How Much Down Payment Do You Need to Buy a Home in Utah?

• Conventional — some programs allow 3% down for qualified borrowers. Requirements, mortgage insurance, income limits, and occupancy rules vary.
• FHA — HUD states that eligible borrowers may make a down payment as low as 3.5% on qualifying one- to four-unit properties.
• VA — qualified veterans, service members, and eligible surviving spouses may obtain financing with no down payment, subject to program and lender requirements.
• USDA — eligible rural properties and qualified borrowers may have zero-down financing, subject to income and geographic requirements.

A 20% conventional down payment may avoid private mortgage insurance, reduce the loan balance, improve monthly cash flow, and strengthen an offer. But waiting years to reach 20% can expose the buyer to changing prices and rates, and using all savings may create financial fragility.

Cash to close can include the down payment, lender and settlement charges, prepaid taxes and insurance, initial escrow funding, discount points, appraisal, inspections, and adjustments. Earnest money and credits affect the final figure but do not eliminate the need to understand each component.

Loan programs may permit gifts, grants, or approved secondary financing. Documentation and source rules apply. Utah Housing Corporation and some local governments offer assistance programs with income, property, price, residency, education, or repayment requirements.

Compare at least three down-payment levels. For each, calculate cash to close, monthly payment, mortgage insurance, interest cost, reserves remaining, and the effect on offer strength. A 5% down purchase with six months of reserves may be safer than 15% down with no liquidity.

The minimum down payment is a loan-program question. The right down payment is a household strategy question. Preserve enough cash to close, move, repair, and withstand surprises.

Next step: compare multiple down-payment scenarios before deciding how much cash to commit.