Short answer: less than most people think. The real minimum is 3% down on a conventional loan, 3.5% on FHA, or $0 down on VA and USDA if you qualify. Utah buyers who actually put money down average a lot more than that, 10% for first-time buyers and 23% for repeat buyers nationally in 2025, per the National Association of Realtors. Utah's own down payment assistance programs can knock a big chunk of that out too. Here's the real math, loan type by loan type, before you assume you need 20%.
Down payment data: National Association of Realtors, 2025 Profile of Home Buyers and Sellers (released November 2025). Home price data: Redfin Utah housing market data, June 2026. Loan minimums: FHA, VA, and USDA program guidelines, 2026. Down payment assistance: Utah Housing Corporation programs, via The Mortgage Reports, 2026. Page last updated August 16, 2026.
More than the minimum, but a lot less than 20%. Nationally, the median down payment in 2025 was 19% across all buyers, 10% for first-time buyers and 23% for repeat buyers using their last sale's equity, according to NAR's 2025 Profile of Home Buyers and Sellers. That's the highest first-time-buyer down payment NAR has recorded since 1989. Most buyers are stretching to put more down because it lowers the monthly payment in a market with higher rates, not because a lender is requiring it. The requirement itself is much lower, and that gap is the whole point of this page.
It depends which loan you use, not on some universal 20% rule.
The 20% figure people quote isn't a minimum. It's the amount that lets you skip private mortgage insurance on a conventional loan. That's a real cost worth understanding, covered next, but it isn't a requirement to buy a home.
On a conventional loan, putting down less than 20% means paying private mortgage insurance, PMI, until you build enough equity to drop it. PMI typically runs 0.46% to 1.5% of your loan amount per year, split into your monthly payment, according to Experian. On a $400,000 loan, that's roughly $1,840 to $6,000 a year, or about $153 to $500 a month, and it shrinks every year as your balance drops. FHA loans charge a similar mortgage insurance premium that, in most cases, sticks around for the life of the loan rather than dropping off automatically. VA and USDA loans skip monthly mortgage insurance entirely, though VA charges a one-time funding fee at closing instead. None of this is a reason to avoid a low down payment. It's just the real tradeoff, in dollars, so you can weigh it against tying up cash you might need.
Utah Housing Corporation runs the two main ones, and both work as a second loan stacked on top of your first mortgage rather than free money.
There's also a separate state program, S.B. 240, a zero-interest second mortgage up to $20,000 for first-time buyers on new construction under a price cap. I've written about how that one works in detail, including the builder-lender traps to watch for, in a separate post on using the $20k grant in Eagle Mountain. All of these programs still require you to qualify for the first mortgage on your own. They lower the cash you need at closing. They don't replace the underwriting.
Take Utah's statewide median home price, $534,273 in June 2026, per Redfin's Utah housing market data. Here's what each down payment tier actually costs in cash at closing.
No, and I'll tell you the honest version instead of the sales version. A bigger down payment lowers your monthly payment and can get you out of mortgage insurance sooner. But it also ties up cash you might need for moving costs, repairs, or an emergency fund, and once that money's in the house, it's not liquid anymore. If a down payment assistance program or a lower minimum gets you into a home years sooner while you keep a real cash cushion, that can be the smarter move, not the weaker one. If you have the cash and the goal is the lowest possible monthly payment, put more down. There's no single right answer here. It depends on what you're actually optimizing for.
| Loan type | Minimum down | On a $534,273 home | Mortgage insurance | Who qualifies |
|---|---|---|---|---|
| Conventional | 3% | $16,028 | PMI until 20% equity | Most borrowers meeting credit/income guidelines |
| FHA | 3.5% | $18,700 | MIP, usually life of loan | Credit score 580+ (500-579 needs 10% down) |
| VA | $0 | $0 | None (one-time funding fee) | Eligible veterans, active duty, some surviving spouses |
| USDA | $0 | $0 | Annual guarantee fee | Eligible rural/suburban areas, income limits |
| Conventional + UHC FirstHome | as low as 0% | up to $32,056 covered | PMI until 20% equity | First-time buyer, 660+ credit score |
Sources: down payment minimums, FHA/VA/USDA program guidelines, 2026. Home price, Redfin Utah housing market data, June 2026. Assistance program terms, Utah Housing Corporation via The Mortgage Reports, 2026. Figures are estimates. Confirm your exact number with a licensed lender before you budget around it.
Takeaway: the gap between the minimum down payment and the median down payment Utah buyers actually put down is thousands of dollars, and a state assistance program can close most or all of that gap for a qualifying first-time buyer.
Talk to a licensed lender before you talk to me about homes. A lender will run your actual credit, income, and debt, and tell you which loan types you qualify for and what your real down payment and monthly payment look like. That number is specific to you. Nothing on this page is a substitute for it. Once you have that number, I can help you find homes that actually fit it, instead of guessing at a budget from a percentage you saw online.
Don't rule yourself out of buying because you assumed you needed 20% down. Start with a lender conversation to find your real minimum, ask specifically about Utah Housing Corporation's FirstHome and Score programs if you're a first-time buyer, and decide how much of your own cash you actually want to put in versus keep in reserve. Then we can talk about what that budget actually buys on the Wasatch Front right now.
I'll tell you the number you need to hear, not the one you want to hear. If a bigger down payment doesn't make sense for your situation, I'll say so.
Talk with Cory Salisbury, Realtor with KW Westfield, helping Utah families since 2012.
General market education, not mortgage, financial, tax, or legal advice. Cory Salisbury is not a mortgage broker or lender. Down payment amounts, mortgage insurance costs, and program terms are estimates based on 2026 program guidelines and change; confirm current figures and your personal eligibility with a licensed lender. Home price is a dated snapshot from a third-party market report and isn't a guarantee or prediction of future value. Cory Salisbury, Realtor, KW Westfield. Equal Housing Opportunity.
$0 down if you qualify for a VA or USDA loan. If not, 3% down on a conventional loan or 3.5% down on FHA are the standard minimums, and Utah Housing Corporation's FirstHome or Score programs can cover most or all of that as a second loan for a qualifying first-time buyer.
No. 20% down is not a requirement, it's the amount that lets you skip private mortgage insurance on a conventional loan. Most Utah first-time buyers put down far less, a median of 10% nationally in 2025 per NAR, and still buy successfully with PMI factored into the monthly payment.
PMI typically runs 0.46% to 1.5% of your loan amount per year, paid monthly, and it drops off once you reach 20% equity on a conventional loan. On a $400,000 loan that's roughly $153 to $500 a month, shrinking every year as your balance goes down.
Utah Housing Corporation's FirstHome Loan offers up to 6% of your loan amount and its Score Loan offers up to 4%, both as a second loan toward down payment and closing costs, requiring a 660 minimum credit score. A separate program, S.B. 240, offers up to $20,000 for first-time buyers on qualifying new construction.
Not always. A bigger down payment lowers your monthly payment and can remove PMI sooner, but it also ties up cash you might need for repairs, moving costs, or an emergency fund. Whether it's the right move depends on what you're optimizing for, not a fixed rule.
General market education, not mortgage, financial, tax, or legal advice. Cory Salisbury is not a mortgage broker or lender. Down payment amounts, mortgage insurance costs, and program terms are estimates based on 2026 program guidelines and change; confirm current figures and your personal eligibility with a licensed lender. Home price is a dated snapshot from a third-party market report and isn't a guarantee or prediction of future value. Cory Salisbury, Realtor, KW Westfield. Equal Housing Opportunity.
