Low down payment
Eligible borrowers may purchase with 3.5% down, subject to credit and underwriting requirements.
Buying your first home or your next home? Explore FHA financing with a low down payment, flexible credit guidelines, and guidance from our Houzd Mortgage team.
An FHA loan is a mortgage made by a private lender and insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. Qualified Utah buyers may use it to purchase a primary residence.
FHA financing offers a down payment as low as 3.5% for eligible borrowers. Approval also depends on income, debts, credit history, available funds, and the property.
Explore the features alongside the costs and eligibility requirements.
Eligible borrowers may purchase with 3.5% down, subject to credit and underwriting requirements.
FHA may be worth exploring when your credit history makes other financing more difficult.
Properly documented gifts from permitted sources may help with your required funds.
Negotiated seller contributions may cover eligible closing costs within FHA guidelines.
FHA is an option for qualified buyers at different stages of homeownership.
Compare FHA with conventional financing, including insurance and total payment.
FHA generally permits 3.5% down with a qualifying decision credit score of 580 or higher. Scores from 500–579 require at least 10% down under FHA guidelines.
Lenders may have stricter requirements. Meeting a minimum score does not guarantee approval, and closing costs are separate from the down payment.
Most FHA purchase loans include an upfront mortgage insurance premium, which can generally be financed, and an annual premium collected through monthly payments.
Ask for an estimate showing principal, interest, mortgage insurance, property taxes, homeowners insurance, and any applicable HOA dues.
For most new FHA purchase loans, annual mortgage insurance lasts for the loan term when the original loan-to-value ratio exceeds 90%, or 11 years when it is 90% or less, unless paid off sooner.
Building equity alone does not automatically cancel it. Compare this cost with your other financing options.
FHA loan limits vary by county, property unit count, and year. Check the county where the home is located rather than assuming one limit applies throughout Utah.
Based in Draper, our Houzd Mortgage team helps buyers in Salt Lake, Utah, Davis, and Weber counties evaluate their financing. Your plan should account for the county loan limit, property eligibility, total payment, and funds needed to close.
Use HUD's FHA mortgage limit lookup to check current limits, or connect with a Houzd loan officer to review your purchase.
Your application involves more than a credit score. Expect a review of:
Your loan officer will explain the documents and conditions that apply to your situation.
Build a financing plan before you commit to a home.
Share your finances and homebuying goals.
Review payments, insurance, closing costs, and available financing.
Understand your budget and remaining approval conditions before shopping.
Work through appraisal, underwriting, final approval, and closing.
No. Qualified first-time and repeat buyers can use FHA financing for a primary residence.
Limits depend on the property's county, number of units, and year. Check HUD's current county limits before setting your financing plan.
No. Credit score is one factor. Lenders also review income, debts, credit history, funds, and the property, and may set stricter standards than FHA's minimum guidelines.
Yes. Eligible gifts may help cover required funds when the donor, source, and transfer meet FHA documentation rules. A gift cannot have a repayment obligation.
Seller contributions toward eligible costs are permitted within FHA limits. They cannot replace your required down payment or exceed actual allowable costs.
Eligible assistance may be compatible with FHA financing. Availability, income limits, credit standards, education requirements, and repayment terms depend on the assistance program. Ask your loan officer to review current options.
FHA purchase financing generally requires owner occupancy. An eligible two- to four-unit property may qualify when you occupy one unit and meet additional requirements.
No. An FHA appraisal addresses value and minimum property requirements. A separate home inspection provides a more detailed assessment of the home's condition.
Generally, no for new FHA loans. Annual mortgage insurance duration is based on the original loan terms and loan-to-value ratio, rather than later appreciation alone.
It depends on your qualifications and goals. Compare the interest rate, APR, insurance, closing costs, monthly payment, and expected borrowing period for both.
Start your application online or talk with a Houzd loan officer about your budget, timeline, and Utah homebuying plans.
Let's compare FHA financing with your other options and build a homebuying plan around your budget.
Have questions first? Connect with a Houzd loan officer.
Houzd Mortgage | NMLS #888979 | Equal Housing Opportunity.
All loans are subject to credit, underwriting, and property approval. Down payment and credit requirements depend on borrower qualifications, property, program, and lender guidelines. FHA mortgage insurance and applicable county loan limits apply. Rates, terms, and program availability may change. This information is not a commitment to lend.
Houzd Mortgage is not affiliated with or endorsed by the Federal Housing Administration, HUD, or any government agency.