Many Utah homebuyers assume they need 20% down to purchase a home.
That is not always true.
Depending on your income, credit, loan type, and the property you are buying, you may have several down payment options in Utah.
At Houzd Mortgage, we have access to a wide range of loan programs. That allows us to compare different options and help you find one that fits your goals, budget, and available savings.
Buying a Home With 1% Down
For qualified buyers, a 1% down program can significantly reduce the amount of money needed upfront.
With certain programs, the buyer contributes 1% of the purchase price, while additional funds may be provided as a gift or assistance.
This can be helpful for buyers who have strong income and can afford the monthly payment but do not want to spend years saving a large down payment.
Program guidelines apply, and not every buyer or property will qualify.
Buying a Home With 3% Down
Some conventional loan programs allow qualified buyers to purchase a primary residence with as little as 3% down.
This option may work well for first-time buyers and certain repeat buyers who want to keep more money available for closing costs, moving expenses, repairs, or emergency savings.
Conventional financing may also provide a path to remove private mortgage insurance later after enough equity has been built.
Buying a Home With 5% Down
A 5% down payment is another common option for conventional financing.
Putting 5% down may provide more flexibility than some lower-down-payment programs. It may also reduce the loan amount and monthly mortgage insurance compared with putting less money down.
For many buyers, 5% down offers a comfortable middle ground between preserving cash and lowering the monthly payment.
Buying a Home With 10% Down
Putting 10% down can help reduce the mortgage balance, monthly payment, and mortgage insurance cost.
It may also make your offer more attractive in certain situations. However, putting more money down is not always automatically the best decision.
You should also consider your emergency savings, future repairs, moving costs, and other financial goals before putting all your available cash into the home.
Do You Need 20% Down?
You usually do not need 20% down to buy a home.
Putting 20% down on a conventional loan can help you avoid private mortgage insurance, but it may not make sense to delay buying for several years just to reach that number.
The right down payment depends on your full financial picture.
Sometimes putting less down and keeping money in savings is the better option. In other situations, a larger down payment may create meaningful monthly savings.
That is why it is important to compare the numbers instead of relying on a general rule.
Houzd Mortgage Has More Options
As an independent mortgage broker, Houzd Mortgage works with multiple lenders and loan programs.
Our access to down payment options is difficult to match. Instead of trying to fit every buyer into one standard program, we can compare options based on:
- Your income and credit
- Your available savings
- Your preferred monthly payment
- The type of home you are buying
- Your short-term and long-term goals
You may qualify for a low-down-payment conventional loan, FHA financing, down payment assistance, a gift program, or another option you did not know was available.
Let’s Run the Numbers
The best down payment is not always the smallest or the largest.
It is the amount that helps you purchase the right home while keeping your monthly payment and savings at a comfortable level.
If you are considering buying a home in Utah, Houzd Mortgage can compare your down payment options and show you what each one would look like.
Contact Houzd Mortgage at 801-206-4343 to start the conversation.
For qualified buyers. Program guidelines apply. Loan options, down payment requirements, mortgage insurance, rates, and qualification standards vary by borrower and property. This is not a commitment to lend. Equal Housing Opportunity. Company NMLS 888979.