Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Idaho
Idaho First-Time Homebuyer Programs
Idaho residents who want to buy their first home can choose from a variety of options when shopping for loans. However, it is important to understand the different mortgage options.
The Federal Housing Administration insures FHA loans and protects lenders against financial risk. The 3.5% down payment requirement makes these loans a viable option to young homebuyers who don’t have the time or credit history to save for large down payments.
Conventional loans are mortgages that the government does not guarantee (e.g. FHA). These mortgages may have fixed or adjustable rates and require a downpayment of at least 20%. Conventional loans can also conform to Freddie Mac and Fannie Mae guidelines. These loans are “conforming” loans that any agency can back.
VA Home Loans can be accessed through the Veterans Affairs Department or backed by them. They are available to eligible spouses, veterans and service members. These loans have a low interest rate and are available to all qualified borrowers for no money down.
USDA-backed mortgages are provided by the USDA’s Rural Department of the United States Department of Agriculture (USDA). This department aims to create healthy, sustainable rural communities. These loans can be used to help low- and moderate income residents get affordable housing.
Idaho doesn’t have a down payment programme similar to the First-Time Homebuyer Assistance Programs in Hawaii.
The Idaho Housing and Finance Association, through its Good Credits Rewards Program, offers down payment and closing costs assistance to homebuyers with good credit. This assistance can help lessen the out-of-pocket costs associated with the mortgage process.
The Good Credits Rewards program offers eligible applicants assistance with closing costs and down payment. The assistance funds, however, are based on the applicant’s need. It come as a 10-year second mortgage that works with an Idaho Housing primary mortgage. Moreover, the second mortgage is offered 2% over the Idaho Housing’s standard interest rates. Borrowers can also easily become eligible for the loan amount they need with low monthly payments over a 10-year term. The maximum loan amount for down payment assistance is either 2.5% or $8,000 depending on which is lower.
Every applicant must meet the specific requirements in order to qualify for the Good Credit Rewards Program. Homebuyers intending to fund using the Advantage or Preferred primary mortgage must have a minimum credit score of 680. Whereas applicants who are applying with First loans products must have 640 or higher. The applicants must also contribute at least .5% of the purchase price using their own money. The first-time homebuyers income limits also apply for FHA loans. In addition, if both borrowers are first-time buyers, at least one must take the Finally Home!® Homebuyer Education class. This course covers many topics, such as budgeting, understanding credit, closing processes, and the costs of buying a home.
Are you interested in the First-Time Homebuyer Assistance Programs in Illinois?