Congratulations on your intention to become a homeowner in Idaho! The Gem State has plenty of space and all types of terrain, from forests to deserts to mountains. If there’s one thing that unites Idahoans, it’s an appreciation for the outdoors – how this is appreciated varies by person, everything from hunting and fishing to whitewater rafting to simply having a brisk stroll and breathing the fresh air.
The state’s diverse geography also is such that you can have all sorts of enjoyable experiences in the great outdoors, and then, within just a few minutes in some communities, you can jump into an urban city with modern touches, everything from art galleries to trendy nightclubs to coffee shops.
For those considering relocating here, or putting down roots if you’re already living in Idaho, there’s great news: much of the property is generally less expensive than in many Western states. Plus, there are quite a few programs available to help people find and afford their perfect spot, whether it’s acreage in the country, a loft in the city or a charming home in the suburbs.
Here are options for first time home buyer in Idaho.
Idaho Housing and Finance Association
This financial institution has been established to place more people into homes, especially those seeking or who qualify for affordable housing. It partners with a variety of lenders and the U.S. Department of Housing and Urban Development to help finance and develop housing options. Rental assistance is available to those who qualify, but the bulk of the IHFA’s efforts center around being a useful resource for Idahoans considering and seeking home ownership. Some of the association’s online services include tools to help determine one’s eligibility and also estimating the cost for home financing and estimated monthly payments based on current income levels. First-time purchasers can receive lower fixed interest rates, plus a lower down payment, assistance with closing costs and homebuyer tax credits up to $2,000 or 35 percent of the mortgage interest paid each year. The IHFA has a strong focus on education, and encourages potential applicants to take a variety of classes in their communities or attend free housing counseling so they fully understand the mortgage and lending process.
Idaho Rural Development Loans
The U.S. Department of Agriculture offers a variety of programs in every state which are designed to encourage people to live in safe and sanitary housing outside of urban areas. Generally, this includes communities under 35,000 residents. Different levels of assistance are available for lenders who want to work with low-income and medium-income people interested in financing, purchasing, building or rehabilitating a single-family home under 1,800 square feet, or multi-family dwellings. Along with the actual home costs, the funds could include other aspects of a home, such as new appliances, carpeting or fixtures. With payment assistance, interest rates for these applicants could go low as 1 percent, with a 33-38 year term, which could definitely be appealing to someone trying the homeowner process in Idaho for the first time. In addition, other Rural Development funds are available for applicants in the form of short-term payment assistance loans to help low-income or very low-income people with their mortgage payments as they get accustomed to the monthly mortgage process.
Idaho VA Loans
The Veterans Administration offers a selection of lending programs which are designed to encourage active duty servicemen or servicewomen, retired veterans, or surviving spouses of veterans, to purchase, build or repair homes. These loans are provided by private lenders, such as banks, but the Veterans Benefit Administration guarantees the loan, which can create more appealing terms and add more favorable options for the applicants. Available features can include purchase loans or refinance loans with a lower interest rate than military-affiliated applicants would find if they applied on their own. Native American veterans also can receive additional discounts for building/purchasing on federal trust land. Veterans with a service-related disability can also receive additional financing to help make improvements or modifications at their home to accommodate this disability. A VA loan could be a good option for someone who must relocate to Idaho for military purposes, such as at the Idaho National Guard headquarters in Boise, various Guard locations through the state or Mountain Home Air Force Base. Or it could be an option for someone retiring from the military that wants to end up in Idaho, but is looking for attracting financing options. Idaho’s Division of Veterans Services is available to help with related VA benefit questions, including housing.
HUD Assistance Idaho
The U.S. Housing and Urban Development’s FHA program offers Idahoans the opportunity to purchase mortgages, or rehab/repair an existing home, improve energy efficiency or create a reverse mortgage, where a lender basically buys someone’s home back from them. This could be appealing to retirees who would rather have a greater cash flow. The loan is funded by a lender but insured by HUD. Borrowers are eligible for just over 96 percent of financing, and can finance mortgage insurance premium costs into the mortgage. An annual fee will be charged, however. Some private lenders will be approved to discuss FHA loan options with possible applicants, and a list of approved lenders can be found on the HUD site.
Indian Home Loan Guarantee
It’s not just Native American military veterans in Idaho who can receive benefits or assistance for buying or constructing a home. HUD offers programs through the Bureau of Indian Affairs that helps Native Americans in Idaho and other Northwest states with home financing, or at least help them understand the process. Though applicants are encouraged to live on recognized tribal lands within a state, the HUD regulations say that they can live anywhere as long as other conditions are met. The loan is good for up to 41 percent total debt to gross income, and a down payment of 2.25 percent, unless the property is valued at less than $50,000, so a 1.25 percent down payment is required.
2 Point Highlight
Approved lenders can have information about different types of loans.
People in certain groups, such as veterans or Native Americans may be able to qualify for lower interest rates, lower down payments or other modifications.
