out If You Qualify for Zero Down
A lot of buyers come in thinking they don't qualify, and about half of them are wrong. Takes 15 minutes to find out.