What is a conventional loan?

A conventional loan is a mortgage that isn't backed by a government agency (FHA, VA, USDA). Most conventional loans conform to Fannie Mae or Freddie Mac guidelines and are the most common mortgage type in Utah.

What credit score do I need for a conventional loan?

Most Utah lenders look for at least a 620 score; the best pricing kicks in at 740 and above. Below 700, FHA often beats conventional on cost.

How much down payment do I need?

As little as 3% for first-time buyers (Fannie Mae HomeReady, Freddie Mac Home Possible) and 5% for repeat buyers. 20% down avoids private mortgage insurance entirely.

What is PMI and when does it go away?

Private Mortgage Insurance is required when you put less than 20% down on a conventional loan. It automatically cancels at 78% LTV and can be requested at 80% LTV — unlike FHA MIP, which is often permanent.

What is the conforming loan limit in Utah?

The baseline 2026 conforming limit applies in most Utah counties, with higher limits in Summit and Wasatch Counties. Loans above the limit are jumbo loans.

When is a conventional loan better than FHA?

With a 700+ credit score and at least 5% down, conventional typically wins on total cost because PMI is lower than FHA MIP and drops off at 80% LTV.

What is a conventional loan?

A conventional loan is a mortgage that isn't backed by a government agency (FHA, VA, USDA). Most conventional loans conform to Fannie Mae or Freddie Mac guidelines and are the most common mortgage type in Utah.

What credit score do I need for a conventional loan?

Most Utah lenders look for at least a 620 score; the best pricing kicks in at 740 and above. Below 700, FHA often beats conventional on cost.

How much down payment do I need?

As little as 3% for first-time buyers (Fannie Mae HomeReady, Freddie Mac Home Possible) and 5% for repeat buyers. 20% down avoids private mortgage insurance entirely.

What is PMI and when does it go away?

Private Mortgage Insurance is required when you put less than 20% down on a conventional loan. It automatically cancels at 78% LTV and can be requested at 80% LTV — unlike FHA MIP, which is often permanent.

What is the conforming loan limit in Utah?

The baseline 2026 conforming limit applies in most Utah counties, with higher limits in Summit and Wasatch Counties. Loans above the limit are jumbo loans.

When is a conventional loan better than FHA?

With a 700+ credit score and at least 5% down, conventional typically wins on total cost because PMI is lower than FHA MIP and drops off at 80% LTV.

Utah Conventional Loans | Conforming Mortgage Guide

By Tres Miller · Mortgage Banker · NMLS #217768

Reviewed June 22, 2026 · 31+ years lending in Utah

Quick Answer

A conventional loan is a non-government-backed mortgage that conforms to Fannie Mae or Freddie Mac guidelines. For Utah buyers with at least a 700 credit score and 5% down, it's usually the lowest-total-cost option.

Overview

Conventional loans are the most common mortgage type in Utah. They're not insured by FHA, VA, or USDA — instead, the loan must meet Fannie Mae or Freddie Mac underwriting standards so the lender can sell it on the secondary market.

Strong credit profiles get rewarded: a 740+ score and 20% down delivers the best pricing in the market. Lower scores or smaller down payments push borrowers toward FHA for cost reasons — but the moment you can clear 700/5%, conventional usually wins.

Who it's for

Buyers with credit scores at 700+
Buyers with at least 5% down (3% for first-time buyer HomeReady / Home Possible)
Repeat buyers and move-up buyers across the Wasatch Front
Buyers purchasing second homes or investment properties (FHA/VA don't allow this)
Refinance candidates who want to drop FHA MIP

Key benefits

Lower total cost than FHA at 700+ credit / 5%+ down
PMI drops off automatically at 78% LTV
No upfront mortgage insurance premium
Available for primary, second homes, and investment properties
Down payment as low as 3% on Fannie Mae HomeReady / Freddie Mac Home Possible
Flexible property types — single family, condo, manufactured, multi-unit

Common requirements

Typical minimum credit score of 620; 700+ for best pricing
Down payment of 3%–20% depending on program
Debt-to-income ratio generally under 45% (with strong compensating factors)
Two-year employment and income history
PMI required below 20% down (cancels at 78% LTV)
Loan amount within the conforming limit (above = jumbo)

Utah-specific considerations

Conforming loan limits in Utah are higher in Summit County and Wasatch County than in the rest of the state — Park City, Heber, and Midway buyers can still qualify conventional on larger loans.
Utah's strong appreciation has helped many homeowners reach 78% LTV early — refinancing or requesting PMI cancellation often pays off within 2–3 years of purchase.
Second-home and investment-property purchases in St. George, Park City, and Bear Lake are almost always conventional — FHA and VA don't allow non-primary residences.
Utah Housing Corporation has conventional products with down-payment assistance for moderate-income first-time buyers.