Utah Mortgage Qualification Estimator

Yes, you can keep the marital home if you qualify to refinance the mortgage in your name alone under Utah's equitable distribution rules in Utah Code § 30-3-5. You must demonstrate a debt-to-income ratio below 43%, have sufficient income (including any alimony or child support you receive), and complete a quitclaim deed transfer with your county recorder. Most Utah divorce decrees require refinancing within 90-180 days of finalization.

To qualify on one income in Utah, lenders require your total debt-to-income ratio to stay below 43% and housing costs below 28% of gross monthly income. With Utah's median home price at $559,600, a single borrower typically needs $140,000+ annual income for a conventional loan. Alimony and child support received can count as qualifying income, and the Utah Housing Corporation's FirstHome program offers rates as low as 6.5% for qualifying buyers with credit scores of 660 or higher.

Yes, Utah lenders count alimony as qualifying income if you've received documented payments for at least 6 consecutive months and your divorce decree guarantees payments for 3+ years beyond closing. You'll need to provide your divorce decree, court order, and bank statements proving consistent deposits. Child support follows the same 6-month documentation and 3-year continuity requirements under standard Fannie Mae and FHA guidelines.

Yes, most Utah divorce decrees require refinancing within 90-180 days to remove the departing spouse from both the mortgage and title under Utah Code Title 30, Chapter 3. A quitclaim deed alone removes the ex-spouse from the title but not the mortgage obligation—they remain legally responsible until refinancing occurs. Some lenders offer mortgage assumption or release options, though these are less common than full refinancing.

Utah's median home sale price reached $559,600 in February 2026, making it the nation's 9th most expensive housing market. Single-family homes average closer to $550,000 in sought-after areas. The market has seen 2.5% year-over-year appreciation with forecasts predicting 3-4% annual growth through 2027. Only 8% of non-homeowners can currently afford a median-priced Utah home.

Divorce itself doesn't directly impact your credit score in Utah, but the financial changes that accompany divorce often do. Missed mortgage payments, closed joint accounts, and increased individual debt utilization can each lower scores by 50-100 points. Utah courts may assign mortgage responsibility to one spouse, but creditors will still pursue both parties if payments are missed on joint accounts until refinancing is complete.

The Utah Housing Corporation's FirstHome program offers down payment assistance up to $27,500 (6% of your loan) for first-time buyers with 660+ credit scores. Divorced individuals qualify as first-time buyers if they haven't owned property for 3 years—even if they previously owned with their ex-spouse. The state's $50 million First-Time Homebuyer Assistance Program provides up to $20,000 interest-free for rate buydowns on new construction homes up to $450,000.

Yes, divorce settlement funds can serve as a down payment in Utah, and lenders accept cash from property division, retirement account transfers, or buyout payments. You must provide a copy of your divorce decree showing the settlement terms and document that funds have been in your account for at least 60 days (or provide a clear paper trail from the settlement source). Large deposits within 60 days require additional documentation under standard underwriting guidelines.