Short answer: the price of the house isn't the only number that decides what you can afford. The loan program does too. Six real programs change your down payment, your monthly insurance cost, or both: conventional with 20% down, conventional with 3-5% down, FHA at 3.5% down, VA at 0% down for eligible veterans, USDA at 0% down in eligible rural areas, and Utah Housing's down payment assistance stacked on top of any of them. Here's what each one actually costs, side by side, using the same illustrative home price so you can compare them fairly.
Sources: FHA figures via Amerisave, 2026. VA funding fee via VA.gov. USDA figures via The Mortgage Reports, 2026. Utah Housing FirstHome and Score figures via The Mortgage Reports, 2026. PMI range via Experian, 2026. Page last updated August 25, 2026.
I'm not a mortgage broker or a lender, and I'm not going to pretend to be one here. What I can do is show you the real math on the programs that exist, so you walk into a lender conversation already knowing the right questions. The numbers below use an illustrative $500,000 home price and an illustrative 6.5% 30-year fixed rate for comparison only. Your real rate depends on your credit, your lender, and the day you lock it. Confirm your actual numbers with a licensed lender before you count on any of this. That's the honest starting point.
Two buyers can look at the exact same $500,000 house and need completely different amounts of cash to get the keys. One puts down $100,000. Another puts down $0. The house doesn't change. The loan program does. It also changes your monthly payment, because most low-down-payment programs add some form of mortgage insurance or a funding fee that a 20%-down buyer never pays. That's real money, and it isn't the house's fault. If you're only comparing home prices, you're missing half the affordability math.
These are the loan programs a Wasatch Front buyer actually runs into: the standard conventional loan, the low-down-payment conventional option, and the three federal 0-to-low-down programs (FHA, VA, USDA), plus Utah's own state down payment assistance, which can stack on top of most of the others. It isn't every mortgage product on the market. It's the six that come up in real conversations with real buyers, compared on the same house so you can actually weigh them against each other.
Down payment: $100,000 on a $500,000 home. Monthly principal and interest at an illustrative 6.5%: about $2,528. No monthly mortgage insurance at all, because 20% down clears the equity threshold lenders use to waive it. It's the most expensive program up front and the cheapest one every month after that. Most buyers don't have $100,000 sitting around, which is exactly why the other five programs exist.
Down payment: as low as $15,000-$25,000 on a $500,000 home, through programs like Fannie Mae HomeReady or Freddie Mac Home Possible. They're both income-limited, generally to buyers earning at or below 80% of the area median income. Monthly principal and interest runs about $2,970-$3,002. Private mortgage insurance (PMI) adds $182-$594 a month, since PMI runs 0.46% to 1.50% of the loan a year depending on credit and down payment, per Experian. The upside over FHA: PMI cancels once you reach 20-22% equity. It doesn't ride along for the life of the loan.
Down payment: $17,500 on a $500,000 home. Monthly principal and interest runs about $3,050. FHA adds an upfront mortgage insurance premium (MIP) of 1.75% of the loan, usually financed into the loan rather than paid in cash, plus an annual MIP of about 0.55% for most 30-year loans at this down payment, roughly $221 a month, per Amerisave. FHA is more forgiving on credit than a conventional loan, and that's the appeal. The tradeoff: on most FHA loans with under 10% down, that MIP sticks around for the life of the loan instead of canceling like PMI does.
Down payment: $0 on a $500,000 home for eligible veterans, active-duty service members, and some surviving spouses. Monthly principal and interest runs about $3,160. There's no monthly mortgage insurance at all, ever, on a VA loan. Instead there's a one-time funding fee: 2.15% of the loan on a first-time VA loan with less than 5% down, or 3.3% on a subsequent VA loan, per VA.gov. Veterans receiving VA disability compensation are exempt from the funding fee entirely. It's usually financed into the loan, not paid in cash at closing.
Down payment: $0, but only in USDA-eligible areas and only for households at or below 115% of the area median income. Several communities on the outer edge of the Wasatch Front qualify; most of the Salt Lake and Utah County urban core doesn't, so you'll want to check the address first. Monthly principal and interest runs about $3,160. USDA adds a 1% upfront guarantee fee, usually financed into the loan, plus a 0.35% annual fee, about $146 a month on this example, per The Mortgage Reports. The real constraint here isn't the payment. It's whether the specific address qualifies.
This one isn't a first mortgage by itself. It's help layered on top of an FHA, VA, or conventional loan through Utah Housing Corporation's FirstHome or Score programs. FirstHome offers up to 6% of your loan amount toward the down payment and closing costs, capped at $27,500, for buyers with a 660+ credit score. Score offers up to 4%, with more flexible credit requirements, per The Mortgage Reports. The assistance isn't free. It becomes its own loan on top of your first mortgage, with its own repayment terms that vary by option. Ask a Utah Housing-approved lender to run the exact structure for your situation before you count on it.
| Program | Down payment on $500K | Est. monthly P&I | Ongoing insurance/fee |
|---|---|---|---|
| Conventional, 20% down | $100,000 | ~$2,528 | None |
| Conventional, 3-5% down | $15,000-$25,000 | ~$2,970-$3,002 | PMI: $182-$594/mo, cancels at 20-22% equity |
| FHA, 3.5% down | $17,500 | ~$3,050 | MIP: ~$221/mo, often life of loan |
| VA, 0% down | $0 | ~$3,160 | One-time funding fee 2.15-3.3%, no monthly cost |
| USDA, 0% down | $0 | ~$3,160 | Annual fee ~$146/mo; rural-eligible areas only |
| Utah Housing DPA (stacked) | Reduced by up to 6% / $27,500 | Varies | Second loan, its own repayment terms |
Illustrative only, using a $500,000 home price and a 6.5% 30-year fixed rate for comparison. Real rates, terms, and eligibility come from a licensed lender. Sources: Amerisave (FHA), VA.gov (VA), The Mortgage Reports (USDA, Utah Housing), Experian (PMI), all 2026.
Takeaway: the 0%-down programs (VA and USDA) carry the lowest cash-to-close and no monthly mortgage insurance, but each has a real eligibility gate: military service for VA, location and income for USDA. FHA and low-down conventional are open to more buyers but cost more every month in insurance. There's no universally "best" program. There's the one that actually fits your situation.
No. A $0-down loan can still mean a higher monthly payment than a loan with money down, once you count the funding fee or the mortgage insurance. What actually changes what you can afford is the combination of your down payment, your monthly insurance or fee cost, and your income and debts together. That's exactly why a pre-approval from a licensed lender beats any of the numbers on this page. A lender runs your real numbers against all six programs and tells you which one actually gets you the most house for the payment you can live with.
Figure out which programs you're even eligible for first. That's five minutes of work, not five hours. Military service unlocks VA. A specific rural address unlocks USDA. Income at or under 80% of area median unlocks the low-down conventional options. Everyone eligible for a first mortgage can look at stacking Utah Housing assistance on top. Then bring that shortlist to a lender and ask them to run real numbers for each one side by side, not just one program in isolation. If you want a couple of Utah lenders I trust to have that conversation with, I'm glad to send you their way.
VA and USDA both allow $0 down for eligible buyers. VA requires military service eligibility; USDA requires the specific address to sit in a USDA-eligible area and the household income to fall at or under 115% of the area median.
Usually not, on an FHA loan with less than 10% down. The annual MIP typically stays for the life of the loan. Conventional PMI, by contrast, cancels once you reach 20-22% equity, which is why some buyers choose a low-down conventional loan over FHA even with a similar down payment.
Yes. Utah Housing's FirstHome and Score down payment assistance can stack on top of an FHA, VA, or conventional first mortgage. It becomes its own second loan with its own repayment terms, so ask a Utah Housing-approved lender to walk you through the exact structure before you count on it.
No. Those numbers are illustrative, used only so the six programs can be compared on the same house. Your real rate depends on your credit, your lender, and market conditions the day you lock it. Get a real quote from a licensed lender.
Start with eligibility: military service, a rural address, or income at or under 80-115% of the area median narrows the list fast. Then bring whatever you qualify for to a licensed lender and ask for real numbers on each option, side by side, before you decide.
I'll tell you the number you need to hear, not the one you want to hear. No pressure, no rush, and no games.
Talk with Cory Salisbury, Realtor with KW Westfield, helping Utah families since 2012.
General market education, not mortgage, financial, tax, or legal advice, and not a mortgage broker or lender. Figures are illustrative estimates using a $500,000 example price and a 6.5% example rate for comparison purposes only, current as of the sources and dates cited above. Actual rates, terms, fees, and eligibility are determined by a licensed lender and change over time. Cory Salisbury, Realtor, KW Westfield. Equal Housing Opportunity.
General market education, not mortgage, financial, tax, or legal advice, and not a mortgage broker or lender. Figures are illustrative estimates using a $500,000 example price and a 6.5% example rate for comparison purposes only, current as of the sources and dates cited above. Actual rates, terms, fees, and eligibility are determined by a licensed lender and change over time. Cory Salisbury, Realtor, KW Westfield. Equal Housing Opportunity.
