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FHA Loans in Utah

Whether you're interested in the state’s diverse geography, its rich history, or just searching for the right place to raise a family, buying a house in Utah is a great choice.

Purchasing a home is an exciting time, however, assessing your financing options usually isn’t. This is where Utah FHA loans can help. FHA loans are great for first-time buyers and take the stress out of mustering up a large down payment. Continue reading to see why so many residents in Utah are looking to FHA loans.

FHA Loan Volume in Utah

The median home cost in Utah is close to $341,000, which is about $121,000 more than the national average, making Utah a great candidate for FHA loans due to its lower down payment options. This is seen in the total value of FHA loans in Utah being over $203 million as of April 2019!

Benefits of FHA Loans in UT

  • FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
  • FHA mortgage rates are typically lower than conventional mortgage rates.
  • FHA down payment and credit score requirements are typically lower than conventional loans
  • Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
  • FHA loans are assumable

FHA Loan Limits in Utah

In most of Utah, the baseline limit of $498,257 applies, but in a place like the Ogden-Clearfield area, the limit is $744,050 and the limit in the Provo-Orem area is $601,450 due to the relatively high cost of real estate in these areas. Check the link below for the full list of Utah FHA loan limits.

Are You Eligible for an FHA Loan in UT?

You may be eligible for an FHA loan, if you:

  • Have 2 years of steady employment, preferably with the same employer.
  • Have had steady income (or increasing income) in the past two years.
  • Have had less than two 30 day periods of late payments on your credit report.
  • Have declared bankruptcy no less than two years ago and have maintained good credit since.
  • Have not been a party in a foreclosure for at least three years and have maintained good credit since.
  • Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

What Do You Need to Apply for an FHA Loan in UT?

Buyers must be able to provide the following information and documents as requested by lenders:

  • The addresses of all your residences over the past two years.
  • The names of your employers over the past two years.
  • W2's for the past two years and current paycheck stubs.
  • Your current gross monthly salary.
  • Your Social Security Number.
  • Names, addresses, and account numbers with balances on all checking and savings accounts.
  • Addresses and loan information of any other real estate you owned.
  • Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
  • Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.