The Utah FHA loan guide
FHA home loan requirements and how to apply in Utah
FHA home loan requirements come down to four checks: your credit, your income, the home itself, and whether you will live there. FHA does not lend you the money. It insures a loan from a regular lender, and that lender may add rules of its own. You do not need to be a first-time buyer, and FHA sets no income cap. In Utah, an FHA offer also carries a state form of its own.
The short answer
You qualify with a credit file FHA accepts, steady income, and a sound home you will live in.
- Your file: a credit score FHA accepts and two years of steady work
- Your plans: you move in soon after closing and make it your main home
- The home: safe, sound, and checked by an appraiser on FHA's list
Part 1 of 5
The basics
What an FHA loan is, who stands behind it, and the four things every borrower has to show.
The short answer
What an FHA loan is
In shortA regular lender makes the loan, and the Federal Housing Administration insures it. You and the home both have to meet FHA's rules.
An FHA loan is a home loan from an everyday lender, such as a mortgage company, a bank or a credit union. The Federal Housing Administration, part of HUD, never hands you the money. It insures the lender, so the lender is covered if the loan goes bad.
That insurance comes with a rulebook. HUD Handbook 4000.1 spells out who can borrow, what the home must pass, and how the file is checked. A lender has to follow it to keep the insurance.
FHA is not only for first-time buyers, and it has no income ceiling. An FHA purchase loan can buy a home of one to four units, or build one through a construction-to-permanent loan. FHA's 203(k) loan buys a home and pays for fixing it up, all in one loan.
You deal with the lender from start to finish. FHA never meets you; it sees only your file.
Who qualifies
Who qualifies for FHA home loans
In shortYou need a credit file FHA accepts, income you can show for the last two years, and a plan to live in the home. Each borrower also needs a valid Social Security number.
- You
Every borrower needs a valid Social Security number. U.S. citizens and lawful permanent residents qualify, and so do citizens of Micronesia, the Marshall Islands and Palau. Since May 2025, other non-permanent residents do not. There is no top age limit.
- Your credit
FHA sets a score floor, and many lenders set a higher one. No score at all? Rent and utility records can stand in, and a person reviews the file by hand. See what credit score you need.
- Your income and debts
The lender checks your last two years of work and income and confirms your job today. Your monthly debts must fit your income under FHA's limits. Student loans always count, even when they are deferred.
- Living there
At least one borrower moves in within 60 days of signing and plans to stay at least a year. It must be your main home. FHA covers one main home per person at a time, with a few exceptions, such as a job move of more than 100 miles.
FHA reads one score from your credit report: the middle of your three scores, or the lower of two. When two or more people borrow, it uses the lowest of those scores. Under HUD's handbook, a score of 580 or higher qualifies for FHA's smallest required down payment. A score from 500 to 579 can still qualify, but it needs a larger one. Below 500, FHA will not insure the loan.
Those are FHA's floors, not a promise. Many lenders set their own higher minimum, so two lenders can give you two answers on the same file.
A break from work does not end your chances. After a gap of six months or more, your income can count once you have been back at the same kind of work for six months. You also need two years of work before the gap. Buying with employment gaps covers the rest.
A family member who will not live in the home can still join your loan as a co-borrower. Every borrower takes title and signs the loan. A co-signer signs the loan too but does not own the home. A co-borrower who will not live there has to be a U.S. citizen or have a main home in the U.S.
Two limits catch people off guard. A co-borrower who is not family and will not live there makes the loan much smaller. And someone with money riding on the sale, such as the seller, the builder or an agent, cannot co-borrow or co-sign unless they are family. Buying with a co-borrower goes deeper.
Part 2 of 5
The hard stops
The debts, waits and rules that stop an FHA file, and how hard the loan is to get.
The hard stops
What can rule you out of an FHA loan
In shortA few things stop an FHA file, at least for now. Most of them have a way back: a payment plan, a paid debt, or time.
Every rule below comes from HUD Handbook 4000.1, as of November 2026. Clearing one does not promise an approval.
- 01Past-due federal debt
A defaulted federal loan, or money still owed from an old FHA loan, stops the file. Lenders check a federal list called CAIVRS. Once the debt is settled, you can go ahead.
- 02Behind on an FHA loan now
If you are late on an FHA loan today, you cannot get a new one until those late payments are cleared up.
- 03Federal tax debt
Taxes owed to the IRS rule you out, unless you have a repayment plan with at least three months of on-time payments. Paying ahead does not count toward the three.
- 04Court judgments
A judgment has to be paid, or put on a written plan with at least three months of on-time payments.
- 05Chapter 7 bankruptcy
Wait at least two years from the discharge date. Twelve months can be enough when events outside your control caused it, you can prove them, and you have handled money well since.
- 06Chapter 13 bankruptcy
You need at least 12 months of plan payments, all made on time, plus written permission from the bankruptcy court.
- 07Foreclosure or deed in lieu
The wait is generally three years from the day the title moved. A lender can make an exception when events beyond your control caused it, such as a serious illness or the death of a wage earner, you can prove them, and your credit has been rebuilt since. A divorce alone does not count.
- 08Short sale
The wait is generally three years from the title transfer. It does not apply if every mortgage and installment payment was on time in the 12 months before the sale.
- 09A rental or second home
FHA insures only a home you will live in. A purchase set up to build a set of rentals will not qualify.
Being in a credit counseling program does not count against you on its own. If one of these fits your story, the guides below cover each one in more detail.
Find your way back. A lender can tell you which one fits your file and what to do first.
How hard is it
Is an FHA loan hard to get?
In shortFHA is easier than many loans on credit history. It is stricter on the home, on living there, and on federal debts.
It depends on where your file is weak. FHA looks past some credit trouble that other loans weigh hard. In return, it asks more about the home and about where you will live.
FHA is more forgiving on
- A lower credit score, down to its floor
- No credit score at all, with rent and utility records
- Gift money from family, an employer or a charity
- A family member on the loan who lives somewhere else
FHA is stricter on
- The home's condition, checked by FHA's appraiser
- Moving in and living there
- Past-due federal debts and federal tax debt
- Who may co-borrow, and who is eligible to borrow
Neither list is a promise either way. The underwriter weighs your whole file.
Most FHA files run through FHA's automated scorecard first. When the scorecard sends a file to a person, an underwriter reviews it by hand under set limits. The underwriter is the person who decides whether the loan meets the rules. Strengths such as savings can stretch those limits a little.
Conventional vs FHA sets the two loans side by side, mortgage insurance included.
Part 3 of 5
The money
Your own share, gifts, Utah Housing help, seller help, and the insurance FHA charges.
The money
The cash you bring, and who can help
In shortFHA asks you to put in some money of your own, and your credit score sets how much. Gifts and some seller help can cover other parts of the cost.
FHA calls your share the minimum required investment. Its size depends on your credit score, as Part 1 showed. A lender can give you the real figure for a real home, or you can try the FHA calculator first.
FHA allows more sources of cash than many people expect, as long as each one is on paper.
| Source | Allowed? | What to know |
|---|---|---|
| Your own savings | Yes | The lender reads your bank statements to see where the money came from. |
| A gift | Yes | From family, an employer or labor union, a close friend with a clear tie to you, a charity, or a government homebuying program. You and the giver sign a gift letter with the giver's name, how you know each other, and the amount. |
| Utah Housing help | Yes, through some lenders | Utah Housing Corporation's loans and down payment help can sit on top of an FHA first loan. See Utah housing programs. |
| Seller help with costs | Yes, up to a cap | The seller, an agent, the builder or the lender may pay toward your closing costs, prepaid items and points, up to a cap FHA sets as a share of the price. That money cannot count as your own investment. |
| Cash kept at home | No | Money a giver keeps at home instead of in a bank is not accepted. |
FHA also charges mortgage insurance. There is an upfront premium, added to the loan or paid at closing, and a yearly premium paid a little each month. How long the yearly premium lasts depends on how big a stake you start with. With a bigger stake, it ends after a set number of years. Otherwise, it lasts as long as the loan.
FHA also caps how big a loan it will insure. The limit is set county by county each year, and HUD's free lookup shows the 2026 limit for any Utah county. Utah loan limits by county explains how they work.
The share you put in, the insurance and the seller cap depend on the loan and the home, and FHA can change them.
Part 4 of 5
The home
What FHA's appraiser checks, and the extra rules for condos, manufactured homes and fixer-uppers.
The home
What qualifies a home for an FHA loan
In shortThe home must be safe, sound and secure. An appraiser from FHA's list checks it, and any repairs FHA requires are done before closing.
HUD calls its basic test the Minimum Property Requirements, and a newly built home must also meet HUD's building standards. The appraiser who checks the home has to be on FHA's own list, which HUD calls the roster. That appraiser writes down every repair the home needs to meet the rules.
The lender can approve the home only after those repairs are done. If a problem cannot be fixed, the home cannot get an FHA loan. A lender is also not allowed to order a second appraisal just to raise the value or erase the repairs.
- Houses and small multi-units
A house, a townhome, or a home of two to four units where you live in one of them. Each one must pass the appraiser's safety and condition check. See house hacking in Utah.
- Condos
The condo project must be on FHA's approved list, or that one unit needs its own Single-Unit Approval, which has stricter rules. HUD's free condo search lists approved projects by county and city.
- Manufactured homes
It must be a one-family home of at least 400 square feet, with the HUD label showing it was built on or after June 15, 1976. It must sit on a permanent foundation, count as real estate, and have come straight from the factory or dealer to the site.
- Fixer-uppers
FHA's 203(k) loan can pay for the home and its repairs in one loan, on a home of one to four units. Ask a lender whether it offers one.
The appraisal is not an inspection. Your lender has to give you HUD's notice, For Your Protection: Get a Home Inspection, at first contact. The appraiser checks value and basic safety, not every system in the house, so hire your own inspector too.
Part 5 of 5
Applying in Utah
The steps from lender to keys, Utah's FHA/VA Loan Addendum, and where I fit.
How to apply
How to apply for an FHA home loan
In shortStart with an FHA-approved lender and a pre-approval. The FHA steps come after your offer: the case number, the appraisal, underwriting and closing.
- 1Find an FHA-approved lender
HUD's free lender search lists FHA-approved lenders by city, county or ZIP code. Talking with more than one lets you compare their answers and their costs.
- 2Gather your papers
Lenders usually ask for recent pay stubs, two years of W-2s or other income records, and bank statements. Add tax returns if you are self-employed, your ID, a gift letter if someone is helping, and any bankruptcy or foreclosure papers.
- 3Get pre-approved
The lender pulls your credit and checks your income, debts and savings. The pre-approval letter tells a seller that step is done.
- 4Make your offer
In Utah, your agent attaches the state's FHA/VA Loan Addendum to the purchase contract. It covers the appraisal, the repairs it asks for, and termites.
- 5Case number and appraisal
Once you are under contract, the lender opens an FHA case number and orders the appraisal from FHA's roster. Then underwriting reviews the file, and any required repairs get done.
- 6Close and move in
You sign at a Utah title company. At least one borrower moves in within 60 days and plans to stay a year or more.
A lender cannot order a second appraisal just to erase the list.
HUD-approved housing counseling agencies offer homebuyer classes and one-on-one help. HUD lists them online, or you can call (800) 569-4287.
In a Utah offer
The Utah form that goes with an FHA offer
In shortUtah has a state-approved FHA/VA Loan Addendum. It lets you walk away if the appraisal comes in low or the repairs run past the seller's cap, and it says you will live in the home.
Your agent attaches the FHA/VA Loan Addendum to the purchase contract on any FHA or VA offer. The Utah Real Estate Commission approved a new version along with the new purchase contract. A new state form took effect November 1, 2026; the earlier form may still be used through December 31, 2026. As of November 2026, the new form has these parts.
- 01You will live there
You state that the home will be your main home, and you check whether the loan is FHA or VA.
- 02A low appraisal
If the price is above FHA's appraised value, you do not have to buy, and you keep your earnest money, the deposit that shows the seller you are serious. You can still choose to go ahead.
- 03What the appraisal is not
The appraisal sets the most FHA will insure. FHA does not vouch for the home's value or condition, and the form says an FHA appraisal is not a property inspection.
- 04Repairs the appraisal asks for
The seller agrees to make them, up to a dollar cap the two of you write into the form.
- 05Repairs over the cap
If the required repairs cost more than the seller's cap, you can cancel by written notice no later than the Appraisal Deadline in your contract. Your earnest money comes back to you.
- 06Termites
If FHA asks for a pest report, the seller gets rid of any termites and fixes their damage, up to a separate cap on top of the repair cap.
- 07A truth line
On an FHA offer, you and the seller both certify that the contract terms are true. Any side deal must be written down and attached.
Only the price against the appraised value decides this fork. Repairs follow their own rule, drawn under How to apply.
HUD calls that walk-away line the amendatory clause. It has to be in the contract when you have not seen the appraised value before you sign.
From January 1, 2027, the new purchase contract and the new addendum are the only versions allowed. Until then, ask your agent which forms your offer uses. The closing itself happens at a Utah title company, and Utah has no state transfer tax on a home sale.
Where I fit
Where I fit on an FHA loan
In shortFHA's rules and the lender's underwriter decide your loan, not me. As a lender I can check your file against those rules, and in Southern Utah I can be your agent.
Whether your FHA loan is approved comes down to FHA's rules and the lender's underwriter. I cannot approve it on my own, and I cannot bend a rule in the handbook.
As your mortgage lender, I can check your file against FHA's rules before you start shopping. If a score, a debt or a waiting period stands in the way, I will tell you which one, and what it takes to clear it.
In Southern Utah, meaning Iron, Washington, Kane, Garfield and Beaver counties, my REALTOR license lets me write the FHA/VA addendum into your offer myself. You get me in one of those roles per purchase, not in both. How I Work explains each role.
I live in Cedar City, and I lend on homes anywhere in Utah. For a home outside those five counties, a partner agent I trust can show you homes there. If I am your lender on that purchase, that agent pays me no referral fee.
Questions, answered
What people ask about FHA loans
You can qualify with a credit score FHA accepts, steady income you can show for about the last two years, and monthly debts that fit that income. You must plan to make the home your main home and move in within 60 days of closing, and the home must pass FHA's condition check. Every borrower needs a valid Social Security number and must be a U.S. citizen or lawful permanent resident; citizens of three Pacific island nations also qualify. You do not have to be a first-time buyer.
The usual stops are a past-due federal debt, being behind on an FHA loan right now, IRS debt with no repayment plan, and unpaid court judgments. A recent bankruptcy, foreclosure or short sale means a wait first: generally two years after a Chapter 7 discharge and three years after a foreclosure or short sale. Buying a rental or a second home rules FHA out, and so does not meeting its residency rule. Many of these have a way back, such as a payment plan or time.
On credit, it is often easier than other loans. FHA accepts lower scores, files with no score at all, and gift money from family and others. It is stricter in other ways: you must live in the home, the home must pass FHA's condition check, and federal debts must be current. Lenders can also set a floor above FHA's, so two lenders may answer the same file differently.
HUD's handbook sets two floors. With a score of 580 or higher, you qualify for FHA's smallest required down payment. From 500 to 579, you can qualify with a larger one. FHA will not insure a loan for anyone scoring under 500. Many lenders set their own higher minimum, so ask yours. FHA uses your middle score, and when two people borrow, the lower of their two middle scores.
The home has to be safe, sound and secure. An appraiser on FHA's list checks it and writes down any repairs it needs, and the loan closes only after they are done. A condo must be in an FHA-approved project or get approval for that one unit. A manufactured home must be built after mid-1976, sit on a permanent foundation, and count as real estate. The appraisal is not an inspection, so get your own inspection too.
Start with a lender that is approved to make FHA loans; HUD's website lists them. The lender pulls your credit, checks two years of income and your bank statements, and gives you a pre-approval. Once a home is under contract, the lender opens an FHA case number, orders the FHA appraisal, and sends the file to underwriting. You close at a title company and move in within 60 days.
FHA sets no minimum and no maximum income. What matters is whether your steady income covers the new house payment plus your other monthly debts within FHA's limits, and those limits depend on your whole file. A lender can tell you what price range fits your income, or you can run your own numbers on a calculator first.
Keep exploring
More guides on FHA and your loan choice
Six guides on comparing loans, credit scores, Utah Housing help, gifts, pre-approval, and the USDA loan.
Choosing your loanConventional vs. FHA in UtahConventional or FHA for a Utah home: how your credit, cash on hand, the property, and how long the mortgage insurance lasts decide which loan fits you.Read the guide
Buyer hurdlesWhat credit score do you need to buy a house?No single credit score gets you a house. The minimum depends on the loan program and your full financial picture, and a lender can tell you where you stand.Read the guide
First-time buyersUtah Housing programs, by nameUtah's first-time buyer programs, explained plainly: FirstHome, HomeAgain, Score, NoMI, and down payment assistance, and how to start with a lender.Read the guide
First-time buyersGift funds for a down payment in UtahHow a family down payment gift works on a Utah purchase: the line between a gift and a loan, the signed gift letter a lender needs, and the paper trail.Read the guide
First-time buyersMortgage pre-approval, finally explainedWhat pre-approval actually means for a first time Utah buyer: how it differs from prequalification, the documents you bring, and why sellers ask for it.Read the guide
Choosing your loanUSDA loans in UtahFor buyers who qualify, a USDA loan can mean no down payment on a rural or small-town Utah home. How the location and income tests decide eligibility.Read the guideFHA mortgage calculator Affordability calculator Debt-to-income calculator Every guide on Moving Utah
Not advice. This content is for general information only. It is not legal, tax, investment, or financial advice. Consult a qualified professional for guidance specific to your situation.
How my dual role works. I am licensed in both real estate and mortgage lending. On any single purchase I take one role only, never both at once, and every role is disclosed. You are always free to choose your own agent and your own lender. The full explanation is on How I Work.
Who approves an FHA loan. FHA's rules and the lender's underwriter decide whether an FHA loan is approved. Neither of my roles gives me that call.
Partner agents when I am your lender. Need an agent for the search? I can connect you with a partner agent I trust in your area. When I am your mortgage lender, I receive no referral fee or other payment from that agent or their brokerage. You are always free to choose your own agent and your own lender.
Talk to Scott
Wondering if FHA fits? Let's check your file against the rules
Tell me what you know about your credit, your income and the home you want. As your lender, I can show you which FHA rule, if any, stands in your way, and what it takes to clear it. There is no pressure, and you are never bound to borrow from me.
Why work with me
- The rules, in plain words.Credit, income, the home and living there, matched against your own file.
- Lender or agent, never both.On a given purchase you know which role I am in before we start.
- Clear about who decides.FHA's rules and the underwriter approve the loan, and I say so up front.
- Answers within a business day.Call, text or write the lending line for a reply within one business day.
Or call me: (435) 357-4345I reply within one business day.
