Question 1

How much down payment do I need to buy a house?

Accepted Answer

It depends on the loan type. Conventional loans require as little as 3% down for qualified buyers. FHA loans require 3.5% with a 580+ credit score. VA loans and USDA loans require 0% down for eligible borrowers. Putting 20% down eliminates the need for PMI on conventional loans.

Question 2

What is PMI and can I avoid it?

Accepted Answer

PMI (private mortgage insurance) is required on conventional loans when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount annually. You can avoid it by putting 20% down, choosing a VA loan (if eligible), or using a piggyback loan structure. PMI automatically cancels once you reach 20% equity.

Question 3

Are there down payment assistance programs in Utah?

Accepted Answer

Yes. Utah Housing Corporation offers several programs for first-time buyers including down payment assistance loans and grants. There are also federal programs and lender-specific programs. Contact one of our loan officers to find out which programs you qualify for.

Question 4

Can I use gift money for a down payment?

Accepted Answer

Yes, most loan programs allow gift funds from family members. FHA loans allow 100% of the down payment to be gifted. Conventional loans allow gifts as long as the gift giver provides a signed letter stating the funds are a gift and not a loan.

Question 5

Is a larger down payment always better?

Accepted Answer

Not necessarily. A larger down payment reduces your loan amount and monthly payment, and eliminates PMI, but it also ties up cash that could be used elsewhere. If down payment assistance or low-down programs are available, it may make more sense to keep cash liquid and invest the difference.

Down Payment Calculator

Down Payment Calculator

Conventional — 3–20%

FHA — 3.5%

VA & USDA — 0%

Frequently Asked Questions