Quick Answer: Most Utah lenders recommend keeping your total monthly housing payment — including principal, interest, taxes, and insurance — below 28% of your gross monthly income. For a household earning $90,000 per year ($7,500/month), that means a maximum payment of about $2,100. At current rates around 6.5%, that supports a purchase price of roughly $380,000 to $420,000 depending on your down payment, property taxes, and insurance costs.
The 28/36 Rule for Utah Home Buyers
Lenders use two debt-to-income (DTI) ratios to determine how much you can borrow:
- Front-end ratio (28%): Your monthly housing payment should not exceed 28% of your gross monthly income
- Back-end ratio (36-43%): Your total monthly debts (housing + car payments + student loans + credit cards) should not exceed 36-43% of gross income
FHA loans allow a higher back-end ratio of up to 50% in some cases, which is why many Utah first-time buyers qualify for more home than they expect.
Utah Affordability by Income Level
| Household Income | Max Monthly Payment (28%) | Estimated Purchase Price | Down Payment (3.5% FHA) |
|---|---|---|---|
| $60,000 | $1,400 | $260,000 - $290,000 | $9,100 - $10,150 |
| $75,000 | $1,750 | $320,000 - $360,000 | $11,200 - $12,600 |
| $90,000 | $2,100 | $380,000 - $420,000 | $13,300 - $14,700 |
| $110,000 | $2,567 | $460,000 - $510,000 | $16,100 - $17,850 |
| $130,000 | $3,033 | $540,000 - $600,000 | $18,900 - $21,000 |
Estimates assume 6.5% rate, 30-year fixed, Utah County property taxes (~0.55%), and $150/mo homeowners insurance. Your actual numbers may vary.
Factors That Increase Your Buying Power in Utah
- Down payment assistance: Utah County offers up to $40,000 in DPA at 0% interest. Davis County offers up to $50,000. These programs can dramatically increase what you can afford.
- Lower interest rates: Utah Housing Corporation (UHC) programs often offer rates 0.25-0.75% below market, which adds $15,000-$30,000 in buying power.
- FHA loans: With only 3.5% down and higher DTI allowances, FHA loans let buyers qualify for more than conventional loans in many cases.
- VA loans: Zero down payment and no PMI mean veterans can afford significantly more home on the same income.
What About Utah's Property Taxes?
Utah has some of the lowest property taxes in the nation, averaging about 0.55% of home value. This keeps your monthly payment lower compared to states like Texas (1.6%) or Illinois (2.1%). On a $400,000 home, you'd pay roughly $183/month in property taxes — about $175/month less than you would in Texas.
Get a Personalized Estimate
Online calculators give you a starting point, but your actual buying power depends on your credit score, existing debts, the loan program you choose, and available DPA. A 10-minute conversation with a loan officer can give you a precise pre-approval amount — often higher than what online tools suggest.
Ready to Get Started?
Get a personalized pre-approval or schedule a free consultation with Felix Vivanco.
