NoMI, No Mortgage Insurance. Ever.
Most first-time buyer loans come with mortgage insurance that costs $150–$250/month on a typical Utah home. The UHC NoMI Loan eliminates it entirely, while still offering full down payment assistance. You get the help you need without the monthly penalty.
What Is the NoMI Loan?
NoMI is one of four UHC first mortgage programs. NoMI stands for No Mortgage Insurance. Standard FHA loans charge MIP (mortgage insurance premium) for the life of the loan on most configurations. Conventional loans require PMI until you reach 20% equity. The NoMI Loan eliminates both, from day one, for the life of the loan. The tradeoff: the interest rate is slightly higher than UHC's FirstHome rate. But for many buyers, no mortgage insurance still wins on total monthly cost.
Key Program Facts
- ✓No mortgage insurance, no MIP, no PMI, ever
- ✓Traditional DPA: up to 6% of first mortgage, capped at $27,500 (1% above first-mortgage rate, 30-year amortizing)
- ✓Or Deferred DPA: up to 3.5% with no monthly payment, capped at $27,500 (3.5% deferred simple interest)
- ✓Loan type: 30-year fixed rate
- ✓Minimum credit score: 700 (highest of any UHC program)
- ✓Slight rate premium vs. FirstHome
- ✓Income limit: $162,500 qualifying income (HFA Advantage)
- ✓No purchase price limit (loan amount cannot exceed Freddie Mac conforming limit; cannot exceed FHA loan amount limit)
- ✓Primary residence only, owner-occupied
How NoMI Eliminates Insurance
Standard mortgage insurance exists to protect the lender if you default. On FHA loans, the borrower pays MIP to cover this risk. On conventional loans, PMI serves the same purpose.
With NoMI, Utah Housing Corporation absorbs and structures the risk differently through their bond program, eliminating the need to pass that cost to you as a monthly charge. The slightly higher rate reflects this arrangement, but for most buyers it is still cheaper than paying PMI or MIP separately.
NoMI vs. FHA: The Math
On a $420,000 home with 3.5% down, what the numbers actually look like
FHA Loan
FHA MIP on most loans is permanent for the life of the loan, it does not drop off at 20% equity on loans originated after 2013 with less than 10% down.
NoMI Loan
Rate is slightly higher than FirstHome, but for most buyers the eliminated insurance premium more than compensates. Break-even typically occurs at 3–5 years.
The Break-Even Window
Break-even between NoMI and FHA typically occurs at 3–5 years, depending on the rate difference at the time of your loan. If you plan to own the home 5+ years, NoMI usually wins on total cost. If you expect to sell or refinance in 2–3 years, the comparison is closer. Ask your lender to model both scenarios with current rates.
NoMI + DPA: How the Assistance Works
The 6% DPA is a second mortgage, here is how it works in practice
Deferred DPA (0% Interest)
The DPA is structured as a second mortgage at 0% interest, deferred until you sell, refinance, or pay off the first mortgage. No monthly payment on the DPA.
- ✓ Lowest first mortgage rate
- ✓ No monthly DPA payment
- ✓ DPA repaid at sale or refinance
On a $420K home: 6% DPA = $25,200 toward your down payment at closing.
Forgivable DPA (7-Year Term)
A slightly higher first mortgage rate in exchange for full DPA forgiveness after 7 years if you remain in the home. Stay 7 years, the entire DPA balance is forgiven.
- ✓ DPA forgiven after 7 years
- ✓ No repayment if you stay long-term
- ✓ Pro-rated repayment if sold early
Best for buyers planning to stay in the home 7+ years.
When NoMI Beats Other Loan Types
A quick decision guide based on your situation
| Your Situation | Best Option |
|---|---|
| Credit 700+, want lowest monthly payment, staying long-term | NoMI Loan |
| Credit 620–659, need DPA, recovering from credit issues | Score Loan |
| VA-eligible (veteran or active military) | VA Loan (zero down, no PMI, no rate premium) |
| First-time buyer, 660+ credit, want lowest rate | FirstHome Loan |
| Repeat buyer needing DPA | UHC FHA/VA Mortgage (620+ FICO), HomeAgain currently suspended |
NoMI is one of four UHC programs. The right program for you depends on your credit score, income, timeline, and how long you plan to stay in the home.
2026 NoMI Eligibility Limits
NoMI runs on UHC's Freddie Mac HFA Advantage backbone, uniform income limit, no purchase price limit
Limits are updated annually by Utah Housing Corporation. Source: UHC Income and Purchase Price Limits page. Always verify current figures with a UHC-approved lender before making offers.
Stack NoMI With County Grants
The NoMI Loan can be combined with county DPA programs the same way other UHC programs can. This is where the total assistance can be substantial.
Not all county programs allow stacking with UHC. Ask your lender which combinations are currently permitted in your county. Numbers above are illustrative on a $420,000 purchase price.
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Stop Paying for Insurance on a Home You Already Own
Book a free consultation and we'll run the NoMI vs. FHA numbers for your specific situation. You'll see the actual monthly payment difference, the break-even point, and how much total assistance you could stack with county grants, all in about 15 minutes.