Best Mortgage Lenders for First Time Home Buyers in Utah

Plan to buy a home in Utah? If you’re a first time home buyer, you probably have a lot of questions, and maybe they all have to do with financing. We’ll walk you through the mortgage application process and help you decide on the best mortgage lender for your new home. 

6 Best Mortgage Lenders in Utah for First Time Home Buyers

We’ve broken the top 6 lenders into quick categories to help you make your selection.

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers in Utah. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes in Utah
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. Utah residents can also refinance into any of these loans. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

Quicken Loans® is one of the top lenders in Utah (and the rest of the country), thanks to its speedy and convenient online application process, intuitive interface and 24/7 customer service. Quicken Loans® lets you move as quickly as you’d like through the mortgage process and walks you through your approved mortgage options.

Loan types offered: Conventional, FHA, USDA and VA

Credit score requirement: 620

3. Best for Government Loans: Guild Mortgage

Guild Mortgage is a great option if you know you want a government-backed loan and are considering a Utah state mortgage or assistance program. Guild Mortgage works with state programs and can help you afford a mortgage with alternative down payment and credit consideration.

Loan types offered: Conventional, FHA, USDA and VA

Credit score requirement: 620 (alternative credit considered)

4. Best for Face-to-Face Applications: CitiBank Mortgage

Do you prefer to talk to a professional about your mortgage options or want help navigating the mortgage application process? CitiBank is a top conventional lender to turn to. CitiBank offers online or in-person applications and also provides discounts for existing bank members.

Loan types offered: Conventional, FHA and VA

Credit score requirement: 620

5. Best in Customer Service: Flagstar

This top lender in Utah is known for its customer service and large selection of loan products, particularly for first time buyers. Flagstar offers a fully online application and makes it easy for you to see your mortgage rates online so you can easily compare products and lenders. Flagstar is also a top FHA loan provider in Utah.

Loan types offered: Conventional, FHA, USDA and VA

Credit score requirement: 620

6. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

The Housing Market in Utah: An Overview

Before you look for a mortgage lender, you’ll want to examine your local real estate market.

Here’s a quick look at the market in Utah:

Total households: 701,281

Median list price: $334,900

3 most expensive cities in Utah to buy a house:

• Park Lake: $1,558,245
• Alpine: $660,973
• Heber: $451,564

3 most affordable cities in Utah to buy a house:

• Logan: $204,734
• Provo: $301,344
• Murray: $323,199

Investigate median home values near you to help prepare for what you might pay on your new home.

Preparing for a Mortgage

There are a few key steps to preparing for your mortgage. We’ll walk you through the basics and lend some insights along the way.

First Time Home Buyer Mortgage Process in Utah

Before you start your mortgage application, you’ll want to look at your financial situation. It’s important to know where your finances stand when reviewing lender requirements. 

You should know:

• How much down payment you can afford. Different types of home loans and mortgage lenders have down payment requirements you’ll need to meet. Knowing how much you can afford to put down on your home can help you figure out which loans you’re eligible for and how low your rate is likely to be.
• Your credit score. Your credit score is used by mortgage lenders to determine whether you’re a creditworthy buyer. Your score will also help determine your loan’s interest rate. Typically, the lower your rate, the lower your credit score. Keep in mind that all lenders have different minimum requirements for credit scores.

Now that you’ve analyzed your finances, you can start compiling the documents you’ll need for your mortgage application. Have this paperwork on hand to help you speed up the application process:

• Your Social Security number
• Your tax information from the past 2 years
• Your pay stubs from the past 2 months
• Your account totals (checking, savings, retirement and other investment accounts)

You may need to supply additional information, depending on your mortgage lender’s requirements. 

Next, we’ll show you some minimum credit score requirements from top lenders in Utah.

Mortgage Options

All first time home buyers should know the different types of mortgages available. We’ll help you understand the differences by highlighting the requirements and benefits of each mortgage type below.

Conventional Loan

Conventional loans are financed by banks or credit unions. These loans typically have higher interest rates because they aren’t secured by the government. Conventional loans often have low down payment options and tend to be easier to qualify for, thanks to their flexible requirements.

FHA Loan

FHA loans are financed by the Federal Housing Administration for first time home buyers. These loans typically have below-market interest rates, low down payment options (3.5% minimum) and low credit score requirements (as low as 580). You can apply for an FHA loan through most conventional lenders.

USDA Loan

USDA loans are financed by the U.S. Department of Agriculture for homes that are located in rural areas in Utah. These loans typically have below-market interest rates, no down payment requirements and low credit score requirements (as low as 640). You can apply for a USDA loan through most conventional lenders.

VA Loan

VA loans are financed through the U.S. Department of Veterans Affairs for active and former military members and their families. These loans typically have below-market interest rates, no down payment requirements and no credit score requirements (unless required by a lender). You can apply for a VA loan through most conventional lenders, as well as VA-only lenders.

Jumbo Loan

Jumbo loans are either conventional or FHA loans and are used to finance homes valued over $484,350 (the limit may be higher, depending on where you’re located). These loans typically have higher down payment expectations and credit score requirements. Many lenders require a minimum down payment of 20% on jumbo loans, but some online lenders, like Rocket Mortgage®, only require 10% down.

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$0 Down VA Loans for Veterans & U.S. Military

Find out if you’re eligible today! Start the preapproval process online with Veterans United.

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First Time Home Buyer Programs in Utah

The Utah Housing Corporation (UHC) has several programs that can help you afford your first home. If you’re a low-income buyer, here are some programs and grants you should look into:

• UHC Down Payment Assistance: This second mortgage program allows you to take out an additional home loan to help with upfront closing costs or your down payment. To qualify, you must first qualify for a UHC first mortgage.
• UHC FirstHome: This mortgage program allows you to receive a low rate mortgage on your first home if you have a minimum credit score of 660 or higher. You’ll also need to meet UHC income and property value limits.
• UHC Home Again: This mortgage program can be used for first time home buyers in Utah who do not meet the FirstHome requirements. This low rate mortgage program has no property value limit, but it does have income limits.

Current Mortgage Rates in Utah

Your interest rate can save you thousands of dollars in interest. Your mortgage rate is set by your lender based on a few key factors, including your credit score, down payment amount, mortgage type, home location and your mortgage term.

Mortgage term refers to the length of your home loan. There are 2 main types of terms: fixed and adjustable. Fixed mortgages let you pay a set amount every month for the duration of your loan. With adjustable-rate mortgages (ARMs), you pay a set amount for your introductory period, after which your mortgage rate and monthly payment will fluctuate based on the market.

Mortgage rates in Utah can vary from city to city, so we’ve compiled median rate data based on 3 of the most common loan terms to help you better prepare for your mortgage rate.

Closing a Mortgage

After you’ve been approved for a mortgage and selected your mortgage term, you’ll move through the closing process until you’re ready to close on your new home. During the closing process, you’ll schedule your home inspection, negotiate closing costs (which could include repair fees) and take a final walkthrough of your home.

Next, you’ll finalize all loan paperwork, pay any down payment or closing cost fees and lastly, receive the keys to your new home.

Depending on your lender, this process can take between 30 – 45 days. Using an online lender like Quicken Loans® can help you speed up the timeframe, thanks to faster approvals and verifications.

Here are typical closing day expectations from top lenders in Utah.

Get Ready to Buy Your First Home in Utah

Buying your first home is a huge life milestone. Don’t rush into a decision about financing until you’re ready to move forward. Take some time to figure out which incentives are most important to you, then look for a lender that can help you accomplish your financial goals.

Frequently Asked Questions

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