Idaho Mortgage Overview
Idaho is known as the 'Gem State' because
it is abundant in natural resources. Residents of Idaho love the incredible
weather, natural beauty, and the large number of outdoor activities available
year-round.
The average home price in Idaho is
$255,000, so it's a great place for first-time homebuyers and the median income
is around $61,000.
If you're thinking of buying a home in
Idaho, you have many mortgage options available:
Idaho conventional loans
Borrowers with great
credit have good luck with the Idaho conventional loans. You'll need low debt
ratios and stable income and employment. Borrowers can get a loan with just 3
percent down on their first home, but you'll pay Private Mortgage Insurance
until you pay the loan balance down to less than 80 percent of the home's
value.
Idaho FHA loans
Borrowers with hiccups on
their credit or a lot of debt, do better with FHA loans. The FHA program
requires just 3.5 percent down, but allows credit scores as low as 580. FHA
loans have flexible underwriting guidelines, but in exchange, they require
mortgage insurance for the life of the loan. If your credit score is between
500 - 579, you may still qualify, but with a 10 percent down payment.
Idaho VA loans
Veterans with a stable income
and 'decent' credit can take advantage of the VA loan program. You'll get 100
percent financing (no down payment), and flexible underwriting guidelines. As
long as you meet the program's disposable income requirements for your area and
family size, you'll be on your way to buying your first home with a VA loan.
Idaho USDA loans
USDA loans are an option for
borrowers who don't qualify for any other loan program. You must make less than
115% of the average income for your area of Idaho and live in the home as your
primary residence. USDA loans provide 100 percent financing and flexible
underwriting guidelines for borrowers.
First-Time Homebuyer Programs in Idaho
Homebuyer Tax Credit
The Idaho Housing and
Finance Association allows first-time homebuyers to take a tax credit
for up to 35 percent of the interest paid on the loan each year (up to $2,000).
Borrowers who meet the income requirements and who are first-time homebuyers
are eligible.
Down payment and closing cost assistance
If
you have good credit the down payment and closing cost assistance from the IHFA
provides two options:
Second mortgage
Receive up to 3.5 percent of
the sales price as a second mortgage at 5 percent for 10 years. Borrowers with
a 640 credit score who are first-time homebuyers may qualify.
Forgiven loan
Receive up to 3.5 percent of the
sales price as a forgivable loan over 7 years. You must contribute 0.5 percent
of the sales price of your own funds.
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