FHA loans are the most popular first-time homebuyer option in Utah for a reason: they're designed for people who don't have perfect credit or a massive down payment saved up. But the requirements are specific, and a lot of bad information floats around online. Here's the real picture for 2026.
The FHA sets a floor of 580 for the 3.5% down program. However, individual lenders (including us) sometimes overlay their own requirements — many require 620 or higher. The good news: as a broker with 100+ lenders, we can match you to the lender with the most favorable credit requirements for your specific score.
If your score is between 500–579, you can still qualify with 10% down. If it's below 500, FHA isn't available — but we have other options worth discussing.
Pro tip: If your score is 575 and you need 580, don't despair. A credit rapid rescore can often bump your score 10–20 points in 3–5 business days by correcting errors or paying down specific accounts. Ask us about this before you give up on FHA.
FHA requires 3.5% down for borrowers with 580+ scores. On a $350,000 Utah home, that's $12,250. On a $450,000 home, $15,750.
The down payment can come from:
Utah Housing Corporation (UHC) offers several programs that can cover your FHA down payment entirely. These are real programs — not teaser rates. The FirstHome and HomeAgain programs are the most popular for first-time buyers.
The catch: income and purchase price limits apply, and these programs layer on top of your FHA loan, so qualification has more moving parts. We handle this routinely — it's not complicated when you have the right guide.
FHA is more flexible on DTI than conventional loans. Generally:
Compensating factors that allow higher DTI: significant cash reserves, excellent credit history, minimal payment shock, or residual income (especially for VA loans).
Here's the part most people don't love about FHA: you pay mortgage insurance premium (MIP) for the life of the loan if you put less than 10% down. That's currently 0.55%/year on your loan balance — about $160/month on a $350K loan.
This is the main reason we run both FHA and conventional comparisons for every buyer. If your credit is strong enough, conventional with 3% or 5% down can actually be cheaper long-term because conventional PMI can be removed once you hit 20% equity.
We'll run FHA, conventional, and USDA side-by-side for your specific situation. Takes 2 minutes.
See What You Qualify For →FHA is the right choice when your credit is in the 580–640 range, you don't have 20% down, or you need gift fund flexibility. It's not always the cheapest option long-term — but it's often the path to homeownership when conventional isn't accessible yet.
Start your pre-qual and I'll show you exactly where you stand — FHA, conventional, or something else entirely.