FHA Basics in Utah

Here are a few basic rules that you should know about when using an FHA Mortgage Loan to buy a home in Utah:

1. FHA requires at least a 3% investment from you (the buyer) of the home. However the 3% can be gifted to you from a relative or from a Non-Profit Foundation (aka Down Payment Assistance Program).

2. The Seller of the Home can contribute up to 6% of the Purchase Price of the home to pay for your closing costs and/or prepaid items such as taxes and insurance.

3. You must occupy the home that you are buying.


There are many more guidelines to an FHA Home Loan in Utah but this is a good start!

FHA Mortgage Limits Increase in Utah

Most of you have heard that they've increased FHA Mortgage Loan Limits in Utah as part of the new economic stimulus package. Here are some of the new loan limits for FHA in Utah per County:

Davis County - $397,500
Salt Lake County - $729,750
Tooele County - $729,750
Utah County - $323,750
Wasatch County - $431,250
Washington County - $372,500
Weber County - $397,500

This is fantastic news for places like Utah County where previously the FHA Loan Limit in Utah County was about $100,000 less than it is now! You can actually buy a home in Utah County using an FHA Mortgage.

Here's the caveat: At the moment if you borrow more than $417,000 with an FHA Loan in Utah you will probably end up getting a higher interest rate...probably about 1% higher. However, the interest rate will still be better than if you got a Jumbo Loan in Utah!