Quick Answer: The minimum credit score to buy a house in Utah depends on the loan type: FHA loans require a 580 score for 3.5% down (or 500 with 10% down), conventional loans typically require 620, VA loans have no official minimum but most lenders require 580-620, and USDA loans require 640. However, a higher score — 680 or above — will get you significantly better interest rates and lower monthly payments.
Credit Score Requirements by Loan Type
| Loan Type | Minimum Score | Best Rates | Down Payment |
|---|---|---|---|
| FHA | 580 (3.5% down) / 500 (10% down) | 680+ | 3.5% |
| Conventional | 620 | 740+ | 3-20% |
| VA | 580-620 (lender varies) | 680+ | 0% |
| USDA | 640 | 680+ | 0% |
| Utah Housing (UHC) | 660 | 700+ | 0% (with DPA) |
How Your Credit Score Affects Your Rate in Utah
The difference between a 640 and a 740 credit score can mean 0.5% to 1.5% higher interest rate. On a $400,000 loan, that translates to $120 to $380 more per month — or $43,000 to $137,000 more over the life of the loan.
- 740+ score: Best available rates, lowest PMI costs, most loan options
- 700-739: Very good rates, slightly higher PMI
- 660-699: Good rates, qualifies for most programs including UHC
- 620-659: Higher rates, limited to FHA and some conventional programs
- 580-619: FHA only, higher rates and mortgage insurance
Quick Ways to Improve Your Score Before Buying
- Pay down credit card balances to below 30% of your limit (below 10% is ideal)
- Don't open new accounts or apply for new credit in the 6 months before applying
- Don't close old accounts — length of credit history helps your score
- Dispute any errors on your credit report through annualcreditreport.com
- Become an authorized user on a family member's old, well-managed card
Many buyers can improve their score 20-50 points in 60-90 days with the right strategy. Felix works with a credit optimization partner who can create a personalized improvement plan for you — at no cost.
Can I Buy a House With Bad Credit in Utah?
Yes. FHA loans are specifically designed for buyers with less-than-perfect credit. With a 580 score and 3.5% down, you can buy a home in Utah. Some buyers have purchased homes with scores as low as 500 using the FHA 10%-down option. The key is working with a loan officer who specializes in credit-challenged buyers and knows which programs fit your situation.
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