Loan Programs Available

Even though the Homebuyer Tax Credit for first time and ‘move up’ buyers will expire on April 30, 2010, buyers should not let that deter them from entering this market. There are many loan programs and low interest rates still available to meet the needs of various buyers. 

The most common loan programs are Conventional and Federal Housing Administration (FHA) loans.

General guidelines for a Conventional loan are:

• - A 95% maximum loan-to-value (LTV)
• - Minimum down payment of 5%
• - No income restriction
• - Mortgage insurance is required above a 80% LTV
• - Maximum loan amount is $417,00
• - Borrower needs two months of reserves
• - Debt-to-Income (DTI) at 50%
• - Credit score of 620 or higher

General guidelines for a FHA loan are:

• - A maximum loan-to-value (LTV) of 96.5%
• - Minimum down payment of 3.5%
• - No income restrictions
• - A 0.55% mortgage insurance rate
• - Maximum loan amount of $303,750
• - No reserves
• - Debt-to-Income (DTI) no greater than 43%
• - Credit score of 580 or higher

 

In addition to these loan programs, the Idaho Housing and Finance Association and Boise City offer affordable housing programs to assist low-to-moderate income households in obtaining financing to purchase a home.  Please refer to http://idamortgage.com/  and http://cityofboise.org/housing  for more information on these programs.

Please contact Paula Johnson at paulajohnson@windermere.com  to learn more about these programs or for any of real estate needs.

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