Reality Check: Even if you are currently renting, you’re paying a mortgage – your landlords mortgage! Monthly rents have shot up throughout the entire Treasure Valley and now more than ever, renters are realizing that the amount they are paying every month could easily be paying an actual mortgage – for a home you own. There are many programs that can help you make that dream a reality.
National Programs & Grants
FHA
A significant portion of first time home buyers will utilize an FHA (Federal Housing Administration) loan. An Idaho FHA loan is a loan that is backed by the government and buyers are required to put down at least 3.5% of the loan amount in order to purchase a home. What most people don’t know is that there are Idaho first time home buyer programs out there to help first time buyers buy a home with little money down. Some Data Driven Real Estate clients have purchased their first home with as little as $500 down.
Fact: Nearly two-thirds of recent home buyers put down less than 20%. 26% put down just 1%-5% and 10% put down 0%.
USDA RURAL DEVELOPMENT PROGRAM
Designed to help with homeownership in rural areas, Rural Development provides 100% financing with lower fees than most of the other programs. Unfortunately, most parts of Ada and Canyon counties don’t currently qualify. However, one popular qualifying area is Kuna! So if you’re willing to be “out in the country” that is Kuna, an RD loan is worth looking into.
Idaho State and Local Programs & Grants
The Idaho Housing and Finance Association or (IHFA) can help when it comes to helping you get the keys to your first home. These home buyer programs can vary by lender and have various requirements, but here is a quick overview.
IHFA FIRST PLUS GIFT PROGRAM
IHFA provides up to a 2% gift towards your down payment and can be combined with your Idaho FHA loan. So if you need 3.5% down payment, IHFA can help with 2% of that, leaving only 1.5% to put down.
- Minimum credit score 620.
- Income must be less than $74,800 in ADA County and $89,760 in Canyon County.
- Minimum Borrower needs to bring to closing: $500.
IHFA FIRST PLUS 2ND MORTGAGE
The word 2nd mortgage can sound scary, but essentially, you would have your primary mortgage and a small second to pay monthly.
- Minimum credit score 680. First loan credit score minimum is 640.
- Income limits apply when used with an FHA loan.
- Minimum Buyer needs to bring to closing: 0.5% of Loan Amount.
DOWN PAYMENT ASSISTANCE
Just as it sounds, this is a program that helps provide up to 3% of your down payment on your loan or closing costs.
- Minimum credit score 680.
- Income limits up to $110,000. Can be used with FHA.
- Minimum Buyer needs to bring to closing: 0.5% of Loan Amount.
CITY OF BOISE LOAN PROGRAMS
The city of Boise offers home loan programs to buyers, as well as affordable “pocket” neighborhoods. The city may provide up to 25% for your down payment. This loan comes in the form of a 2nd mortgage and you must be purchasing a home within the Boise City Limits.
- Minimum credit score 620.
- Income must be less than $41,250 to $77,750 depending on the household size.
- Minimum Buyer needs to bring to closing: 0.5% of Loan Amount.
These are just a few of the programs available to first time home buyers in Idaho. Hopefully, the thought of financing your home purchase doesn’t seem as scary now that you know there are options. And although home prices are on the rise in the Treasure Valley, now is still a great time to buy a home. Mortgage rates are at historic lows and lenders are more than willing to help you get into the home of your dreams.
So stop making a monthly deposit into your landlord’s bank account and start investing in yourself and your future! If you’re ready to get started, we are here for you.
