If you’re a veteran or active-duty service member looking to buy a
home in Utah, the VA loan program is one of the most significant
benefits available to you. It was designed specifically to make
homeownership more accessible for those who’ve served — and it delivers
on that promise in ways no other loan program can match.
Understanding how VA loans work, what they cost, and whether you
qualify is the first step toward using this benefit effectively. This
guide covers everything Utah veterans need to know.
Note: This guide is for educational purposes. Rates, eligibility
requirements, and program details may vary and are subject to change.
Contact a licensed VA-approved loan officer for guidance specific to
your situation.
A VA loan is a mortgage backed by the U.S. Department of Veterans
Affairs. The VA doesn’t lend money directly — instead, it guarantees a
portion of the loan, which reduces risk for approved lenders. That
guarantee allows lenders to offer more favorable terms to eligible
borrowers.
The program was established through the Servicemen’s Readjustment Act
of 1944 (the GI Bill) and has helped millions of veterans and service
members become homeowners in the decades since.
The VA loan program offers advantages that no other loan type
provides in combination.
Eligible VA borrowers can finance 100% of a home’s purchase price —
no down payment needed. This is the benefit that makes the biggest
practical difference for most veterans.
The conventional alternative requires 3-20% down depending on the
loan type and program. On a $400,000 home in Utah, that’s $12,000 to
$80,000 that VA borrowers don’t need to come up with before they can
buy.
VA loan limits apply for veterans with remaining entitlement. For
most qualifying veterans with full entitlement, there’s no VA-set loan
limit. Source: va.gov
On conventional loans with less than 20% down, borrowers pay PMI —
typically 0.5-1.5% of the loan amount per year. On a $400,000 loan,
that’s $2,000-$6,000 annually, added to your monthly payment.
VA loans don’t require PMI. The VA guarantee serves the same function
from the lender’s perspective, so you don’t pay for it separately.
The combination of no down payment and no PMI is significant: VA
borrowers often have lower monthly payments than they would with an FHA
loan at the same purchase price, despite financing more of the home.
Because VA loans are backed by the government, lenders take on less
risk — and that often translates to lower interest rates compared to
conventional loans for borrowers with similar credit profiles.
Interest rates vary based on credit score, loan amount, market
conditions, and lender. No specific rate can be guaranteed. Contact a
loan officer for a personalized rate quote.
VA loans tend to be more accessible to borrowers with credit scores
in the 620-680 range than conventional loans. While lenders set their
own minimum credit requirements (and Integrity First Lending can explain
what we require), the VA loan program is generally more forgiving for
borrowers who’ve experienced credit challenges.
The VA limits what lenders and sellers can charge VA borrowers in
closing costs. Certain fees are not allowed to be charged to VA buyers
(“non-allowable fees”). This protects VA borrowers from some of the
costs that other buyers absorb.
Additionally, sellers can pay all of a VA buyer’s closing costs — and
in negotiations, this is a commonly used strategy to reduce
out-of-pocket expenses at closing.
VA loans are assumable — meaning a future buyer of your home can take
over your VA loan (with VA approval) rather than obtaining a new
mortgage. In a rising-rate environment, an assumable mortgage at a lower
rate can be a meaningful selling advantage.
Eligibility is based on your service history. General eligibility
requirements include:
Active duty service members: - 90 continuous days of
active duty service
Veterans: - 90 days during wartime (WWII, Korean
War, Vietnam, Gulf War era) - 181 days during peacetime - Note: Specific
date ranges define wartime vs. peacetime periods under VA guidelines
National Guard and Reserve members: - 6 years of
service in the Selected Reserve or National Guard - OR 90 days of
active-duty service (under certain conditions, including activation
under Title 10 or Title 32 orders) - Rules for Guard/Reserve members are
nuanced — a loan officer can help you verify
Surviving spouses: - Unremarried surviving spouses
of veterans who died in service or from a service-connected disability -
Spouses of veterans missing in action or prisoners of war under certain
conditions
Important: Meeting the service requirement doesn’t
automatically mean you’re eligible. You also need to meet lender credit
and income requirements, and the property must be a primary residence
that meets VA minimum property requirements.
Current eligibility requirements, including service periods and
documentation needed:
va.gov/housing-assistance/home-loans/eligibility/
VA loans don’t require PMI, but they do have a VA funding fee — a
one-time charge that helps sustain the program.
Funding fee amounts (current as of publishing — verify
current rates at va.gov before advising clients):
The funding fee percentage depends on: - Whether it’s your first VA
loan use or a subsequent use - Your down payment amount (fee decreases
with larger down payment) - Your military category (regular military
vs. Reserve/National Guard)
As a general example: - First-time use, 0% down: 2.15% (regular
military) - Subsequent use, 0% down: 3.3% (regular military) - Down
payment of 5%+: Lower rates apply - Down payment of 10%+: Further
reduced rates
Fee exemptions: Veterans receiving VA disability
compensation, active-duty service members who have received a Purple
Heart, and certain surviving spouses are exempt from the funding
fee.
The funding fee can be financed. Rather than paying
it out of pocket at closing, most borrowers roll the funding fee into
the loan amount.
VA funding fee tables and current rates: va.gov/funding-fee.
These amounts are set by Congress and subject to change. Always verify
current rates with a VA-approved lender.
The Certificate of Eligibility (COE) is the document that verifies
you meet VA loan service requirements. Lenders need this before
proceeding with a VA loan.
Three ways to get your COE:
What you’ll need (varies by military category): -
Veterans: DD Form 214 (Certificate of Release or Discharge from Active
Duty) - Active duty: Current statement of service - Guard/Reserve
members: Additional service documentation
Utah’s housing market presents both opportunities and considerations
for VA borrowers.
Loan limits: VA loans no longer have a set loan
limit for veterans with full entitlement (restored in 2020). This means
VA borrowers can purchase more expensive homes without a down payment,
provided they qualify based on income and credit. In Utah’s
higher-priced markets (Salt Lake County, Utah County), this is
meaningful.
Competitive markets: The Wasatch Front is
competitive. VA loans sometimes face misconceptions from listing agents
and sellers who believe VA loans are slower or more difficult to close.
Working with a lender experienced in VA transactions — and an agent who
knows how to present VA offers effectively — makes a real
difference.
Property requirements: VA loans require properties
to meet VA Minimum Property Requirements (MPRs) — conditions that ensure
the home is safe, structurally sound, and sanitary. VA appraisals are
not home inspections, but they do flag certain conditions. Understanding
MPRs before you put in an offer on a fixer-upper is important.
Utah VA loan opportunities: Veterans purchasing in
rural Utah counties may find homes well within VA loan parameters, with
lower purchase prices and less competition than the Wasatch Front.
Communities in Cache, Box Elder, Sanpete, and other rural counties can
be good fits for veterans using VA loans.
Here’s a general comparison for context (individual circumstances
will vary):
| Feature | VA | FHA | Conventional |
|---|---|---|---|
| Down payment | 0% (eligible) | 3.5% (580+ credit) | 3-20% |
| PMI / MIP | None | Required | Required <20% down |
| Upfront fee | VA funding fee | FHA upfront MIP | None (typically) |
| Credit flexibility | Good | Good | Stricter |
| Loan limits | No VA limit (full entitlement) | County limits apply | Conforming limits |
| Property requirements | VA MPRs | FHA guidelines | Standard appraisal |
This comparison is general and educational. Individual
circumstances significantly affect which loan type makes most sense.
Consult a loan officer for a personalized analysis.
The first step is a conversation with a VA-approved loan officer who
can review your eligibility, explain what you qualify for, and give you
a realistic picture of what homeownership looks like for you
specifically.
What to bring to that conversation: - Your DD Form
214 (veterans) or current service information (active duty) - Recent pay
stubs, W-2s, tax returns - Bank and asset statements - An idea of where
in Utah you want to buy and your target price range
From there, the process is straightforward: obtain your COE (your
loan officer can often pull this immediately), get pre-approved, find a
home, and close.
Utah has a strong community of veterans, and Integrity First Lending
has deep experience with VA loans across all of our licensed states. If
you’re eligible and considering homeownership in Utah, this is a benefit
worth understanding fully.
Talk to a VA Loan Specialist at Integrity First
Lending →
Equal Housing Lender. Integrity First Lending.
NMLS # 1006977
AZ License # 1004274
© 2018-2021 IntegrityLending. All Rights Reserved. Website Built by SEO Werkz