WASHINGTON, D.C. – August 22, 2013 – (RealEstateRama) — At a time when housing prices have begun to rebound and interest rates have increased from historic lows, Utah Housing Corporation has launched a new mortgage option to assist low to moderate income homebuyers by providing a product not available anywhere else. The Utah Housing No Mortgage Insurance (NoMI) Loan enables a homebuyer to achieve significantly lower monthly payments when compared to o Because there is no monthly mortgage insurance premium, although the interest rate is higher, the total monthly payment is lower. For example, compared to a standard FHAinsured mortgage with a $150,000 loan amount and an interest rate that is 1% below the NoMI interest rate, the monthly payment for a NoMI loan would be $80-$100 less, providing greater affordability or an additional $15-$20,000 in purchasing power. A down payment assistance loan (also a 30 year fixed rate) can also be obtained with the NoMI mortgage for up to 4% of the first mortgage amount.
Grant S. Whitaker, President and CEO of Utah Housing, stated, “Utah Housing is eager to provide the NoMI loan product because it offers the lowest monthly mortgage payment available to Utah’s low and moderate income home buyers. The extra layer of risk Utah Housing takes on with the NoMI loan is offset with higher credit score requirements, higher interest rate and tighter loan underwriting. Those who don’t qualify for NoMI will find Utah Housing offers three other loan programs that provide much needed down payment assistance and competitive interest rates.”
The NoMI Loan is available to home buyers with credit scores of at least 700 and is not limited to first time home buyers. As with all Utah Housing loan programs, income and purchase price limits exist for the NoMI loan and can be found on Utah Housing’s website at to www.utahhousingcorp.org and selecting “Homebuyer” and then “Loan Programs”.
To find out more about obtaining a NoMI loan, contact one of Utah Housing’s participating lenders by going to Utah Housing’s website and selecting “Lenders”. Utah Housing has a network of nearly 40 mortgage lenders throughout the state that can provide Utah Housing mortgages.
Utah Housing Corporation has demonstrated responsible stewardship of its mortgages. The loan approval process is thorough and loans are serviced locally by Utah Housing Corporation throughout the life of the loan and borrowers can communicate directly with local customer service agents. The result is historically lower default rates compared to state and national averages.
About Utah Housing Corporation
Established by legislation in 1975 as an independent public corporation, Utah Housing Corporation is the leader in serving Utah’s affordable housing needs. No tax dollars are used. More than 68,000 Utah families have purchased homes with Utah Housing mortgages and down payment assistance.
Grant Whitaker: (801) 902-8200
Jonathan Hanks: (801) 902-8200