VA Loans in Utah: Zero Down Payment, No PMI for Veterans
If you've served, you have access to one of the better loan deals out there —zero down, no mortgage insurance, and rates that typically run below conventional. This covers how VA loans work in Utah, what the funding fee actually costs, and how to use your COE.
VA Loan Benefits You've Earned
Zero down plus no PMI adds up to real savings — especially given Utah's home prices
Zero Down Payment
Buy a home with absolutely no down payment required. On a $400,000 home, that's $80,000 you don't need to save compared to a 20% conventional loan.
No PMI Ever
Unlike FHA and conventional loans with less than 20% down, VA loans never require private mortgage insurance—saving hundreds per month.
Competitive Rates
VA loans typically offer interest rates 0.25-0.5% lower than conventional loans because they're backed by the federal government.
Flexible Credit
The VA doesn't set a minimum credit score. While lenders have overlays (typically 580-620), VA loans are more forgiving than conventional options.
No Loan Limits*
Veterans with full entitlement have no loan limit—borrow as much as you qualify for. This is huge in Utah's higher-priced markets.
Reusable Benefit
Your VA loan benefit can be used multiple times throughout your life. Sell one home, use it again. It's not a one-time benefit.
Who Qualifies for VA Loans?
Active Duty Service Members
- ✓Currently serving on active duty
- ✓Minimum 90 continuous days of service
- ✓Statement of service from commanding officer
- ✓Not required to complete full term before applying
Veterans
- ✓90+ consecutive days during wartime
- ✓181+ consecutive days during peacetime
- ✓Discharged under conditions other than dishonorable
- ✓Service during Gulf War era: 24 months or full period called to active duty
National Guard & Reserves
- ✓6+ years in Guard/Reserves, OR
- ✓90+ days of active duty service
- ✓Honorable discharge or still serving
- ✓Title 10 or Title 32 activation counts
Surviving Spouses
- ✓Spouse died in service or from service-connected disability
- ✓Un-remarried surviving spouse
- ✓Spouse missing in action (MIA)
- ✓Spouse prisoner of war (POW)
VA Funding Fee Rates
One-time fee that can be financed into your loan (waived for many veterans)
| Loan Type | Regular Military | Reserves/NG |
|---|---|---|
| First Use (0% down) | 2.15% | 2.15% |
| First Use (5% down) | 1.5% | 1.5% |
| First Use (10%+ down) | 1.25% | 1.25% |
| Subsequent Use (0% down) | 3.3% | 3.3% |
| Subsequent Use (5% down) | 1.5% | 1.5% |
| Subsequent Use (10%+ down) | 1.25% | 1.25% |
Who Is Exempt From the Funding Fee?
- ✓Veterans receiving VA disability compensation
- ✓Veterans entitled to receive disability compensation (pending rating)
- ✓Surviving spouses of veterans who died in service or from service-connected disabilities
- ✓Active duty Purple Heart recipients
- ✓Veterans rated eligible for compensation based on pre-discharge exam
VA vs. FHA vs. Conventional Loans
How VA stacks up against FHA and conventional, by the numbers
| Feature | VA | FHA | Conventional |
|---|---|---|---|
| Down Payment | 0% | 3.5% | 3-20% |
| Mortgage Insurance | None | Required (life of loan) | Required until 80% LTV |
| Credit Score | 580-620 (lender) | 580+ | 620-680 |
| Funding/Upfront Fee | 1.25-3.3% | 1.75% | None |
| Loan Limits | None* | $498,257 | $766,550 |
| Property Types | Primary residence | Primary residence | Any |
| Seller Concessions | Up to 4% | Up to 6% | Up to 3-9% |
*For veterans with full entitlement. Partial entitlement may have limits.
Serving Utah's Military Community
We help service members at Utah's military installations
How to Get a VA Loan in Utah
Get Your COE
Obtain Certificate of Eligibility from VA or through your lender
Get Pre-Approved
Submit financial documents and verify your eligibility
Find Your Home
Search for VA-eligible properties that meet your needs
Make an Offer
Submit offer with pre-approval letter
VA Appraisal
VA-approved appraiser evaluates property value and condition
Close on Home
Sign documents and receive keys to your new home!
✦ Real Client Stories
What Our Clients Say
✦ Utah Military Community
Buying Near Hill AFB, Camp Williams & Dugway
Utah is home to three major installations. Each has its own housing market and VA loan dynamics — here's what to know before you start shopping.
| Installation | County | Primary Markets | Zero-Down Options |
|---|---|---|---|
| Hill Air Force Base | Davis County | Layton, Clearfield, Roy, Ogden, Syracuse | VA Loan |
| Camp Williams | Salt Lake / Utah County | Riverton, Herriman, Bluffdale, Lehi | VA Loan |
| Dugway Proving Ground | Tooele County | Tooele City, Grantsville | VA Loan + USDA |
Hill AFB — Davis County
Utah's largest employer (28,000+ personnel). Davis County ranks among Utah's highest VA loan volume counties. Sellers in Layton, Clearfield, and Roy are accustomed to VA offers. BAH for E-5 with dependents: ~$1,800–$2,100/month — your lender can use this as qualifying income. PCS to Hill AFB? You can start the VA process 90 days before your report date.
Camp Williams — National Guard
National Guard members with 6+ years of qualifying service or Title 10/Title 32 activation are VA-eligible. Primary housing market: Salt Lake County west side — Riverton, Herriman, Bluffdale. These areas are also competitive with strong conventional offers, so VA pre-approval is essential.
Dugway — Two Zero-Down Options
Dugway personnel typically live in Tooele City or Grantsville, both USDA-eligible areas. Dugway buyers have a rare advantage: both VA (zero down, no PMI) and USDA (zero down) may apply. For homes in Tooele City or Grantsville, standard VA appraisals apply normally — no clearance required.
✦ State Benefits
Utah Veteran Benefits That Stack With Your VA Loan
Your VA home loan benefit and Utah's state veteran benefits are separate programs. You get both.
Utah Property Tax Exemption
Utah reduces property taxes for qualifying veterans on their primary residence:
- Non-service-connected disabled veterans: $474/year credit (2026)
- Service-connected 10%–99%: scaled exemption
- Service-connected 100% (P&T): full property tax exemption — worth $3,000–$6,000+/year in Salt Lake County
File with your county assessor after closing. Bring your DD-214, VA disability rating letter, and proof of Utah residency.
Funding Fee Exemption
Veterans with ANY service-connected disability rating — even 10% — are exempt from the VA funding fee. On a $400,000 loan, the fee is $5,000–$13,200 depending on down payment and usage. Many veterans don't realize their rating qualifies them. Check your VA disability determination letter before closing.
Your Utah Veteran Savings Stack
- VA Loan: $0 down (saves $20K–$40K)
- No PMI: saves $150–$250/month vs. FHA
- Funding fee exemption (if disabled): saves $5K–$13K
- Property tax exemption: saves $474–$6,000+/year
- 5-year total savings vs. FHA: $50,000+
Ready to Use Your VA Benefit?
We work with Utah veterans from Hill AFB, Camp Williams, and Dugway regularly. If you want to know where your COE stands and what you'd qualify for, we can go through it in about 15 minutes.