FHA Loans in Herriman, Utah

The minimum credit score for an FHA loan with 3.5% down is 580. If your credit score is between 500 and 579, you may still qualify with a 10% down payment. These are FHA minimums, individual lenders may have overlays that require higher scores. We work with multiple FHA-approved lenders to find the best fit for your credit profile. If your score is below the minimum, we can recommend credit counseling resources to help you get mortgage-ready.

FHA loans require both an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount and an annual mortgage insurance premium (MIP) paid monthly. The annual MIP rate depends on your loan amount, down payment, and term length. For most borrowers putting 3.5% down on a 30-year loan, the annual MIP is 0.55% of the loan balance. Unlike conventional PMI, FHA MIP remains for the life of the loan unless you refinance to a conventional loan after building sufficient equity.

Yes. FHA loan limits vary by county and are updated annually. In Utah County and Salt Lake County, the current FHA loan limit for a single-family home is significantly higher than the national baseline. We can confirm the exact limit for Herriman and help you determine if the median home price in your desired neighborhood falls within FHA limits. If you need a loan above the FHA limit, we can explore conventional and jumbo options.

Yes. The FHA 203(k) rehabilitation loan lets you finance both the purchase price and renovation costs in a single mortgage. There are two types: the Limited 203(k) for cosmetic improvements up to $35,000, and the Standard 203(k) for larger structural renovations. This can be especially valuable in older neighborhoods where homes may need updating. We guide you through the contractor selection and draw process.

This is the key question for Herriman investors. Builder activity has been intense, and new single-family homes and townhomes continue to enter the market. During the 2020–2022 period, demand easily absorbed supply, but the pace has moderated. Rental supply competition includes builder-held spec homes and build-to-rent developments. Existing investors should focus on competitive pricing and presentation to hold tenants against newer options. For new investors, careful underwriting that accounts for potential rent softening is prudent. The long-term demand drivers (population growth, Silicon Slopes employment) remain strong, but near-term supply dynamics warrant attention.

Herriman's residential growth outpaced commercial development for years, forcing residents to drive to Riverton or South Jordan for shopping and dining. This has improved significantly with new retail along Mountain View Corridor and the emerging Herriman Town Center, but the city still lacks the commercial depth of more established cities. For investors, this means tenants currently depend on cars for most errands and entertainment. However, the trajectory is positive, each new commercial development improves livability, and the city's General Plan shows extensive commercial zones that will fill in over time.

Herriman's far southwestern position means longer commutes to downtown SLC (35–45 minutes) and limited transit options. This location discount keeps prices below South Jordan and Draper for comparable homes. For investors, this means moderate appreciation but strong rental yields from tenants who want new-build quality at accessible price points. Silicon Slopes commuters (15–20 minutes) are the sweet spot. The Mountain View Corridor has significantly improved connectivity, and future transit expansion could further lift values if it materializes.