USDA Loans in Utah
Available to millions of Americans. 100% financing with zero down payment required for eligible rural and suburban homes.
What is a USDA Loan?
In the past, USDA Loans were often called "farmer's loans," but times have changed. Almost anyone outside of a major metropolitan area looking to purchase a home can qualify for a USDA loan. With the USDA loan, many families struggling to come up with a 20% down payment are still able to get a zero-down home loan.
USDA Loans in Utah: What You Need to Know
USDA home loans in Utah are one of the most powerful zero down payment options available today. Backed by the United States Department of Agriculture, these loans are designed to promote homeownership in rural and suburban communities — and a surprising number of Utah cities qualify. If you're looking for a USDA loan in Utah, the Tim Hawkes Team can help you navigate eligibility requirements, income limits, and the application process from start to finish.
Unlike conventional mortgages that require a down payment, USDA loans offer 100% financing. That means you can buy a home in Utah with zero money down. The guarantee fees on USDA loans are also lower than FHA mortgage insurance, which translates to lower monthly payments for qualifying borrowers. For families in USDA eligible areas in Utah, this program can make the difference between renting and owning.
The Tim Hawkes Team at Cornerstone Home Lending is based in Clearfield, Utah — right in the heart of USDA-eligible territory. We've helped hundreds of Utah families take advantage of this incredible program, and we can check any address for USDA eligibility in seconds.
Do I Qualify?
Eligibility varies based on a few key factors. Because the rules can be nuanced, it is incredibly important that you speak with one of our local experts to verify your eligibility.
Location
The home must be located in a USDA-eligible rural or suburban area. Many areas just outside major cities qualify! Check eligibility for Roy, Clearfield, Layton, and more.
Income Limits
Your total household income cannot exceed the local limits set by the USDA for your specific county and family size.
USDA loans can be combined with down payment assistance programs in many Utah cities for even more savings.
USDA Eligible Areas in Utah
You might be surprised how many Utah cities fall within USDA-eligible zones. While Salt Lake City proper and parts of Provo are excluded, many communities in Davis, Weber, and Box Elder counties qualify. Here are some of the most popular USDA eligible areas in Utah where we help buyers every day:
Eligibility can vary by specific address. Contact us to verify any property.
USDA vs FHA vs VA: Which Zero or Low Down Payment Loan is Right for You?
All three programs help Utah buyers get into a home with little or no money down, but they have key differences. USDA loans require zero down payment and have the lowest guarantee fees, but are limited to eligible rural areas with income caps. FHA loans require 3.5% down but have no location or income restrictions. VA loans offer zero down with no PMI but are reserved for eligible veterans and military members.
Not sure which program fits your situation? Our team can compare all three side-by-side and help you choose the best path to homeownership in Utah.
Combine USDA with Down Payment Assistance
Even though USDA loans already require zero down payment, you may still have closing costs to cover. The great news is that USDA loans can be combined with Utah down payment assistance programs to help offset those costs. Programs through UHC and local agencies can provide grants or secondary financing to make your out-of-pocket costs as low as possible.
If you're a first-time home buyer, you may qualify for additional incentives and programs specifically designed for new homeowners in Utah.
Frequently Asked Questions About USDA Loans in Utah
Which Utah cities are USDA eligible?
Many Utah cities qualify for USDA loans, including Roy, Clearfield, Layton, Syracuse, Clinton, West Point, Kaysville, Farmington, and parts of Ogden. Eligibility depends on the specific property address — our team can check any address for you instantly.
Can I get a USDA loan in Clearfield, Utah?
Yes, many areas in and around Clearfield are USDA eligible. Our office is located right in Clearfield, and we help local families take advantage of zero down payment USDA home loans regularly.
What are the income limits for USDA loans in Utah?
Income limits vary by county and household size, generally capped at 115% of the area median income. For a family of four in Davis County, this is typically around $103,500. Limits are updated annually by the USDA.
Can I combine USDA with down payment assistance?
Yes. USDA loans can often be combined with Utah down payment assistance programs to cover closing costs. Programs through UHC and local agencies may provide grants or forgivable loans alongside your USDA mortgage.
What credit score do I need for a USDA loan in Utah?
Most lenders require a 640 credit score for automated approval. Scores below 640 may qualify through manual underwriting with compensating factors such as low debt ratios or reserves.
Do USDA loans have mortgage insurance?
USDA loans have a guarantee fee instead of traditional mortgage insurance. There is a 1% upfront fee (financeable) and a 0.35% annual fee — significantly lower than FHA mortgage insurance premiums.
Let's Check Your Area
Not sure if the house you're looking at is in a USDA eligible area? We can check the exact address for you in seconds.
Start Pre-ApprovalOr call to check an address
(801) 820-7620