FHA Home Loan

An FHA loan is insured by the Department of Housing and Urban Development..

Currently Licensed States


FHA Home Loan

The Federal Housing Administration (FHA) was created by the The National Housing Act of 1934 to operate loan insurance programs to increase new home construction and reduce unemployment. FHA loans Utah does not make loans to borrowers, but does provide insurance to the lending institution that protects the money lent to a borrower.

Buying a home in Utah? Utah conforming and FHA loan limits by county. Bank rate compiled the conforming loan limits data from Federal Housing Finance Agency and the Utah County FHA loan limits from the U.S. Department of Housing and Urban Development (HUD).

Loan Uses

An FHA home loan can be used for the following transactions:

  • Purchase – Finance the purchase of an existing home or new construction home.
  • Streamline – Refinance an existing Utah FHA home loan requirements without income documentation or an appraisal in Utah.
  • Rate & Term Refinance – Refinance any current mortgage loan(s) that were used to purchase a home that provides a financial benefit by lowering the Utah FHA mortgage loan interest rates or monthly payment. Second mortgage loans that are less than one year old and were not used to purchase the property can be subordinated to a new FHA home loan. Borrowers are unable to receive more than $500 cash back at closing. Texas residents may not receive any cash back at closing.
  • Cash out Refinance – Utilize the equity in your home to consolidate debt, make home improvements or to receive cash for any need. A cash out refinance is not available for Texas residents.

Loan Amounts

Loan amounts for an FHA home loan vary by county in which the property is located in.

Down Payment

A down payment is required on an FHA home loan. The minimum down payment is 3.5%, but some FHA loan programs may require as little as $100. A buyer may also put down as much money as desired.

Regardless of the down payment amount, mortgage insurance is required for the life of the FHA loan.

Mortgage Insurance

Monthly mortgage insurance is required on any FHA home loan for the life of the loan regardless of the loan-to-value (LTV). Choosing an FHA mortgage loan calculator Utah loan will require the payment of both an upfront and a monthly mortgage insurance premium. The FHA upfront mortgage insurance premium is typically financed into the loan amount.

Property Types

An FHA home loan may be used for the purchase or refinance of the following property types:

  • Single family residenceone unit, attached or detached including town homes
  • Multi-unit – two to four units
  • Mixed Use Property – condominiums & PUDs where the commercial space does not exceed 49%
  • Condominiums – FHA approved condos Utah or warrantable
  • Planned Unit Developmentsattached or detached
  • Leaseholds – lease extends ten years past mortgage maturity and is rented at market rate

Credit Requirements

Credit requirements for an FHA home loan are less stringent than other loan programs. All borrowers on an application must have at least a 580 FICO score with two or more credit bureaus.


A property must be owner-occupied, except non-occupant co-borrowers are allowed.

Apply for an FHA home loan today!


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