Which Utah Housing Loan is Right for You?

Woman consulting with agentEstablished in 1975 by the Utah Legislature, the Utah Housing Loan Program aims to provide housing for lower-income families who are unable to purchase a home due to lack of funds (i.e. for down payment and closing costs).

You can apply for Utah housing loans here in Ogden from lenders that can guide borrowers throughout the application process and achieve their dream home.

What are the loan types available under this program? And which one is right for you?

First Home Loan

This loan is for first-time homebuyers. You can borrow up to 6% of the previous mortgage loan for down payment and closing costs. To qualify, you must have a credit score of at least 660. Mortgage insurance is also required.

Each county, however, has income restrictions, although most would have a ceiling of $95,000 of annual income.

Home Again Loan

Home Again Loan is for repeat homebuyers. Like the First Home Loan, it offers 6% of the first mortgage loan amount for down payment and closing costs. The program, likewise, sets a credit score of at least 660, and it also requires mortgage insurance.

Score Loan

This loan program is for a homebuyer who has a lower credit score, i.e. below 620. It only offers a lower first mortgage loan amount (4%) for down payment and closing costs. Nevertheless, this loan type can give you a higher interest rate, which would lead to higher monthly payments.

NoMI (No Mortgage Insurance) Loan

NoMI loans are for those with good credit scores, i.e. at least 700. Requiring no mortgage insurance, it offers the highest interest rate of all loans under the Program. However, it only allows one to borrow 4% of the first mortgage loan for down payment and closing costs.

These are some of your choices. Make sure you choose the right one.