How to Buy Your First Home Without Paying Monthly Mortgage Insurance

I have been a mortgage lender for 19 years, and my team is one of the top in America. We help buyers navigate home financing across 48 states. For the two states where I am not licensed, Utah and Rhode Island, my trusted colleague Julie Felsman is ready to help you. Today, I am excited to share a breakthrough option that has quickly become my new favorite first-time homebuyer program, specifically designed to address the intense affordability challenges so many Americans face.

The Problem With Typical Homebuyer Programs

Let's get real: I do not like most first-time homebuyer programs. Many are garbage because they come with hidden traps, like demanding a share of your future home equity or charging high discount points. Others lock you into a loan where you cannot refinance in the future. Even worse, many programs that look good are unicorn loans, meaning only one out of 100 buyers qualifies. I refuse to recommend unrealistic options, which is why I am so eager to highlight a program that actually works for real people.

Meet the Forget Mortgage Insurance Program

The program is called Forget Mortgage Insurance, and it does exactly what the name implies. Normally, if you put down less than 20% on a conventional mortgage, you pay an extra monthly fee called mortgage insurance, which only protects the lender. If your credit score is on the lower side, this fee can be expensive. Other lenders often pitch no-mortgage-insurance loans by charging steep upfront buyout fees or sneaking it into a higher interest rate. This program completely removes the monthly mortgage insurance payment without those sneaky traps.

Essential Guidelines and Credit Score Requirements

To qualify, you must meet a few specific guidelines. This is a true first-time homebuyer program, meaning you cannot currently own other properties. Furthermore, everyone on the mortgage application must intend to live in the home as their primary residence. If you are an investor looking to buy a property, or if you want non-occupant co-borrowers like parents who will not live there, this loan is not the right fit. As long as at least one applicant is a first-time homebuyer and everyone lives in the home, you qualify.

When it comes to credit requirements, the parameters are straightforward. As of August 2026, the minimum credit score required for this program is 660. Because guidelines can adjust over time, it is vital to know where you stand right now. If your credit score is sitting just under that mark, such as at 658, my team and I can work with you to help raise your score so that you can qualify for this excellent loan structure.

Understanding Income Limits and Property Rules

This program is designed to support moderate-income households, meaning there are clear income restrictions. Your household income must be at or below 80% of the area median income for the specific city or county where you are buying. Because these limits are highly localized, your eligibility can change dramatically just by moving your home search a few miles down the road. This makes it incredibly important to work closely with us so we can verify the exact limits for every property.

Many people assume that an 80% area median income limit rules out major metropolitan areas, but that is not true. For example, in Santa Rosa, California, 80% of the area median income is $106,000 a year. That is a very solid income limit, especially for someone looking to buy a home priced around $400,000 or $500,000. Additionally, this program is strictly for single-family residences, condominiums, and townhouses with homeowners associations. It cannot be used to purchase multi-unit properties.

How to Check Your Local Eligibility

Because this is a conventional loan program backed by Freddie Mac, we use the official Freddie Mac online lookup tool to determine your exact geographic limits. By entering the address of the home you want into the lookup tool, we can instantly see the area median income and verify if your household income falls at or below the 80% threshold. My team at Guaranteed Rate has this tool ready to go, and we can run these numbers for you in just a few minutes.

I had CJ on my team compare this program's rates and costs against another popular first-time homebuyer option that offers discounted rates based on income. Even with those discounted rates, the Forget Mortgage Insurance program saved our client more money on their monthly payment. This is not a gimmick or a loan with hidden, inflated interest rates. It is a genuine, cost-saving mortgage structure designed to make monthly payments much more approachable for real families.

The Bottom Line

The housing market presents real affordability challenges today, but the Forget Mortgage Insurance program is a powerful tool that makes homeownership realistic. If you are a first-time homebuyer with a credit score of 660 or higher, this unique Guaranteed Rate program could save you hundreds of dollars every month by eliminating mortgage insurance. My team and I are licensed in 48 states and would love to help you purchase your home. Please call us at 786-933-2077 to discuss your options, check your local area median income limits, and take your first step today.