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.

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They have good income, can afford the monthly mortgage payment and they feel ready to buy a home.

But there is one problem.

They do not have a large down payment saved.

If that sounds familiar, you are not alone. Saving for a down payment can feel like trying to fill a bathtub with a teaspoon, especially with rent, groceries, gas, kids, emergencies, and life doing its usual little tap dance on your budget.

The good news is that the 1% down program may help qualified buyers get into a home with less upfront cash.

What Is the 1% Down Program?

The 1% down program helps qualified buyers purchase a home while bringing less money out of pocket for the down payment.

Instead of needing a full 3% or 3.5% down payment, eligible buyers may only need to contribute 1% of the purchase price.

This can make homeownership feel much more realistic for buyers who have strong income but limited savings.

Good Income Does Not Always Mean Big Savings

There is a common myth that if someone earns good money, they should automatically have a large amount saved for a down payment.

That sounds nice in theory.

In real life, it does not always work that way.

Many buyers have stable jobs and strong monthly income, but they are also paying rent, car payments, student loans, childcare, insurance, and everyday expenses.

They may be able to comfortably afford a mortgage payment, but saving tens of thousands of dollars can still take a long time.

That does not mean they are irresponsible. It may simply mean the upfront cash requirement is the biggest thing holding them back.

When the Monthly Payment Works, but the Down Payment Does Not

This is where the 1% down program can be a helpful option.

Some buyers do not need a lower monthly payment as much as they need a lower amount due at closing.

They may already know they can handle the monthly mortgage payment and may even be paying close to that amount in rent.

The challenge is getting through the front door.

A lower down payment option can help qualified buyers move forward without waiting years to save a full down payment.

Keep More Cash Available After Closing

Buying a home does not stop at the down payment.

There are moving costs, furniture, small repairs, utility deposits, yard tools, paint, and all the random things you suddenly need once you own a home.

The 1% down program may help buyers keep more cash available for those next steps.

That can make the transition into homeownership feel less stressful and more manageable.

Who May Be a Good Fit?

The 1% down program may be a good fit for buyers who have:

• Stable income
• Good employment history
• Manageable monthly debts
• Enough income to afford the payment
• Limited cash saved for a down payment

Every buyer still needs to qualify. Our team at Houzd can review your credit, income, debts, employment, and potential loan type.

For the right buyer, this program can open a door that may have felt closed.

Why It Is Worth Checking

Many buyers assume they need a large down payment before they can even start the conversation.

That assumption can delay homeownership longer than necessary.

The better first step is to review the numbers.

You may find out that you need more time to prepare. Or, you may find out that you are closer than you thought.

Either way, having a clear plan is better than guessing.

The Bottom Line

If you have good income and can afford the monthly payment, but the down payment is holding you back, the 1% down program may be worth exploring.

Let’s run the numbers, review your options, and see if this program could help you buy sooner.

Written by Anthony VanDyke, Utah Mortgage Broker — NMLS #247102 — President at Houzd Mortgage in Draper, Utah.

A mortgage broker since 2006, Anthony has helped thousands of Utah families build a stronger financial future, one home at a time. He believes a mortgage isn’t just a loan — it’s a long-term financial strategy that can shape a family’s wealth and peace of mind.

See what you qualify for with Anthony’s Purchase Qualifier Tool.

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