🏡 First-Time Homebuyer’s Guide to Financing a New Home in Utah
Buying Your First Home in Utah? Start Here.
If you’re a first-time homebuyer in Utah, financing your new home might feel like the most intimidating part of the process. But it doesn’t have to be. With the right info, tools, and support, getting a mortgage in Utah can be more straightforward than you’d expect — even with rising rates and shifting market conditions.
Here’s what you need to know.
1. Get Your Finances in Order
Before applying for a mortgage, take stock of where you stand financially.
- Credit Score: Aim for at least 620. Better scores = better interest rates.
- Down Payment: You don’t need 20%. Some Utah buyers qualify with as little as 3–5%.
- Debt-to-Income Ratio (DTI): Most lenders prefer under 43%. Lower is better.
Pro Tip: Pull your credit report early, fix any errors, and start paying down debt where possible.
2. Understand Your Loan Options
In Utah, most first-time buyers choose one of these:
- Conventional Loans: Good for buyers with stronger credit. May require 3–5% down.
- FHA Loans: More flexible on credit scores; down payment as low as 3.5%.
- VA Loans: For qualified veterans and active military — no down payment required.
- USDA Loans: Zero-down option for eligible rural areas.
Each has pros and cons — the key is matching the right loan to your financial picture.
3. Use Utah-Based Buyer Assistance Programs
Utah has some excellent programs designed to help new buyers get started:
🏠 Utah Housing Corporation Loans
These provide 30-year fixed-rate mortgages and down payment assistance for qualifying buyers.
More info: utahhousingcorp.org
🧾 First-Time Homebuyer Assistance Program
Offers up to $20,000 toward down payment and closing costs on new construction homes under $450,000.
💰 American Dream Grants (Salt Lake Board of Realtors)
$7,500 grants for first-time buyers in Salt Lake County. Check availability — grants are limited and first-come, first-served.
More info: slrealtors.com
4. Watch Utah Mortgage Rates
Rates change daily — and they matter. As of early April 2025, Utah buyers are seeing:
- 30-Year Fixed: ~6.63%
- 15-Year Fixed: ~6.38%
(Source: Bankrate)
Locking in a good rate at the right time can save you thousands over the life of your loan.
5. Plan for More Than Just Your Mortgage
Remember to budget for:
- Closing Costs (2–5% of purchase price)
- Homeowners Insurance & Property Taxes
- HOA Fees (if applicable)
- Utilities, maintenance, and repairs
A good rule of thumb: Be ready for a few “surprise” expenses in your first year.
6. Choose the Right Local Team
Work with a local real estate agent and mortgage professional who understand Utah’s market, lending programs, and home values. They can guide you toward programs you might not know exist — and help you avoid costly mistakes.
7. Ready to Buy a New Home in Utah?
If you’re thinking about new construction or move-in ready homes, working with a builder like Patterson Homes can streamline the process. Our team helps you stay informed, prepared, and connected to Utah resources that make financing easier.
📩 Contact us today to learn more or schedule a consultation.
