Buying a home in Utah with bad credit is achievable through specialized government-backed loans and state-specific assistance programs. While a lower credit score often leads to higher interest rates, programs like FHA loans and the Utah Housing Corporation's "Score Loan" provide accessible pathways for those with credit scores as low as 500–620. Key Mortgage Options for Bad Credit
: This state-specific program is designed for buyers who do not meet standard credit requirements. It requires a minimum mid-score of 620 and pairs an FHA first mortgage with down payment assistance. buying a home in utah with bad credit
: UHC provides second mortgages (like the FirstHome or Score Loan DPA) that can cover up to 4%–6% of your loan amount for down payments and closing costs. Local Grants : Own in Ogden : Up to $20,000 for first-time buyers in Ogden. It requires a minimum mid-score of 620 and
: Up to $50,000 in assistance for income-qualifying buyers. : Up to $50,000 in assistance for income-qualifying buyers
Utah offers some of the most generous assistance in the country, which can be "stacked" to cover upfront costs:
: These are the most common choice for bad-credit buyers. You can qualify with a credit score as low as 500 if you have a 10% down payment, or 580 with just a 3.5% down payment.
: If you are a veteran or active-duty service member, VA loans often have no official minimum credit score (though many lenders prefer 580–620) and require $0 down payment .