Utah Housing Corporation Loans: Every Program Explained for 2026

What Is the Utah Housing Corporation?

The Utah Housing Corporation (UHC) is a public corporation created by the Utah state legislature to make homeownership more accessible for low-to-moderate income residents. Unlike a government agency that originates loans directly, UHC works through a statewide network of approved lenders—mortgage companies like First Colony Mortgage—who originate the loans on UHC's behalf.

The core value proposition is straightforward: UHC uses its ability to issue tax-exempt bonds and leverage federal housing funds to offer below-market interest rates and down payment assistance (DPA) that standard mortgage products cannot match. Since its founding, UHC has helped tens of thousands of Utah families purchase homes who otherwise might not have been able to afford the upfront costs.

UHC administers several distinct loan products, each designed for a different borrower profile:

All four programs include access to UHC's down payment assistance, which comes in the form of a second mortgage or a grant. The assistance can cover your entire down payment and a portion of closing costs, removing the single biggest barrier most Utah buyers face.

Who Qualifies for UHC Loans?

While each UHC loan product has its own nuances, every program shares a core set of eligibility requirements:

• Occupancy: The home must be your primary residence. Investment properties and second homes are not eligible.
• Property location: The property must be located within Utah.
• Property types: Single-family homes, townhomes, condos (with project approval), and manufactured homes on permanent foundations are generally eligible. Multi-unit properties (2-4 units) may qualify under certain programs if you occupy one unit.
• Income limits: Your gross household income cannot exceed UHC's published limits for your county and household size.
• Purchase price limits: The home's purchase price must fall within the maximum allowed for the program and county.
• Credit score: Minimums vary by product—typically 620 to 660 depending on the loan type.
• Homebuyer education: Most UHC loans require completion of a HUD-approved homebuyer education course. Many free options are available online.
• Approved lender: You must work with a UHC-approved lender. Not every mortgage company participates in the program.

FirstHome Loan

The FirstHome Loan is UHC's flagship product and the most widely used program. It is structured as an FHA loan, meaning it is insured by the Federal Housing Administration and carries FHA's borrower-friendly guidelines.

How It Works

When you get a FirstHome Loan, your approved lender originates an FHA mortgage using UHC's below-market interest rate. The rate is typically 0.25% to 0.75% lower than standard FHA rates available on the open market. This lower rate is made possible by UHC's tax-exempt bond financing.

FirstHome Loan Details

• Loan type: FHA 30-year fixed rate
• Minimum credit score: 660 (some lenders may overlay higher)
• Minimum down payment: 3.5% (can be fully covered by UHC DPA)
• Mortgage insurance: Standard FHA MIP—1.75% upfront + 0.55% annual (for most loan amounts)
• First-time buyer requirement: Yes—you must not have owned a principal residence in the past three years
• Homebuyer education: Required
• DPA available: Yes—second mortgage or grant options (see DPA section)

Who Is the FirstHome Loan Best For?

The FirstHome Loan is ideal for first-time home buyers in Utah who have moderate credit scores and limited savings. Because FHA guidelines are more forgiving on credit history and debt-to-income ratios, this product opens the door for buyers who might not qualify for conventional financing. When combined with UHC's down payment assistance, it is possible to purchase a home with zero personal funds for the down payment.

Score Loan

The Score Loan is UHC's conventional mortgage option. Unlike the FirstHome Loan which wraps around FHA, the Score Loan uses conventional (Fannie Mae/Freddie Mac) guidelines and is not government-insured.

Score Loan Details

• Loan type: Conventional 30-year fixed rate
• Minimum credit score: 660
• Minimum down payment: 3% to 5% (can be covered by UHC DPA)
• Mortgage insurance: Private mortgage insurance (PMI) required if less than 20% down; PMI can be canceled once equity reaches 20%
• First-time buyer requirement: Generally required, though exceptions may apply in targeted areas
• Homebuyer education: Required
• DPA available: Yes

Why Choose the Score Loan Over FirstHome?

The Score Loan makes sense when your credit profile and financial situation put you in a position to benefit from conventional loan advantages:

• PMI cancellation: Unlike FHA mortgage insurance which lasts the life of the loan (for most borrowers), conventional PMI drops off at 20% equity. Over the long run, this can save you tens of thousands of dollars.
• Lower mortgage insurance costs: If your credit score is 700 or above, conventional PMI rates are often lower than FHA's annual MIP.
• Potentially lower total monthly payment: The combination of a slightly higher rate but lower MI can result in a lower overall payment for well-qualified borrowers.

NoMI Loan

The NoMI Loan (short for "No Mortgage Insurance") is one of UHC's most attractive products for borrowers who want to eliminate mortgage insurance entirely.

NoMI Loan Details

• Loan type: Conventional 30-year fixed rate with lender-paid mortgage insurance (LPMI)
• Minimum credit score: 700 (higher score requirements due to the MI structure)
• Minimum down payment: 3% to 5%
• Mortgage insurance: None—the cost of MI is built into the interest rate, which is slightly higher than the Score Loan rate, but you pay no separate monthly MI premium
• DPA available: Yes

How Does "No Mortgage Insurance" Actually Work?

With a NoMI Loan, UHC negotiates a structure where the mortgage insurance premium is paid by the lender as a one-time cost and absorbed into a slightly higher interest rate. You see one clean mortgage payment each month with no MI line item. The rate is higher than a standard Score Loan—typically by about 0.25% to 0.50%—but the elimination of the monthly MI payment often results in a net lower monthly payment.

Consider this example on a $350,000 loan:

The real advantage compounds over time: you save every month from day one, and there is no need to wait until you reach 20% equity for the savings to kick in.

HomeAgain Loan

The HomeAgain Loan is specifically designed for repeat home buyers—people who currently own or have previously owned a home. If you do not qualify as a first-time buyer under UHC's definition, HomeAgain is your path to UHC financing and down payment assistance.

HomeAgain Loan Details

• Loan type: FHA or conventional 30-year fixed rate (options vary)
• Minimum credit score: 660
• First-time buyer requirement: No—this is specifically for repeat buyers
• DPA available: Yes—second mortgage options
• Income & price limits: Same UHC limits apply

Key Differences From FirstHome

The HomeAgain Loan typically carries a slightly higher interest rate than the FirstHome Loan (often 0.125% to 0.375% higher) because the risk profile of repeat buyers differs from first-time buyers. DPA options may also be slightly more limited—for example, grant options may not be available through HomeAgain, though second mortgage DPA typically is.

Despite these differences, the HomeAgain Loan is still a strong option. If you owned a home previously but sold it, or if you currently own and are purchasing a new primary residence, this program gives you access to below-market rates and DPA that you would not find through conventional channels.

Down Payment Assistance Options Within UHC

UHC's down payment assistance is one of the most powerful features of the program. All UHC loan products offer some form of DPA, but the specific options differ. Here are the main types:

Second Mortgage DPA

The most common form of UHC down payment assistance is a second mortgage. UHC provides a separate, smaller loan that covers your down payment and sometimes a portion of closing costs. Key features include:

• Amount: Typically up to 6% of the first mortgage amount
• Interest rate: Usually 0% to a low fixed rate
• Repayment: Payments may be deferred (no monthly payment required), or amortized over a set term, depending on the specific program option chosen
• Due on sale: The balance is due when you sell, refinance, or transfer the property
• Forgivable options: Some second mortgage DPA options include partial or full forgiveness after a set period (often 5 to 10 years) if you remain in the home as your primary residence

Grant DPA

Select UHC programs also offer grant-based down payment assistance. A grant does not have to be repaid—it is free money toward your down payment. Grant details:

• Amount: Typically ranges from $2,500 to $10,000, depending on the program and availability
• Repayment: None—it is a true grant
• Availability: Grant funds may be limited and are often allocated on a first-come, first-served basis
• Trade-off: Grant options typically come with a slightly higher first mortgage interest rate compared to the second mortgage DPA option

Choosing Between Second Mortgage and Grant DPA

The decision between a second mortgage and a grant comes down to a rate-vs.-free-money trade-off:

• If you plan to stay in the home long-term (7+ years), the lower interest rate from the second mortgage option typically saves more money over the life of the loan than the grant amount.
• If you may move or refinance within 3-5 years, the grant option can be more valuable because you keep the free money and do not carry the second mortgage balance.

Income Limits by County (2026)

UHC income limits are based on Area Median Income (AMI) data published by HUD and are updated annually. The limits apply to your total gross household income, which includes income from all adults who will live in the home—not just the borrowers on the loan.

Below are approximate 2026 UHC income limits for the most common Utah counties. These figures represent the maximum household income for 1-2 person households; limits are higher for 3+ person households (typically 15% higher for 3-4 people, and up to 30% higher for 5+ people).

Important notes on income limits:

• These are approximate figures based on recent HUD AMI data. UHC publishes exact limits on their website, and your lender will verify eligibility at application.
• Household income includes wages, salary, overtime, bonuses, commissions, self-employment income, alimony, child support, Social Security, retirement income, and any other regular income for all household members 18 and older.
• Some targeted areas (census tracts with higher poverty rates or lower median incomes) may have higher income limits to encourage homeownership in those communities.

Purchase Price Limits

In addition to income limits, UHC programs also cap the maximum purchase price of the home you can buy. These limits are designed to ensure UHC assistance goes toward modest, affordable housing rather than luxury properties.

For 2026, the purchase price limits vary by county and are generally set at or near the FHA loan limit for the area. Approximate limits for common areas:

Purchase price limits for Summit and Wasatch counties are notably higher due to the elevated home prices in the Park City and Heber areas. UHC adjusts these limits to ensure the programs remain usable in high-cost areas while still targeting moderate-income buyers.

UHC vs. Standard FHA & Conventional Loans

How do UHC programs compare to getting a regular FHA or conventional loan without UHC? The differences are meaningful:

The bottom line: if you fall within UHC's income and price limits, their programs almost always offer a better deal than going through standard channels. The lower rate and built-in DPA are difficult to replicate through any other single program.

Step-by-Step: How to Apply for a UHC Loan

Applying for a Utah Housing Corporation loan follows the same general path as any mortgage, with a few UHC-specific steps. Here is the complete process:

From initial contact to closing, the typical UHC loan timeline is 30 to 45 days once you are under contract. The extra UHC compliance review adds roughly 3-5 days compared to a non-UHC loan.

Combining UHC With Other Programs

One of the most common questions borrowers ask is whether they can stack UHC assistance with other help. The answer depends on the source:

Programs You Can Often Combine With UHC

• Municipal or county DPA programs: Some cities and counties in Utah offer their own down payment assistance. In certain cases, these can be layered on top of UHC's DPA. For example, Salt Lake City, Provo, and West Valley City have periodically offered local assistance programs that may be compatible with UHC.
• Employer-assisted housing programs: If your employer offers housing assistance, these funds can typically be used alongside UHC financing.
• Gift funds: Family members can gift you money for the down payment or closing costs. These gifts can supplement UHC's DPA.
• Federal tax credits: Depending on UHC's current offerings, you may be eligible for a Mortgage Credit Certificate (MCC) that provides a federal tax credit for a portion of your mortgage interest paid each year.

Programs You Typically Cannot Combine

• Other state-level DPA programs: You generally cannot combine UHC's down payment assistance with DPA from another state housing agency or duplicate state-level program.
• Programs with conflicting lien requirements: Some DPA programs require specific lien positions that conflict with UHC's second mortgage.

Your lender should analyze which combinations are permitted and which will save you the most money. This is one of the areas where working with an experienced UHC lender makes a real difference—an inexperienced lender may not know about compatible programs or may fail to structure the loan to maximize your benefit.

Frequently Asked Questions

Why Work With Felix for UHC Loans

Navigating UHC programs is not difficult, but getting the best possible outcome requires a lender who genuinely knows these products inside and out. Here is why buyers across Utah choose Felix Vivanco for their UHC loans:

• UHC-approved lender: Felix is approved to originate all UHC loan products through First Colony Mortgage (NMLS #3112). Not every loan officer has this approval or the experience to guide you through UHC's compliance requirements.
• Program-matching expertise: With multiple UHC products available, the wrong choice can cost you thousands over the life of the loan. Felix analyzes your credit profile, income, timeline, and goals to recommend the specific program and DPA option that saves you the most money.
• Bilingual service: Felix serves Utah's English and Spanish-speaking communities, providing full-language support throughout the mortgage process. Se habla español.
• Fast, transparent communication: You will have direct access to Felix throughout your loan process—not a call center, not a rotating team. When questions come up, you get answers from the person who knows your file.
• Local market knowledge: Based in Utah County and serving buyers statewide, Felix understands the local real estate market, county-level program variations, and how to position your offer competitively even when using DPA.