What credit score do I need for an FHA loan in Utah?

The FHA minimum is 580 for the 3.5% down payment option, and 500 to 579 with 10% down. In practice most Utah lenders set their own floor at 600 to 620. If you are between 580 and 620, it is worth calling two or three lenders because overlays vary and some will work with you.

What are the FHA loan limits in Utah?

FHA limits are set per county each year by HUD. Salt Lake County and Utah County share a limit for a single-family home that sits comfortably above the national floor because of local prices, and Summit County's limit is considerably higher. The limits change every January, so check the HUD lookup tool or ask your lender for the current figure rather than relying on a number from last year.

Is there a VA loan limit in Utah?

Not if you have full entitlement. Since 2020, veterans with full entitlement can borrow with zero down at any price a lender will approve. Limits still apply if you have reduced entitlement because you have another VA loan outstanding or lost entitlement in a prior foreclosure. Your lender will pull your Certificate of Eligibility to see which applies.

How much is the VA funding fee?

For a zero-down purchase it is 2.15% of the loan amount for first-time use and 3.3% for subsequent use, as of 2026. Putting 5% down drops it to 1.5% and 10% down drops it to 1.25%. Veterans receiving VA disability compensation, Purple Heart recipients on active duty, and certain surviving spouses are exempt entirely. The fee is almost always rolled into the loan rather than paid in cash.

Do sellers in Utah avoid FHA and VA offers?

Some do, usually because of stories about strict appraisals or repair requirements. In a competitive situation an FHA or VA offer can be at a disadvantage against a conventional one. But in a balanced market, and on homes that have been listed more than a couple of weeks, well-structured FHA and VA offers win all the time. The key is a strong pre-approval, a clean offer, and an agent who can explain the loan to the listing side.

Can I use an FHA or VA loan with Utah Housing down payment assistance?

Yes. Utah Housing Corporation's FirstHome, HomeAgain, and Score programs all pair with FHA and VA first mortgages as well as conventional. The UHC second mortgage covers the down payment and closing costs on top of the FHA or VA loan, which is how many Utah buyers close with very little cash.

FHA and VA Loans in Utah: Requirements, Limits, and How to Win With One

Government-backed loans put a lot of Utah families into homes every year. FHA loans open the door for buyers with thinner credit or smaller savings, and VA loans remain the best mortgage product in the country for the veterans and service members who have earned them. Utah has a large veteran community, with Hill Air Force Base to the north, Camp Williams straddling the Salt Lake and Utah County line, and the Utah National Guard, so both products are well understood by local lenders, appraisers, and most listing agents.

This guide covers what each loan requires, what it costs, the county loan limit question, and how to write an offer that does not lose to a conventional buyer just because of the loan type. Program figures are as of 2026 and change annually; your lender's numbers win.

FHA loans in Utah

The Federal Housing Administration does not lend money. It insures loans made by regular lenders, which is why those lenders can accept lower credit scores and down payments.

Requirements

Requirement	FHA guideline
Minimum credit score	580 for 3.5% down; 500 – 579 with 10% down
Minimum down payment	3.5% of purchase price
Source of down payment	Your savings, or 100% gift from family, or down payment assistance
Debt-to-income ratio	Up to roughly 43% standard; up to 50% – 57% with strong compensating factors
Occupancy	Must be your primary residence within 60 days of closing
Property types	Single-family, townhome, FHA-approved condo, 2 – 4 units if you live in one
Seller concessions	Up to 6% of the purchase price

Lender overlays matter. Many Utah lenders will not go below 600 or 620 even though FHA allows 580. If your score is in that band, shop.

What FHA costs

FHA charges two kinds of mortgage insurance.

Upfront mortgage insurance premium (UFMIP): 1.75% of the loan amount, almost always rolled into the loan. On a $500,000 loan that is $8,750 added to your balance.
Annual mortgage insurance premium (MIP): roughly 0.55% of the loan per year for most buyers, paid monthly. On $500,000 that is about $229 a month. If you put down less than 10%, it stays for the life of the loan; at 10% or more, it drops off after 11 years.

The life-of-loan MIP is the main reason I steer buyers with a 680-plus score toward a conventional 3% or 5% down loan instead. Conventional mortgage insurance can be cancelled once you reach 20% equity, which on the Wasatch Front has often taken only a few years. FHA makes the most sense in the 580 to 660 credit range, or when your debt-to-income ratio is too high for conventional underwriting.

FHA loan limits

HUD sets a maximum FHA loan amount per county each January, based on local median prices. Salt Lake County and Utah County share a limit that covers the large majority of homes in cities like West Jordan, Taylorsville, Orem, Spanish Fork, and Springville, and a good share of homes in Lehi, Herriman, and Sandy. Summit County's limit is much higher because of Park City prices. Because the figures move every year, use HUD's county lookup or ask your lender for the current number before you set a search budget.

FHA appraisals and repairs

FHA appraisers check that the home meets HUD's minimum property standards. In Utah the items that come up most are peeling paint on homes built before 1978, missing handrails, a water heater without a proper pressure-relief line, a roof with very little remaining life, and broken windows. These must be fixed before closing, usually by the seller. On a well-kept home none of this is an issue. On a tired 1960s rambler it can be, which is where the seller hesitation about FHA comes from.

If a home needs real work, the FHA 203(k) program lets you finance the purchase and the renovation in one loan. It is slower and more paperwork, but it is how some of my buyers have gotten into Millcreek and Holladay neighborhoods they could not otherwise afford.

VA loans in Utah

The Department of Veterans Affairs guarantees a portion of the loan, which lets lenders offer terms no other product matches.

Who qualifies

Generally, 90 days of active service during wartime, 181 days during peacetime, six years in the Guard or Reserves, or 90 days of active-duty Guard or Reserve service, plus certain surviving spouses. Your lender requests your Certificate of Eligibility directly from the VA; it usually comes back in minutes.

Requirements and costs

Item	VA guideline
Down payment	None required with full entitlement
Monthly mortgage insurance	None
Minimum credit score	No VA minimum; most lenders require 580 – 620
Loan limit	None with full entitlement; county limits apply with partial entitlement
Funding fee, 0% down	2.15% first use, 3.3% subsequent use
Funding fee, 5% down	1.5%
Funding fee, 10% down	1.25%
Funding fee exemption	Veterans receiving disability compensation, active-duty Purple Heart recipients, eligible surviving spouses
Seller concessions	Up to 4% of the purchase price, plus the seller can pay all standard closing costs
Occupancy	Primary residence

No down payment and no monthly mortgage insurance is a combination nothing else offers. On a $550,000 home, a VA buyer with full entitlement can close with only closing costs, and often with those covered by a seller credit. Compared to FHA at 3.5% down with MIP, that is roughly $19,000 less cash at closing and $250 less per month.

The funding fee is the trade-off, and it can be rolled into the loan. If you have a VA disability rating with compensation, make sure your lender knows. Buyers exempt from the fee sometimes pay it by mistake, and it is refundable if that happens.

VA appraisals

VA appraisers apply minimum property requirements similar to FHA's: safe, sound, and sanitary. Utah is not one of the states where the VA requires a termite inspection, so that step is usually skipped here. The VA also allows a Tidewater process when the appraiser expects to come in below the contract price, giving your agent a chance to submit comparable sales before the value is finalized. I have used it successfully more than once in fast-moving markets.

Reusing your VA benefit

VA entitlement is restored when you sell and pay off the loan, and you can hold more than one VA loan at a time if you have enough remaining entitlement. Service members who bought near Hill Air Force Base and are transferring to a new post regularly keep the first home as a rental and buy the next with VA as well.

Writing a competitive FHA or VA offer

Listing agents remember the one FHA deal that fell apart over a $400 repair. Your job is to make the loan a non-issue.

Get a full underwritten pre-approval, not a pre-qualification. A lender who has already reviewed your documents and run automated underwriting can give the listing agent real confidence. Local lenders with a strong FHA and VA track record help; I can introduce you to several.
Ask the lender to call the listing agent. A two-minute call explaining that the file is already through underwriting goes a long way.
Keep the inspection period tight and do not nickel-and-dime. Reserve repair requests for safety and structure.
Offer to cover minor appraisal-required repairs yourself. FHA and VA allow the buyer to pay for some repairs. Saying so up front removes the seller's biggest fear.
Do not waive the appraisal contingency on a VA loan, but you can offer an appraisal gap of a few thousand dollars from your own funds if you have them.
Target the right homes. Newer construction, well-maintained resale, and homes that have sat more than two weeks are where FHA and VA offers do best. My competitive offers post covers the rest of the playbook.

Stacking with Utah Housing assistance

Utah Housing Corporation's FirstHome, HomeAgain, and Score loans all work with FHA and VA first mortgages. UHC provides a second mortgage covering the down payment and closing costs, which is how many Utah buyers close with nearly nothing out of pocket. The first-time home buyer programs guide goes through each program, the income limits, and the trade-offs.

If you are a veteran, a service member at Hill or Camp Williams, or a buyer whose credit is still recovering, reach out. I will connect you with a lender who does this every week and we will build a plan that gets you into the right house, not just a house.