St. George is one of Utah's fastest-growing cities, attracting buyers from across the country. FHA's low down payment requirements make it a common consideration for those entering this appreciating Sun Belt market for the first time.
HUD sets FHA loan limits on a county-by-county basis each year, calibrating them to local median home prices. For 2025, Washington County's FHA limit for a single-family home is $524,225 — the national floor for areas that do not meet the threshold for a high-cost-area designation. This is a meaningful distinction from Salt Lake County and Utah County, both of which received higher-cost-area adjustments and carry a 2025 limit of $724,500.
What does this mean for St. George buyers? A buyer using FHA financing can purchase a home up to $524,225 with as little as 3.5% down. A buyer seeking a home priced above that threshold would need to either put more money down to bring the loan amount within the FHA limit, or explore alternative financing — conventional, VA (if eligible), or jumbo lending. Washington County's home prices have appreciated substantially, and the gap between the FHA floor and current market prices in some neighborhoods is worth understanding before assuming FHA is the right tool for every purchase.
It is important to note that FHA limits are updated annually and can change. The figures cited here reflect 2025 program year data. Buyers should always verify current limits directly at hud.gov or through a licensed FHA-approved lender, as limits may have been adjusted since publication of this guide.
FHA mortgage insurance premium rules are set federally and apply uniformly statewide — St. George buyers are subject to the same MIP structure as buyers in Salt Lake City or Logan. There are two components: an upfront MIP of 1.75% of the loan amount, which can be rolled into the loan balance at closing, and an annual MIP paid monthly as part of the mortgage payment.
The annual MIP rate depends on the loan term, loan-to-value ratio, and loan size. For most 30-year FHA loans with less than 10% down, the annual MIP rate is approximately 0.55% per year. For borrowers putting down less than 10%, MIP continues for the life of the loan — it does not automatically cancel when you reach 20% equity the way private mortgage insurance does on conventional loans. For borrowers putting 10% or more down, MIP cancels after 11 years. This lifetime MIP feature is one reason some FHA borrowers eventually refinance into a conventional loan once they have built sufficient equity. A licensed lender can help model whether refinancing out of MIP makes financial sense at any given point.
On a $450,000 FHA loan in St. George with 3.5% down, for example, the upfront MIP would be approximately $7,875 (rolled into the loan), and the annual MIP would be roughly $2,475 per year, or about $206 per month added to the payment. These figures are illustrative only — actual costs depend on the final loan amount, term, and FHA rate in effect at the time of the loan. Always confirm MIP costs with a licensed lender.
Some parts of Washington County — particularly outlying and less-developed areas beyond the urban core of St. George, Washington City, Hurricane, and Santa Clara — may be USDA-eligible for the Rural Development Guaranteed Loan Program. Urban St. George proper is generally not USDA-eligible due to population density, but buyers considering homes in smaller surrounding communities should check whether their specific property address qualifies before defaulting to FHA.
The USDA program requires zero down payment and charges a lower ongoing fee structure than FHA: an upfront guarantee fee of 1% (versus FHA's 1.75% upfront MIP) and an annual fee of 0.35% (versus FHA's roughly 0.55% annual MIP for most borrowers). For buyers who are income-eligible and whose property qualifies, USDA financing is frequently the more cost-effective zero-down option. FHA's advantage is broader geographic coverage — it applies in both urban and rural areas and has no income limit, unlike USDA's 115% AMI cap.
Buyers comparing FHA and USDA in Washington County should verify property address eligibility at the USDA eligibility portal and discuss income qualification with a lender approved for both programs. See our Utah USDA Loans guide for a detailed overview of how the USDA program works.
FHA loans are made by FHA-approved private lenders and insured by the Federal Housing Administration. The process below describes the general steps for an FHA purchase in the St. George and Washington County market.
Review your credit scores and history before approaching lenders. FHA's minimum thresholds allow lower scores than conventional loans, but individual lenders may apply higher minimums. Understanding your scores in advance helps you target lenders whose overlays fit your profile. Also confirm the home you are considering will serve as your primary residence — a prerequisite for FHA financing.
Work with an FHA-approved lender to obtain a pre-approval. In St. George's active market, having a pre-approval letter demonstrates to sellers that your financing is solid and ready. Compare at least two or three FHA-approved lenders — rates, origination fees, and lender overlays differ, and the differences can have a meaningful impact on your long-term cost of borrowing.
FHA requires a property appraisal by an FHA-approved appraiser, who assesses both value and whether the property meets FHA Minimum Property Standards for safety, soundness, and security. Properties with significant deferred maintenance, roof issues, or health and safety hazards may require repairs before the loan can close. The appraiser also confirms the purchase price is supported by comparable sales in the St. George market.
After the appraisal, the loan moves through underwriting. FHA loans close similarly to conventional loans. At closing, the upfront MIP (1.75% of the loan) is collected — typically financed into the loan balance. Annual MIP begins accruing as part of the monthly payment. Keep in mind the MIP duration rules when planning your long-term financing strategy.
FHA financing is a strong tool for many buyers in St. George, but it carries trade-offs worth understanding clearly before committing to a program.
UtahRefi is an educational publisher, not a lender. Participating licensed lenders can review your financial profile and discuss FHA — and other — programs that may be available for Washington County home purchases. Loan terms, APR, fees, and eligibility are determined solely by lenders based on your individual circumstances.
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The complete statewide overview of FHA financing in Utah — eligibility, MIP, loan limits, and how the program works.
Read the Guide → Compare ProgramsSome Washington County addresses may qualify for USDA zero-down financing. Learn whether USDA is an option alongside or instead of FHA.
Explore USDA → FHA ProgramsAlready have an FHA loan in St. George? Learn about FHA Streamline and other refinance options available to existing FHA borrowers.
Explore FHA Refinance →