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Government-backed financing with low down payments and flexible credit requirements
FHA loans are mortgages insured by the Federal Housing Administration. Because the government backs the lender against default, lenders can offer lower down payment requirements and more flexible qualification standards, making homeownership accessible to more Utah buyers.
Use this as a map of typical overlays, not a score. A loan officer still has to apply the guide that is in force for your product and your documentation.
Typical program differences as of 2026-08. Confirm current published rules.
Swipe sideways to compare every column.
| Question | Conventional | FHA | VA |
|---|---|---|---|
| Credit (typical overlay, not a promise) | 620 (overlays often higher) | HUD allows 580+ for 3.5% down and 500–579 with 10% down. Many lenders set higher overlays. A 500 score is not a promise that a file will be originated. | VA does not publish a single FICO floor. Lender overlays still apply. |
| Down payment / equity | Some first-time and low-down conventional products start around 3% down for eligible borrowers. | 3.5% down at 580+ under HUD policy; overlays often sit higher. 10% at 500–579. | Zero down is available only with remaining entitlement and when the loan otherwise meets VA and lender guidelines. It is not automatic for every veteran. |
| Occupancy | Primary, second home, and investment, each with different pricing and overlays. | Primary residence (with limited exceptions) | Primary residence. Remaining-entitlement cases still have an occupancy test. |
| Property type | 1–4 units, condos and PUDs when the project meets investor rules. | 1–4 units as a primary. Condos need FHA project approval. HUD minimum property standards apply. | VA MPRs and an occupancy appraisal. Condos need VA project approval. |
| MIP / PMI / funding fee / guarantee fee | Conventional PMI can usually be removed once the loan reaches the investor’s equity threshold (commonly 20% based on original value, or by a new appraisal under the program rules). | Upfront MIP 1.75% of the base loan amount (often financed). Annual MIP is a range that depends on term, loan amount, and LTV. It is not a single published percent for every file. Life-of-loan MIP is common below 10% down. | Funding fee may apply or be waived. First-use, less than 5% down snapshot: 2.15%. The funding fee is typically waived for veterans with a qualifying service-connected disability rating and for some surviving spouses. Entitlement and occupancy rules also apply. No monthly PMI. |
| Loan limits | FHFA conforming limit for the property county. Look up this year’s table. | HUD FHA county limit. Different table from FHFA. Look up the property county. | County limits matter when entitlement is partial. Full entitlement files follow current VA/FHFA interaction. Confirm, do not memorize a number. |
Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision.
Education first. A conversation with a loan officer is how you find out what may actually fit your file.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures