Quick Answer: There are three proven ways to buy a house in Utah with no money down: VA loans (for veterans and military), USDA loans (in eligible rural areas like Eagle Mountain, Spanish Fork, and Cache County), or by using county down payment assistance programs that cover your entire down payment and closing costs. Utah County offers up to $40,000 in DPA and Davis County offers up to $50,000 — enough to cover both the down payment and closing costs on most purchases.
Option 1: VA Loans — Zero Down for Veterans
If you're a veteran, active-duty service member, or eligible surviving spouse, VA loans are the gold standard:
- Zero down payment on any property in any Utah city
- No PMI (saving $100-$300/month)
- Competitive rates — often the lowest available
- No maximum loan amount with full entitlement
- Can be used multiple times
Option 2: USDA Loans — Zero Down in Eligible Areas
USDA loans offer 100% financing in designated rural areas. Despite the name, many suburban Utah cities qualify:
- Eagle Mountain, Saratoga Springs, Spanish Fork, Springville, Payson
- Tooele, Grantsville, Stansbury Park
- Most of Cache County (Logan, North Logan, Smithfield)
- Parts of Herriman, Clinton, Syracuse, West Point
- Cedar City, Hurricane, and much of rural Utah
Option 3: DPA Programs Covering Everything
Even on FHA or conventional loans that require a down payment, Utah's DPA programs can cover the entire amount — effectively making it a no-money-down purchase:
- Utah County: Up to $40,000 at 0% interest, deferred payments
- Davis County: Up to $50,000 at 1% interest, no monthly payments
- Salt Lake County: Up to $20,000 for first-time buyers
- Utah Housing DPA: Up to 6% of loan amount as a second mortgage
For example: On a $400,000 FHA purchase, you'd need $14,000 for the 3.5% down payment plus ~$12,000 in closing costs = $26,000 total. Utah County's $40,000 DPA covers it all with $14,000 to spare.
What About Closing Costs?
Even with zero down, you still have closing costs (2-4% of purchase price). These can be covered by:
- DPA programs (most cover both down payment and closing costs)
- Seller concessions (up to 3-6% depending on loan type)
- Lender credits (accept a slightly higher rate, lender covers costs)
- Gift funds from family members
Ready to Get Started?
Get a personalized pre-approval or schedule a free consultation with Felix Vivanco.
