How Much Down Payment Do You Really Need to Buy in Salt Lake County?

The minimum down payment to buy a home in Salt Lake County is 0% for VA and USDA loans, 3% for conventional loans, and 3.5% for FHA loans. With a county median sale price of $550,000, that translates to between $0 and $19,250 — far less than the outdated 20% rule most first-time buyers still believe.

How down payment minimums work in Utah

Loan programs set the minimum, not the lender. Once you pick your loan type, the floor is fixed:

• VA loan — 0% down, for veterans, active service, and some surviving spouses
• USDA loan — 0% down, for qualifying rural areas (parts of southwest Salt Lake County qualify)
• Conventional 97 — 3% down, the most common path for first-time buyers
• FHA — 3.5% down, more flexible credit minimums (580+)
• Conventional 5%+ — avoids the highest PMI tier
• Conventional 20% — no PMI at all

Below 20%, you pay private mortgage insurance, which adds $100-$300/month depending on loan size and credit score. PMI drops off automatically when you hit 22% equity.

The numbers for a typical Salt Lake County home

At the 2026 median of $550,000:

Down %	Down payment	Estimated monthly P&I (6.5% rate, 30yr)
3%	$16,500	$3,371
3.5%	$19,250	$3,353
5%	$27,500	$3,303
10%	$55,000	$3,128
20%	$110,000	$2,781

Add property tax ($200/month in Salt Lake County) and homeowner’s insurance ($110/month) to get the true PITI payment.

Don’t forget closing costs

Closing costs run 2-5% of the loan amount on top of your down payment. For a $550,000 home, that’s $11,000-$27,500 in additional cash needed at signing. Many buyers negotiate seller-paid closing costs as part of the offer — a common move in our current market with days on market sitting around 36.

Down payment assistance you can actually use

Two programs cover the most buyers in Salt Lake County:

• Utah Housing Corporation (UHC) — up to $15,000 toward down payment and closing costs, paired with a UHC first mortgage. First-time buyer status not required for all programs.
• Salt Lake County Homebuyer Program — county-administered assistance for buyers under 80% AMI in specific zip codes.

See our complete first-time homebuyer guide for Utah for how these stack with FHA and conventional loans.

When low down payment makes sense — and when it doesn’t

Going low isn’t always cheaper. Compare your numbers:

• Low down (3-5%) wins if you’d rather keep cash for repairs, furniture, or a reserve fund — and you’re confident in your income.
• Higher down (10-20%) wins if your monthly payment matters more than your liquidity, or if you’re buying in a competitive Sandy or Holladay neighborhood where stronger financing helps your offer.

Loan programs vary widely in their down-payment minimums — from 0% on some government-backed options to 3–20% for conventional. A licensed lender can tell you which programs you qualify for.

What to do next

The fastest way to know what you actually qualify for is to get pre-approved with two lenders and compare offers. Reach out to Andrew for our short list of local lenders who close on time and don’t surprise you at the closing table.

Your down payment isn’t the whole picture — your full monthly payment, closing costs, and reserves are. Get them all in one conversation before you start touring homes.