Loan Programs
There isn’t a best loan. There’s a best loan for you.
Two people can walk in with the same credit score and the same price range and belong in completely different programs. What separates them is usually the down payment, the plan for the house, and how long they’ll keep it. Here’s an honest look at what each program does well — and where it doesn’t fit.
Fannie Mae & Freddie Mac
Conventional
The most common loan in the country, and the one most buyers with steady credit end up in. Down payments start at 3% for first-time buyers and 5% if you’ve owned before. Put less than 20% down and you’ll carry mortgage insurance — but unlike FHA, it comes off once you’ve built enough equity.
Where it shines
- Stronger credit, where pricing rewards you
- You want mortgage insurance you can eventually remove
- Larger down payments — the advantage grows with every percent down
- Second homes and investment property
Where it struggles
- Credit in the lower ranges, where FHA often prices better
- Higher debt-to-income, where FHA tends to be more flexible
- Recent credit events still inside the waiting period
Federal Housing Administration
FHA
Government-insured, and the most forgiving program for credit and debt. Down payments start at 3.5%. The tradeoff is mortgage insurance: FHA charges it upfront and monthly, and on most loans it stays for the life of the loan rather than dropping off at 20% equity. For a lot of buyers that’s a fair trade to get into a home years earlier.
Where it shines
- Lower credit, or credit that hasn’t fully recovered
- Higher debt-to-income than conventional will allow
- A past bankruptcy or foreclosure with a shorter waiting period
- Buyers using down payment assistance
Where it struggles
- Strong credit with a higher down payment — conventional usually wins
- Anyone who wants mortgage insurance gone in a few years
- Second homes and investment property, which aren’t eligible
- Competitive offers where sellers favor conventional financing
Down Payment Assistance
A down payment gift you never pay back.
Through one of our lenders we offer a grant of up to 3.5% of the purchase price toward the down payment on an FHA purchase. It is a true gift. It isn’t a second mortgage, there are no monthly payments on it, and there is nothing to repay when you sell or refinance. For most buyers, the down payment is the wall — and this removes it.
How it works
- Up to 3.5% of the purchase priceEnough to cover the full FHA minimum down payment on most purchases. A smaller option is also available.
- Nothing to repayNot a second lien, no monthly payment, no payoff at sale, and no resale restrictions on your home.
- You can still bring your own moneyUse the grant alone, or add your own funds if you’d rather put more down.
- Seller help stacks on topYou can still negotiate seller-paid closing costs alongside the grant.
Who can use it
- Several ways to qualifyOnly one borrower on the loan needs to meet one qualifying path — first-time buyers and public servants are two of them.
- Public servants, broadly definedMilitary, police, fire, EMTs and paramedics, teachers, medical staff, and government employees — current, retired, or serving as a volunteer.
- Where it appliesFHA purchase loans on a primary residence. Single-family, FHA-approved condos, PUDs, and manufactured homes all qualify.
- A homebuyer education courseOne borrower completes an approved course. Plan on a few hours. There’s a fee, and the lender credits it back to you at closing.
The interest rate on this program is higher than a standard FHA loan where you bring your own down payment. That’s the tradeoff, and it’s worth doing the math on rather than assuming either way.
Whether it’s the right move depends on how much cash you have, how long you plan to stay, and what keeping your savings is worth to you. Sometimes it’s clearly better. Sometimes it isn’t. I’ll show you both versions side by side and let you decide.
Department of Veterans Affairs
VA
If you’re eligible, this is usually the strongest loan available to anyone. No down payment required, no monthly mortgage insurance at all, and rates that typically price better than conventional. There’s a one-time funding fee, which can be financed into the loan — and veterans receiving VA disability compensation are generally exempt from it entirely.
Where it shines
- Buying with little or nothing down
- Keeping savings intact instead of draining them at closing
- No monthly mortgage insurance, at any down payment
- You can use the benefit more than once
Things to know
- Primary residences only — not second homes or rentals
- The property has to meet VA condition standards
- A subsequent use with nothing down carries a higher funding fee
- Some sellers misunderstand VA offers; a good agent handles that
U.S. Department of Agriculture
USDA Rural Development
The most overlooked program in Utah. No down payment required, and “rural” covers more of this state than people assume — eligible areas sit just outside the main population centers, not way out in the middle of nowhere. There are household income limits and the property has to fall inside an eligible area, and both are easy to check. Send me an address and I’ll tell you in about a minute.
Where it shines
- Buying with no down payment outside the metro core
- Moderate household income within program limits
- Its monthly fee is generally lower than FHA’s
Where it struggles
- Household income above the limit for your county
- Properties inside the areas that don’t qualify
- Primary residences only
Alternative Documentation
Non-QM
For borrowers whose income is real but doesn’t fit a W-2 box. Self-employed owners whose tax returns show every legitimate deduction. Investors buying property that pays for itself. Retirees with substantial assets and modest reported income. These loans price higher than standard loans, and they close purchases that standard loans turn down.
What we use most
- Bank statement loans — income from deposits instead of tax returns
- DSCR — investment property qualified on its own rent, not your income
- Asset depletion — qualifying from savings and investments
Worth knowing
- Rates and down payments run higher than standard loans
- Always compare against conventional before assuming you need it
- Guidelines vary a lot between lenders — we review them across our network to find the fit
Above Conforming Limits
Jumbo
When the loan amount exceeds what Fannie Mae and Freddie Mac will buy, it becomes a jumbo — and pricing stops being standardized. Every lender writes their own guidelines, and the spread between the best and worst offer on the same file can be substantial. We compare your scenario across our lender network so you don’t have to.
Where it shines
- Loan amounts above the conforming limit for your county
- Strong credit and reserves, where guidelines reward you
- Pairs well with alternative documentation for self-employed buyers
Worth knowing
- Reserve requirements are real — expect to document savings
- Appraisal standards are stricter and can take longer
- Structures vary by lender, and we’ll compare the options side by side
Why the answer isn’t obvious
The same credit score, three different answers.
Every one of these buyers has a 700 credit score. That single number tells you almost nothing on its own — what changes the answer is everything around it.
3.5% down, tight on cash
With a minimum down payment, FHA’s mortgage insurance often costs less each month than conventional’s does at that equity level.
Our suggestionFHA, or FHA with the grant.
40% down from a home sale
At that equity there’s no mortgage insurance on a conventional loan at all, and FHA would add an upfront fee for nothing in return.
Our suggestionConventional.
Self-employed, nothing down, a veteran
Eligibility changes the whole conversation. No down payment, no monthly mortgage insurance, and pricing that usually beats the alternatives.
Our suggestionVA, all the way.
Lowering the rate
Buydowns, and when they’re worth it.
Permanent buydowns
You pay money at closing to lower your rate for the life of the loan. Whether it pays off comes down to one question: how long will you keep this mortgage? Stay long enough and it wins easily. Sell or refinance before then and you’ve spent money you never got back. We’ll find the break-even point for your actual numbers.
Temporary buydowns
Your rate starts lower and steps up to the full rate after the first year or two. These are funded by the seller, builder, or through concessions — you can’t pay for one yourself. They’re less useful if you’re counting on refinancing later, since nobody can promise where rates will be.
This is where your agent matters
A temporary buydown depends on seller-paid concessions, which means it depends on someone negotiating them into the contract. A good agent knows how to ask, and when asking will work. If you don’t have one yet, tell me — I work with agents across the Wasatch Front every week and I’m glad to introduce you to a trusted agent.
Sometimes the answer is neither
Concessions can go toward a buydown, toward your closing costs, or toward a lower purchase price — and the best use isn’t always the one that sounds most impressive. Before you commit seller money to a buydown, it’s worth seeing what the other options do to your payment.
Already own a home
Refinancing.
A refinance is only worth doing if it leaves you better off, and that’s not always obvious from the rate alone. I’ll tell you when the numbers don’t work.
What we do
- Rate and term — lower the rate, change the length, or drop mortgage insurance
- Cash-out — use equity for renovations, debt, or an investment
- FHA Streamline and VA IRRRL — a simplified path to reduce your rate compared to a normal rate and term refinance
What to weigh first
- How long until the savings cover the cost of doing it
- Whether restarting the clock costs more in total interest than it saves
- What you’d be giving up if your current rate is already low
Not sure which of these you belong in?
That’s the normal place to start, and it’s a short conversation. Tell me your situation and I’ll tell you which programs are actually in play for you — including the ones that aren’t. No application required.
Program descriptions on this page are general and for information only. They are not a commitment to lend, an offer to extend credit, or a complete statement of any program’s guidelines. Eligibility, terms, and availability vary by lender and are subject to change without notice.
Down payment assistance is offered through a participating lender and is subject to that lender’s eligibility requirements, borrower qualification, and program availability. Homebuyer education is required. Grant amounts and qualifying categories are set by the program and may change. Not all applicants will qualify.
All loans are subject to a complete application, verification of income, assets, and credit, satisfactory appraisal and title, and lender approval. Equal Housing Opportunity.