Think you need 20% down or have to wait until you can afford your dream home? You may have more options than you realize. For many first-time buyers, getting into the Utah housing market can feel overwhelming. Home prices are high, saving for a down payment takes time, and it can be difficult to know where to start. But two common assumptions may be holding you back: that you need 20% down and that your first home needs to be your forever home. Neither is necessarily true.
Here are two strategies worth considering if you're hoping to become a homeowner sooner.
1.) You Don't Necessarily Need 20% Down
One of the biggest misconceptions among first-time buyers is that you need to save 20% before you can purchase a home. You don't.
Depending on the loan program and your qualifications, some conventional mortgages allow down payments as low as 3%, while FHA-insured loans can allow as little as 3.5%. Eligible veterans and service members may qualify for VA-backed financing with no down payment, and certain buyers purchasing qualifying properties in eligible rural areas may qualify for USDA financing with no down payment.
A smaller down payment can make homeownership accessible sooner—but it doesn't automatically make the purchase less expensive. With many conventional loans, putting less than 20% down means paying private mortgage insurance (PMI). FHA loans have their own mortgage insurance requirements, while VA loans have a different fee structure. So instead of asking, “How can I put down as little as possible?”, ask: “What down payment allows me to buy comfortably while keeping enough savings in reserve?”
What does that look like? On a hypothetical $400,000 home:
- 3% down: $12,000
- 5% down: $20,000
- 10% down: $40,000
- 20% down: $80,000
Your down payment isn't the only cash you'll need. You'll also want to account for closing costs, prepaid expenses, inspections, moving expenses, and an emergency fund.
That's why talking with a lender early can be so valuable. They can help you understand what you may qualify for and what your estimated total cash to close could look like.
2.) Your First Home Doesn't Have to Be Your Dream Home
The second question to consider is whether you're waiting for the wrong house. Your first home doesn't have to check every box. A condo, townhome, smaller single-family home, or property in an established neighborhood may give you a more attainable entry point into the market. In Utah, that might mean choosing a smaller home in a neighborhood you love rather than stretching your budget for more square footage. It could mean considering a townhome instead of a detached home, or prioritizing location and lifestyle over finishes and size.
The goal isn't to buy something you'll immediately outgrow. It's to find a home that works for your life and your finances right now. And before buying, consider how long you realistically expect to stay. Buying and selling both involve costs, so purchasing generally makes more sense when you're able to stay long enough to make the commitment worthwhile.
What About Down Payment Assistance in Utah? This is another question we hear often and it's worth investigating.
The Utah Housing Corporation offers mortgage and down payment assistance programs for eligible buyers through participating lenders. Requirements vary by program and can include income, credit, purchase price, property type, and first-time buyer requirements.
Some assistance is structured as a loan rather than a grant, so it's important to understand the repayment terms before moving forward.
For example, Utah Housing Corporation currently offers a First-Time Homebuyer Assistance Program for qualifying buyers purchasing certain newly constructed homes. Under the program's current guidelines, eligible buyers may receive up to $20,000 in assistance, subject to program requirements and a $450,000 purchase-price limit.
Programs and funding can change, so your lender should confirm current eligibility and terms before you make a purchase decision.
So, Where Do I Actually Start?
If you've never purchased a home before, you don't need to know everything before you begin.
Start here:
- Know your numbers: Look at your income, savings, monthly expenses, debt, and credit. Determine how much cash you could comfortably put toward a purchase without draining your reserves.
- Talk to a lender. A good lender can help you understand your loan options, estimated monthly payment, down payment requirements, and potential assistance programs. Getting preapproved also gives you a much clearer idea of what you can realistically shop for.
- Decide what matters most. Before looking at homes, identify your priorities. Where do you want to live? How important is your commute? Do you need a yard? Would you consider a townhome or condo? Which features are non-negotiable and which ones are simply nice to have? Your lifestyle should help shape your search.
- Find a seasoned local agent. Once you understand your budget, a knowledgeable Utah real estate professional can help you navigate neighborhoods, compare properties, evaluate pricing, and understand the process from offer to closing. For a first-time buyer, that guidance can make an unfamiliar process considerably easier to navigate.
You May Be Closer Than You Think
Buying your first home doesn't require having everything figured out. You may not need 20% down. You may not need your forever home. And you don't need to understand every mortgage program before you take the first step. What you do need is a realistic budget, a clear understanding of your options, and experienced people around you who can help you make informed decisions.
At Modern & Main Real Estate, our seasoned agents know the Utah market and the neighborhoods, properties, and communities that make it unique. If you're wondering whether buying your first home is realistic, start with a conversation. Visit modernandmain.com to learn more about our brokerage and connect with a seasoned Utah real estate professional.
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