Utah USDA Loans with 100% Financing
A USDA guaranteed loan can finance 100% of a primary home when the address is in an eligible area and the household is within the income limit. Start with the map. Salt Lake City, Provo, and most of the urban Wasatch Front typically do not qualify.
Check the address before you count on 100% financing
USDA eligibility is parcel by parcel. This page does not name Utah cities as eligible, because a map can include one street and exclude the next, and the boundaries change. Salt Lake City, Provo, and most of the urban Wasatch Front typically do not qualify. Confirm the property on the USDA eligibility map before you treat USDA as an option.
Check the address first
100% financing applies only in a USDA-eligible area. A city name is not enough. Use the official eligibility map.
Guaranteed rural loan
This is the USDA single-family guaranteed program for a primary home, including many places that are suburban rather than farmland.
Income limits apply
Household income has to fall within the USDA limit for that county and household size. The dollar cap changes.
A mortgage, not a grant
USDA is the first mortgage. It is grouped here with VA and professional loans, not with forgivable DPA.
What has to be true
USDA guaranteed loans are for buyers who fit the income limit and a home the map allows. This page does not quote an interest rate or a dollar income cap.
- The property address is eligible on the current USDA map
- You will live in the home as your primary residence
- Household income is within the limit for the county and household size
- Credit and debt ratio meet the lender’s USDA guidelines (many lenders look for a score around 640 for automated approval; a lower score can sometimes be reviewed manually)
- The home meets USDA property standards
Guarantee fee, not PMI
Instead of monthly private mortgage insurance, USDA charges an upfront guarantee fee that can be rolled into the loan, plus an annual fee. The Tim Hawkes Team’s USDA guide lists those as 1% upfront and 0.35% annual. Treat that as the published description, then confirm the fee USDA is charging on your file. The amounts are not an interest rate.
This is a first mortgage
City and county programs, and Utah Housing DPA seconds, help with cash to close. USDA is the loan that buys the house. Utah Housing’s first-mortgage options on this site are FirstHome, FHA/VA, and HFA Advantage. Use those when the address is not USDA-eligible. Their DPA seconds stay second mortgages.
Where this directory already allows USDA
A USDA loan already covers the down payment when you qualify. Extra assistance is only relevant if that program lists USDA as an eligible first mortgage.
FHLB HELP
The directory lists the $20,000 HELP grant as available with Conventional, FHA, VA, or USDA financing for eligible first-time buyers.
FHLB HELP detailsSalt Lake City CDCU
CDCU’s own steps say the first mortgage can be FHA, conventional, USDA, or VA. The home still has to be inside Salt Lake City limits, and that address may fail the USDA map even when the DPA program allows a USDA loan type. Check both.
Salt Lake City CDCU detailsOther 100% financing
If the address is not on the USDA map, VA and professional loans are the other specialty mortgages in this group. Grants and forgivable seconds stay in the DPA directory.
VA loans
100% financing is the typical benefit for eligible veterans, active duty, and certain surviving spouses, with a funding fee instead of monthly mortgage insurance.
Doctor and professional loans
Up to 100% financing for eligible licenses, with no monthly mortgage insurance. Those loans cannot be combined with a DPA lien.
USDA loan FAQ
Is a USDA loan a down payment grant?
No. A USDA Guaranteed Rural Housing loan is a specialty first mortgage. In an eligible area, qualified buyers can finance 100% of the price. It is not a grant, a forgivable second, or a Utah Housing Corporation DPA second mortgage.
Which Utah cities qualify for USDA?
Eligibility is by address, not by city name. Salt Lake City, Provo, and most of the urban Wasatch Front typically do not qualify. Do not assume a suburb is eligible because it feels rural, or ineligible because it has a grocery store. Check the specific property on the USDA eligibility map before you write an offer.
Do USDA loans have income limits?
Yes. The guaranteed program is for moderate-income households, and the cap depends on the county and how many people live in the household. This page does not publish a dollar cap, because USDA updates those limits. All household income counts, not only the borrowers on the loan.
Does every USDA buyer get 100% financing?
100% financing is available when the address is eligible, household income is within the limit, and credit, debt ratio, and the property qualify. It is not guaranteed for every buyer. The home has to be your primary residence. USDA is not for a second home or a rental you will not live in.
Does USDA charge mortgage insurance?
USDA does not use monthly private mortgage insurance. It charges a guarantee fee: an upfront fee that can be financed, and a smaller annual fee. The Tim Hawkes Team guide describes an upfront fee of 1% and an annual fee of 0.35%. USDA sets those amounts and they can change, so confirm the fee on your loan estimate.
Can USDA be combined with Utah down payment assistance?
Only where that program already lists USDA. FHLB HELP and Salt Lake City CDCU both name USDA as an allowed first-mortgage type. Utah Housing Corporation’s own first mortgages in this directory are FirstHome, FHA/VA, and HFA Advantage. Those are not USDA products, and the UHC DPA seconds attach to a UHC first mortgage.
Bring the address, then talk income
The Tim Hawkes Team can check a Utah address against USDA rules and the current income limit. The DPA quiz on this site screens grants and second mortgages, not USDA map eligibility.
USDA Single Family Housing Guaranteed loans are backed by USDA Rural Development. Area boundaries, income limits, and guarantee fees can change. This page does not quote an interest rate and is not a commitment to lend. Equal Housing Lender. Cornerstone Home Lending, a division of Cornerstone Capital Bank, SSB. NMLS #2258. Tim Hawkes NMLS #8785. Jake Peterson NMLS #1692825. Source: thetimhawkesteam.com/loans/usda. Map: USDA property eligibility. Looking for a grant instead? Start with the Utah DPA program directory or the first-time buyer guide.