Every mortgage plan is different. And in a resort town like Park City, shopping and qualifying for a mortgage may require some local expertise. To help you choose the right mortgage plan, here’s our brief guide on everything you need to know about mortgages in Park City, Utah.

Why choose a local Park City lender?

As a renowned ski resort destination and vacation town, many properties in Park City are townhomes or condo developments. This results in a diverse mix of ownership situations, ranging from homeowners who can be full-time or seasonal residents to property investors who maintain long-term rentals or vacation rentals.

This ownership-to-rent ratio can be unfamiliar to many out-of-state lenders. You might run into problems when applying for mortgage plans like conforming loan programs, which have certain limits and restrictions per county. But with a local Park City lender, you can avoid these hoops altogether.

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Types of mortgage plans

Mortgage loans are classified in various ways. You can apply for government loans (guaranteed by the U.S. Government based on certain qualifications) or conventional loans (offered by private lenders).

Conventional loans

Mortgage loans that are not issued or backed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), or the Rural Housing Service (RHS) are considered conventional loans.

Most conventional loan requirements include:

  • A minimum credit score of 620, with a debt-to-income ratio of no more than 45% and a steady source of income.
  • A down payment of 5% to 20% of the total sales price in cash. If you can put down less than 20%, however, most lenders will require you to pay for private mortgage insurance (PMI) until you’ve reached 20% equity.
  • A property appraisal that confirms the home’s value, which should be at or above the purchase price.


Conforming loans

Conforming loans follow the conditions set by Fannie Mae and Freddie Mac, both of which have the power to influence credit and income requirements, eligibility, and maximum loan amounts.

According to the Bank of Utah, the conforming loan limits for 1-to-4-unit residential homes and condos in Park City (located in Summit County) are as follows:

  • One unit: $762,450
  • Two units: $976,100
  • Three units: $1,179,850
  • Four units: $1,466,250

FHA loans

An FHA loan is a mortgage program insured by the FHA, which is part of the U.S. Department of Housing and Urban Development. It’s often recommended to first-time homebuyers because of its lower down payment and credit requirements (minimum of 3.5% of sales price, with a credit score of 580 or higher). One condition, however, is that you must turn the property you’re purchasing into your primary residence for at least a year.

VA loans

VA loans are tailored for active servicemen, veterans, and their spouses. Government-backed and private lender-provided, you can benefit from low interest rates and lower closing costs if you’re eligible. VA loans also don’t require down payments nor private mortgage insurance. The best part of it all is that you can take out a VA home loan multiple times throughout your lifetime.

Do you need assistance in financing your dream home in Park City? Team Schlopy can help! Call us at (435) 640-5660 or send us an email at info@teamschlopy.com.