Low or no-down-payment loan types
FHA loans allow as little as 3.5% down with a credit score of 580 or higher, and they're more forgiving on credit history than conventional loans. Conventional loans now go as low as 3% down for qualified first-time buyers through Fannie Mae and Freddie Mac programs.
If you're an eligible veteran or active-duty service member, VA loans allow 0% down with no ongoing mortgage insurance. In my opinion that's one of the best benefits out there if you qualify. USDA loans also allow 0% down in eligible rural and some suburban areas, and more of Utah qualifies than people expect, so it's worth checking a specific address.
Utah Housing Corporation (UHC) programs
Utah Housing Corporation runs several below-market-rate loan programs for Utah buyers, paired with down payment assistance. The FirstHome Loan is their main first-time buyer program, combining a below-market rate with assistance. The Score Loan is built for buyers with more modest credit (typically 620-659) who still want help getting in.
The down payment assistance is usually set up as a second mortgage, up to about 6% of your loan amount (capped around $27,500). Depending on the structure, it's either a low-rate loan you pay alongside your first mortgage or a deferred loan with no monthly payment. Most UHC programs also require a short homebuyer education course, usually just a few hours and often online, plus income and price limits that vary by county.
Worth knowing: Utah has also funded a First-Time Homebuyer Assistance Program offering up to $20,000, interest-free and payment-free, that can go toward a rate buydown, down payment, or closing costs. It has historically favored newly built homes, and funding changes year to year.
City and local programs
Several Utah cities run their own down payment assistance on top of the state programs, often in the $5,000 to $15,000 range. These are usually income-restricted, and some are forgivable loans if you stay in the home a set number of years. They can often be combined with UHC assistance, as long as the local program agrees to sit in second position behind the other loans, which some do.
What I'd actually do
Program availability and funding change, sometimes year to year, sometimes faster. So rather than treat any number here as guaranteed, I'd connect you with a lender who works with Utah Housing Corporation regularly. They can tell you exactly what you qualify for based on your income, credit, and where you want to buy. I'm happy to make that introduction and sit in on the conversation if that helps.
And to be upfront, I'm not a lender. Treat this as a starting point for that conversation, not the final word on what you'll qualify for.
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