The three government-backed loans work differently in Utah County than the national explainers suggest, because of where the county's houses sit. FHA is used everywhere and runs into a ceiling on price. VA is the most generous of the three, for the people who qualify. USDA, the zero-down rural loan, is off the table in Provo and Orem but still alive in a ring of towns around the south end of the county and west of the lake.
This guide covers what each loan does here, the 2026 numbers, the USDA map in detail, and how to find lenders who handle each one. It is general information about federal programs as of October 2026, not financial advice. Program rules change, and your lender's own requirements can be stricter than the agency's.
The short answer, by buyer
| If you are... | Look first at | The Utah County catch |
|---|---|---|
| A first-time buyer with modest savings | FHA | The $601,450 limit and condo approval |
| A veteran or service member | VA | Finding sellers and agents who know it |
| Buying in Payson, Santaquin or the west side | USDA | Income limit and the exact address |
| Putting 20 percent down with good credit | Conventional | Usually none of these three |
The 2026 numbers that set the limits
FHA, one unit, Utah County: $601,450. This figure appears identically on two independent mortgage-data sources (HSH and Homebuyer.com) built on HUD's limits. HUD's own 2026 announcement sets the national one-unit floor at $541,287 and the ceiling at $1,249,125, effective for case numbers assigned on or after January 1, 2026, so Utah County sits above the floor. HSH lists the county's multi-unit FHA limits as $769,950 for two units, $930,700 for three and $1,156,650 for four, which matters for anyone house-hacking a duplex.
Conforming, one unit: $832,750. That is the FHFA's 2026 baseline, and Homebuyer.com lists the same figure for Utah County. It matters for VA borrowers with partial entitlement, as explained below.
Utah does not publish sale prices, so we do not print a median here. The practical test is simpler: compare the FHA limit to the asking prices of the homes you are touring, remembering that the limit caps the loan, not the price. Our Provo buying guide explains why prices are hard to pin down in a non-disclosure state.
FHA: the default first-time loan, with two Utah County traps
FHA does not lend money. It insures loans that FHA-approved lenders make. HUD's own consumer flyer lists the features that matter: down payments "as low as 3.5 percent," loan limits that vary by county, and non-occupant co-borrowers, so that "an eligible person, such as a parent, can help a borrower qualify." That last feature is why FHA comes up so often with BYU and UVU students buying with family help. Our guide to buying with parents covers it.
Credit. HUD's handbook ties the down payment to the borrower's minimum decision credit score: at or above 580 qualifies for maximum financing, and 500 to 579 is limited to 90 percent of value. In Mortgagee Letter 2026-11, dated October 8, 2026, HUD said FHA will accept FICO 10T and VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027, with the same score thresholds. Individual lenders can set higher minimums than HUD's.
Mortgage insurance. Under Mortgagee Letter 2023-05, effective March 20, 2023, every FHA loan carries an upfront premium of 1.75 percent of the base loan amount, plus an annual premium. For a loan longer than 15 years with a base amount of $726,200 or less:
- more than 95 percent loan-to-value (the 3.5 percent down buyer): 0.55 percent a year, for the life of the loan;
- over 90 up to 95 percent: 0.50 percent, for the life of the loan;
- 90 percent or less: 0.50 percent, for 11 years.
The life-of-loan premium is the part people discover later. On a minimum-down FHA loan, the only way to stop paying it is to pay the loan off, which in practice usually means refinancing into a conventional loan once you have enough equity. Our guide to refinancing in Utah covers when that math works.
Trap one: condos. For most condo purchases, the project itself must be FHA-approved, and approval turns on things a buyer cannot control, from the HOA's reserves to how many units are rented. Our guide to townhomes and condos in Utah County explains how to check, and why the difference between a "townhome" and a "condo" on a listing can decide which loan you can use.
Trap two: the appraisal is not an inspection. The state-approved FHA/VA Loan Addendum says it plainly: "an FHA/VA appraisal does not constitute a property inspection," and neither agency warrants the value or condition. Buy the inspection anyway.
VA: the strongest loan here, if you qualify
A VA-backed purchase loan, according to VA.gov, requires no down payment as long as the price does not exceed the appraised value, and no private mortgage insurance. You must have a Certificate of Eligibility and live in the home. Eligible property types include single-family homes of up to four units and condos in VA-approved projects.
Loan limits. The VA's loan limits page says that with full entitlement there is no VA loan limit, though the lender still has to approve the loan and the appraisal has to support the price. With entitlement still tied up in an earlier VA loan, the remaining entitlement is calculated from the county's one-unit conforming limit, and a lender may ask for a down payment once the loan goes past what that entitlement covers. In Utah County the starting figure for that calculation is $832,750.
Funding fee. The VA's table, labeled effective April 7, 2023, lists these purchase rates:
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Veterans receiving VA compensation for a service-connected disability are exempt, along with surviving spouses receiving Dependency and Indemnity Compensation and a few other groups.
What the seller sees. The state's FHA/VA addendum gives a VA buyer protections a seller should understand before accepting: it lets the buyer walk away with the deposit if the price exceeds the VA's reasonable value, and it can require the seller to pay for appraisal-required repairs up to a capped amount and, where VA rules require, a termite report. A buyer's agent who has closed VA loans can explain those terms to a seller before they become an objection.
Utah also offers a state grant on top. Utah Housing Corporation lists a Utah Homebuyer Veteran Grant of up to $2,500 for first-time Utah homebuyers who are service members or veterans separated within the last five years. Our Utah Housing Corporation guide has the details.
USDA: the map is the whole story
USDA's Section 502 guaranteed loan offers 100 percent financing on a 30-year fixed rate to households with income up to 115 percent of the area median who will live in the home, according to USDA Rural Development. Loans go through USDA-approved lenders. The rural part is defined by a map, and in Utah County that map draws a hard line.
We checked points across the county against the "ineligible areas" layer that powers USDA's property eligibility map on October 19, 2026. The ineligible boundary in Utah County carries an effective date of July 25, 2023.
| Area checked | Result |
|---|---|
| Provo, Orem, Vineyard | Ineligible |
| Lehi, American Fork, Pleasant Grove, Lindon | Ineligible |
| Alpine, Highland, Cedar Hills | Ineligible |
| Springville, Mapleton, Spanish Fork | Ineligible |
| Eagle Mountain, Saratoga Springs | Ineligible |
| Palmyra area (west of Spanish Fork) | Ineligible |
| Salem, Payson, Elk Ridge, Woodland Hills | Eligible |
| Santaquin, Genola, Goshen, Elberta | Eligible |
| Spring Lake, Benjamin, Lake Shore, West Mountain | Eligible |
| Cedar Fort, Fairfield | Eligible |
A few things about that table. Each line reflects one or more points we checked, mostly near the town center, plus extra checks on the edges of Payson, Spanish Fork, Eagle Mountain and Saratoga Springs. Boundaries do not follow city limits exactly. And USDA describes the dataset as one that "changes often." The result is a guide to where to look, not a promise about a particular house. Enter the exact address on USDA's map before you write an offer.
The second test is household income, set by county and household size. Rural Development's income tool for Utah County, which sits in the Provo-Orem-Lehi metro area, asks for the household's size, members under 18 or disabled, and age, then compares the household's adjusted income to the county limit. Run it with your lender rather than relying on a figure from a website, including this one.
What USDA buyers in Payson or Santaquin give up: the loan is for a primary residence, not an income property, and only on a 30-year fixed term. What they gain is the only true zero-down option for a non-veteran in the county. If you are weighing the south end against the north, our guide to buying a home near Provo compares the towns.
Finding lenders who do each loan
FHA. HUD points borrowers to its lender search at hud.gov/fha. Beyond approval, ask a loan officer how often they close FHA loans and whether they have handled condo approvals in Utah County.
VA. VA loans come from private lenders. Ask each lender how many VA loans they closed in the last year and whether they can pull your Certificate of Eligibility electronically.
USDA. Rural Development maintains a list of approved lenders searchable by state, linked from the program page. Because so little of Utah County qualifies, a lender based in Provo may handle few USDA files. Asking directly is fine.
Pairing with state help. Utah Housing Corporation's FHA/VA program requires a minimum 620 credit score, works for first-time and repeat buyers, and caps household income at $165,200 in Utah County, according to UHC's limits page. Only UHC participating lenders can originate it. Provo City's own down payment loans require a fixed-rate first mortgage from a lender of your choice. Our guide to shopping a mortgage lender in Utah explains how to compare Loan Estimates across all of these once you have them, and our down payment assistance explainer covers how second loans layer on top.
What changes in the contract
When an FHA or VA loan is involved, the REPC's Section 2.1(c) points to the FHA/VA Loan Addendum, a two-page state-approved form. Its main terms:
- the buyer intends to occupy the home as a primary residence;
- the buyer is not obligated to buy, or to forfeit the deposit, if the price exceeds the FHA appraised value or the VA's reasonable value, though the buyer may choose to proceed anyway;
- the seller makes appraisal-required repairs up to a dollar cap written in;
- if FHA or VA rules require it, the seller provides a pest report and treats termites up to a separate cap;
- the seller may contribute a set amount toward rate buydowns, financing costs and prepaids, applied first to costs FHA or VA will not let the buyer pay.
Our guides to the Utah REPC and its deadlines show where those terms sit in the larger contract.
Frequently Asked Questions
What is the FHA loan limit in Utah County for 2026?
Can I get a USDA loan in Provo or Orem?
Do I need a down payment for a VA loan in Utah County?
What credit score do I need for an FHA loan?
How much is FHA mortgage insurance?
What is the VA funding fee in 2026?
Can I use an FHA loan on a condo in Provo?
How do I find a lender that does FHA, VA or USDA loans?
Sources
The facts in this guide were checked against these sources. Hours, fees and rules change, so confirm anything time-sensitive with the source before you go. How we make Provo.com.
- HUD's FHA Announces 2026 Loan Limits, HUD. Checked October 19, 2026.
- FHFA Announces Conforming Loan Limit Values for 2026, FHFA. Checked October 19, 2026.
- Mortgagee Letter 2023-05 (FHA MIP), HUD. Checked October 19, 2026.
- Mortgagee Letter 2026-11 (Minimum Decision Credit Score), HUD. Checked October 19, 2026.
- FHA-insured Mortgages are Good Choices (consumer flyer, rev. 8/7/2025), HUD. Checked October 19, 2026.
- VA purchase loan, U.S. Department of Veterans Affairs. Checked October 19, 2026.
- VA home loan limits, U.S. Department of Veterans Affairs. Checked October 19, 2026.
- VA funding fee and closing costs, U.S. Department of Veterans Affairs. Checked October 19, 2026.
- Single Family Housing Guaranteed Loan Program, USDA Rural Development. Checked October 19, 2026.
- Down Payment Assistance, Provo City. Checked October 19, 2026.
- Income and purchase price limits, Utah Housing Corporation. Checked October 19, 2026.
- Grants & Other Assistance Programs, Utah Housing Corporation. Checked October 19, 2026.
- FHA/VA Loan Addendum, Utah Division of Real Estate. Checked October 19, 2026.
- 2026 FHA Loan Limits for Utah, HSH.com. Checked October 19, 2026.
- Utah County, UT mortgage loan limits, Homebuyer.com. Checked October 19, 2026.
- USDA property eligibility (Eligibility MapServer layer 4, SFH ineligible areas, queried by point), USDA Rural Development. Checked October 19, 2026.
