How Much Down Payment Do You Need to Buy a Home in Utah?

Down payment data: National Association of Realtors, 2025 Profile of Home Buyers and Sellers (released November 2025). Home price data: Redfin Utah housing market data, June 2026. Loan minimums: FHA, VA, and USDA program guidelines, 2026. Down payment assistance: Utah Housing Corporation programs, via The Mortgage Reports, 2026. Page last updated August 16, 2026.

How much do most Utah buyers actually put down?

More than the minimum, but a lot less than 20%. Nationally, the median down payment in 2025 was 19% across all buyers, 10% for first-time buyers and 23% for repeat buyers using their last sale's equity, according to NAR's 2025 Profile of Home Buyers and Sellers. That's the highest first-time-buyer down payment NAR has recorded since 1989. Most buyers are stretching to put more down because it lowers the monthly payment in a market with higher rates, not because a lender is requiring it. The requirement itself is much lower, and that gap is the whole point of this page.

What's the actual minimum down payment for each loan type?

It depends which loan you use, not on some universal 20% rule.

• Conventional loan: 3% down. Fannie Mae and Freddie Mac both run 3%-down programs (HomeReady and Home Possible) for qualifying buyers.
• FHA loan: 3.5% down. Requires a credit score of at least 580. Below that, down to 500, FHA still allows it, but the minimum jumps to 10% down.
• VA loan: $0 down. Available to eligible veterans, active-duty service members, and some surviving spouses. No down payment requirement at all for most eligible borrowers.
• USDA loan: $0 down. For eligible rural and some suburban properties, with household income limits. Much of Utah outside the immediate Wasatch Front urban core qualifies.

The 20% figure people quote isn't a minimum. It's the amount that lets you skip private mortgage insurance on a conventional loan. That's a real cost worth understanding, covered next, but it isn't a requirement to buy a home.

What does a low down payment actually cost you?

On a conventional loan, putting down less than 20% means paying private mortgage insurance, PMI, until you build enough equity to drop it. PMI typically runs 0.46% to 1.5% of your loan amount per year, split into your monthly payment, according to Experian. On a $400,000 loan, that's roughly $1,840 to $6,000 a year, or about $153 to $500 a month, and it shrinks every year as your balance drops. FHA loans charge a similar mortgage insurance premium that, in most cases, sticks around for the life of the loan rather than dropping off automatically. VA and USDA loans skip monthly mortgage insurance entirely, though VA charges a one-time funding fee at closing instead. None of this is a reason to avoid a low down payment. It's just the real tradeoff, in dollars, so you can weigh it against tying up cash you might need.

What down payment assistance programs exist in Utah?

Utah Housing Corporation runs the two main ones, and both work as a second loan stacked on top of your first mortgage rather than free money.

• FirstHome Loan: up to 6% of your loan amount toward a down payment and closing costs, paired with a conventional, VA, or FHA first mortgage. Requires a 660 minimum credit score and first-time buyer status, per The Mortgage Reports' 2026 Utah first-time buyer guide.
• Score Loan: up to 4% of your loan amount toward a down payment and closing costs, also a 660 minimum credit score, open to first-time and repeat buyers.

There's also a separate state program, S.B. 240, a zero-interest second mortgage up to $20,000 for first-time buyers on new construction under a price cap. I've written about how that one works in detail, including the builder-lender traps to watch for, in a separate post on using the $20k grant in Eagle Mountain. All of these programs still require you to qualify for the first mortgage on your own. They lower the cash you need at closing. They don't replace the underwriting.

What does 3% vs 10% vs 20% down actually look like in dollars?

Take Utah's statewide median home price, $534,273 in June 2026, per Redfin's Utah housing market data. Here's what each down payment tier actually costs in cash at closing.

Is a bigger down payment always the right move?

No, and I'll tell you the honest version instead of the sales version. A bigger down payment lowers your monthly payment and can get you out of mortgage insurance sooner. But it also ties up cash you might need for moving costs, repairs, or an emergency fund, and once that money's in the house, it's not liquid anymore. If a down payment assistance program or a lower minimum gets you into a home years sooner while you keep a real cash cushion, that can be the smarter move, not the weaker one. If you have the cash and the goal is the lowest possible monthly payment, put more down. There's no single right answer here. It depends on what you're actually optimizing for.

Down payment options compared

Loan type	Minimum down	On a $534,273 home	Mortgage insurance	Who qualifies
Conventional	3%	$16,028	PMI until 20% equity	Most borrowers meeting credit/income guidelines
FHA	3.5%	$18,700	MIP, usually life of loan	Credit score 580+ (500-579 needs 10% down)
VA	$0	$0	None (one-time funding fee)	Eligible veterans, active duty, some surviving spouses
USDA	$0	$0	Annual guarantee fee	Eligible rural/suburban areas, income limits
Conventional + UHC FirstHome	as low as 0%	up to $32,056 covered	PMI until 20% equity	First-time buyer, 660+ credit score

Sources: down payment minimums, FHA/VA/USDA program guidelines, 2026. Home price, Redfin Utah housing market data, June 2026. Assistance program terms, Utah Housing Corporation via The Mortgage Reports, 2026. Figures are estimates. Confirm your exact number with a licensed lender before you budget around it.

Takeaway: the gap between the minimum down payment and the median down payment Utah buyers actually put down is thousands of dollars, and a state assistance program can close most or all of that gap for a qualifying first-time buyer.

How do you find out your real number?

Talk to a licensed lender before you talk to me about homes. A lender will run your actual credit, income, and debt, and tell you which loan types you qualify for and what your real down payment and monthly payment look like. That number is specific to you. Nothing on this page is a substitute for it. Once you have that number, I can help you find homes that actually fit it, instead of guessing at a budget from a percentage you saw online.

What should you actually do with this?

Don't rule yourself out of buying because you assumed you needed 20% down. Start with a lender conversation to find your real minimum, ask specifically about Utah Housing Corporation's FirstHome and Score programs if you're a first-time buyer, and decide how much of your own cash you actually want to put in versus keep in reserve. Then we can talk about what that budget actually buys on the Wasatch Front right now.

I'll tell you the number you need to hear, not the one you want to hear. If a bigger down payment doesn't make sense for your situation, I'll say so.

Talk with Cory Salisbury, Realtor with Simple Choice Real Estate, helping Utah families since 2014.

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General market education, not mortgage, financial, tax, or legal advice. Cory Salisbury is not a mortgage broker or lender. Down payment amounts, mortgage insurance costs, and program terms are estimates based on 2026 program guidelines and change; confirm current figures and your personal eligibility with a licensed lender. Home price is a dated snapshot from a third-party market report and isn't a guarantee or prediction of future value. Cory Salisbury, Realtor, Simple Choice Real Estate. Equal Housing Opportunity.