FHA Loans in Utah
FHA loans have been helping people become homeowners since 1934. With low down payments and flexible credit requirements, it's one of the best programs for first-time buyers.
Benefits of an FHA Loan
Low Down Payment
Your down payment can be as low as 3.5% of the purchase price.
Easy Credit Qualifying
FHA is more lenient on credit history than conventional loans.
Low Closing Costs
Many closing costs and fees can be rolled into the loan or paid by the seller.
Flexible Funding Sources
Use personal savings, gifts, grants, or seller contributions.
FHA Loans in Utah: A Complete Guide
FHA loans in Utah are one of the most popular mortgage options for home buyers who want a low down payment and flexible qualifying standards. Backed by the Federal Housing Administration, FHA loans are designed to help borrowers who may not qualify for conventional financing — including first-time home buyers, those rebuilding credit, and families with moderate incomes.
At the Tim Hawkes Team, we specialize in FHA loans in Utah and have helped hundreds of families across Davis, Weber, Salt Lake, and Utah counties secure FHA financing. Whether you're buying your first home or looking to take advantage of FHA's flexible credit requirements, our Clearfield-based team is here to guide you through every step of the process.
With access to over 100 investors, we shop your FHA loan across a massive network to find the most competitive rates and lowest closing costs available. Our in-house operations mean faster processing and on-time closings — so you can move into your new Utah home without delays.
Utah FHA Loan Requirements
Understanding the Utah FHA loan requirements is the first step toward homeownership. Here are the key qualifications:
Credit Score
Minimum 580 for 3.5% down payment. Scores 500–579 may qualify with 10% down.
Down Payment
As low as 3.5% of the purchase price. Can come from savings, gifts, grants, or DPA programs.
Debt-to-Income Ratio
Generally up to 43% DTI, though higher ratios may be approved with compensating factors.
Employment & Income
Steady employment history (typically 2 years). Income must be verifiable and sufficient for the payment.
Property Requirements
The home must be your primary residence and meet FHA appraisal and safety standards.
Mortgage Insurance
1.75% upfront MIP (financeable) plus 0.55% annual MIP paid monthly for the life of the loan.
How Do FHA Loans Work?
The Federal Housing Administration (FHA) — which is part of HUD — insures the loan, so your lender can offer you a better deal. Because the loan is insured, lenders can be more lenient on areas such as credit, funds to close, and co-borrowers.
Most loans use credit scoring in the underwriting process. While a high credit score helps, a low score is not automatically cause for denial with FHA. If your credit scores are lower, we can help you demonstrate your ability and willingness to pay the loan back by looking at your most recent 12 to 24 months of payment history.
Special FHA Programs
- Fixer-Upper (203k): Buy a home, fix it up, and include all the repair costs in one loan. Learn about FHA 203k loans →
- Energy-Efficient Mortgages: Include the costs of energy improvements into your FHA loan.
- Manufactured Housing: FHA has financing options for mobile homes and factory-built housing.
FHA vs Conventional Loans in Utah
Choosing between an FHA loan and a conventional loan in Utah depends on your credit score, down payment, and financial goals. FHA loans accept lower credit scores (580 vs 620 for conventional) and require just 3.5% down, but they come with mortgage insurance for the life of the loan. Conventional loans require higher credit but allow you to drop mortgage insurance once you reach 20% equity.
For first-time buyers with limited savings or lower credit scores, FHA is often the better choice. For buyers with strong credit and larger down payments, conventional may save money over the long term. The Tim Hawkes Team can run both scenarios side-by-side and help you pick the option that saves you the most.
Compare all loan options →Combine FHA with Utah Down Payment Assistance
One of the biggest advantages of FHA loans in Utah is that they can be combined with down payment assistance programs. The Utah Housing Corporation (UHC) offers programs that provide a second mortgage or grant to cover your 3.5% FHA down payment and closing costs. Many of these programs are available statewide and are specifically designed for low-to-moderate income borrowers and first-time buyers.
When you combine an FHA loan with DPA, it's possible to buy a home in Utah with very little — or even zero — out-of-pocket cash. Ask the Tim Hawkes Team about current UHC programs and eligibility requirements.
First-Time Home Buyer FHA Programs
FHA loans are the most popular mortgage choice for first-time home buyers in Utah — and for good reason. The low down payment, flexible credit requirements, and ability to use gift funds or DPA make FHA the most accessible path to homeownership. If you're buying your first home, start with our calculator to see what you can afford.
Frequently Asked Questions About FHA Loans in Utah
What is the minimum credit score for FHA loans in Utah?
The minimum credit score is 580 with 3.5% down. Scores between 500–579 may qualify with 10% down. We work with borrowers across a wide range of credit profiles to find FHA solutions.
How much is the FHA down payment in Utah?
As low as 3.5% of the purchase price. For a $400,000 home, that is $14,000 down. This can come from savings, gift funds, employer programs, or Utah down payment assistance.
Can I use down payment assistance with an FHA loan in Utah?
Yes. FHA loans pair well with Utah Housing Corporation (UHC) programs and local DPA grants that can cover part or all of your down payment and closing costs.
What are FHA loan limits in Utah?
FHA loan limits vary by county. Most Utah counties follow the standard floor limit for single-family homes. Higher-cost areas may have elevated limits. Contact us for current limits in your county.
How much is FHA mortgage insurance?
FHA requires an upfront premium of 1.75% (financeable) and an annual premium of 0.55% paid monthly. MIP is required for the life of the loan on most FHA mortgages with less than 10% down.
Can I get an FHA loan if I owned a home before?
Yes. FHA loans are not limited to first-time buyers. Anyone who meets the credit, income, and property requirements can use FHA to purchase a primary residence.
What is the FHA 203k renovation loan?
The FHA 203k lets you buy a home and finance repairs into a single mortgage. Both the purchase price and renovation costs are rolled into one FHA-insured loan with one monthly payment.
See If You Qualify
Even if you've been turned down for conventional financing, FHA might be the solution you need.
Start Your FHA ApplicationHave questions about FHA?
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