Loan Options
You may not need a big down payment to buy a home.
Many buyers assume they need a large down payment to purchase a home. In reality, several loan programs allow qualified buyers to buy with much less money upfront. The right option depends on your credit profile, your income, your location, and your long term financial goals.
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The low down payment programs.
Five paths worth knowing about. One of them may fit your situation well.
FHA Loans
As little as 3.5% down. Because the down payment is smaller, FHA loans include mortgage insurance to protect the lender. A strong option for buyers who need flexible qualification guidelines. More on FHA loans.
USDA Loans
No down payment in eligible areas. Buyers in eligible suburban and rural areas may qualify with nothing down. Income limits apply, and the property must sit in an approved USDA area. More on USDA loans.
VA Loans
No down payment. No monthly mortgage insurance. Eligible service members and veterans can finance 100% of the purchase through the benefit they earned in service. More on VA loans.
Conventional Loans
As low as 3% down for first time buyers. Repeat buyers can often buy with 5% down. Mortgage insurance may apply below 20% down, and it can typically be removed once enough equity is built. More on conventional loans.
Utah Housing Programs
Help with the down payment itself. Utah Housing offers programs that help cover down payments and closing costs. Combined with another loan program, eligible buyers can sometimes purchase with little or no money down.
What to expect with a lower down payment.
Low down payment programs make homeownership more accessible. They can also add costs that affect the monthly payment.
Mortgage insurance premiums. Most programs below 20% down include mortgage insurance in some form. On many loans it can be removed later, once enough equity is built through payments, appreciation, or a refinance.
Rates can run slightly higher. A smaller down payment can price a little higher than a large one. The difference is often smaller than buyers expect, and buying sooner can be worth more than waiting years to save.
The benefits are real. Less money required upfront at closing. The ability to purchase sooner. Savings kept available for emergencies or other investments. And property appreciation works the same regardless of the down payment size.
Choose the payment, not just the program. A lender may qualify you for a certain loan amount. The most important factor is a monthly payment that fits comfortably within your budget. Understanding your options early helps you decide with confidence.
See what a small down payment does to your equity.
The loan to value calculator shows your loan amount, your equity, and your loan to value percentage for any price and down payment you enter.
Run the Loan to Value CalculatorStart by seeing what you may qualify for.
Run a quick scenario and see which loan programs may fit your situation. Explore your options and estimate payments in just a few minutes.
Check If You QualifyPrefer to talk? Call Austin at (208) 821-0687.