First Time Homebuyer Loans
First Time Homebuyer Loans
Looking to own your first home, but not sure where to begin? First-time homebuyers can receive monetary assistance and guidance from a lender to help them find the most affordable and comfortable home for their needs. For aspiring homebuyers in Idaho, the Idaho Housing and Finance Association offers assistance to make the investment of purchasing a home more manageable. Mortgage of Idaho is happy to help our customers obtain first-time home buyer discounts and loans. Our mortgage lenders are here for you every step of the way in the home-buying process.
Who Is A First-Time Homebuyer?
One of the most important parts of a first-time homebuyer loan is who is eligible to receive these funds. In order to qualify for a first-time homebuyer loan, a person needs to have never owned a home before or not owned a principal residence in the last three years. In Idaho, homebuyers will need to have filed an Idaho income tax return for the most recent tax year in order to receive benefits from their local homebuyer program. The good news is that even if you have owned a home before, but have been renting a residence for over 3 years, you can receive assistance once again.
Idaho Housing First Loan
For those looking to purchase their first-ever home in the state of Idaho, this loan is a great option with competitive rates and low mortgage insurance. Interest rates, closing costs, and mortgage insurance are often what make owning a home less obtainable for young homebuyers. Idaho Housing First Loans can provide down payment assistance and competitive interest rates through a qualified lender.
Contact Us Today
Homeownership Opportunity Program
The Homeownership Opportunity Program provides monetary assistance for down payments and closing costs, sometimes between $20,000 to $30,000. In order to qualify for this program, homebuyers must complete homeownership education counseling and be able to contribute up to $1,000 of their own fund when purchasing a residence. The city of Boise has its own Homeownership Opportunity Program, which will help cover down payments, closing costs, and provide principal assistance to homebuyers, funded through HUD (U.S. Department of Housing and Urban Development) funds.
HFA Advantage and HFA Preferred Loans
HFA Advantage loans are offered in partnership with Fannie Mae (a government-sponsored enterprise, also known as Federal National Mortgage Association), which helps borrowers with lower incomes have the funds for down payments and closing costs. Through HFA Advantage, homebuyers can put 3% down and have fewer credit requirements. Traditional loans can come with high insurance premiums or strict regulations on credit scores, but through HFA Advantage, those with limited funds may be able to afford their first home.
HFA Preferred loans are a partnership with Freddie Mac, another government enterprise (Federal Home Loan Mortgage Corporation), that helps low-to moderate-income individuals. Similar to HFA Advantage, HFA Preferred loans will require a smaller percentage of a down payment and lower insurance premiums. Both of these loan types are designed to provide extra assistance to homebuyers who may just fall short of the money required to purchase a home. HFA Advantage and HFA Preferred loans are available to potential buyers across the U.S.
Get The Best Mortgage Rate With Our Professionals
Our lenders at Mortgage of Idaho have experience working with homebuyers of all incomes and backgrounds. We are dedicated to helping you achieve one of the biggest steps of your adult life, purchasing a home. Finding the means to cover all of the intricate costs of homeownership can be tricky for many people across the state of Idaho. Mortgage of Idaho can help educate potential buyers about any assistance that is available, provide competitive interest rates, and make your journey as smooth as possible. Reach out to us to learn more about loan types and get started on the path to homeownership today!
Frequently Asked Questions
What Credit Score Is Needed For First-Time Homebuyers?
Depending on the loan you are applying for, your credit score will change. A good range for first-time homebuyers is around 500-620. Conventional loans will typically require 620 or above, while other loans can vary depending on how much money you plan to put down. Building your credit score now will help you qualify for a higher borrowing rate, helping you get your dream home.
Do First-Time Homebuyer Loans Cover Closing Costs?
Yes, some programs will specifically pay for the closing costs. Some states and local loans or grants can be used for either a down payment or closing costs. Borrowers can often receive up to 6% of their loan amount to use for closing costs.