First Time Home Buyer Programs Idaho | All You Need to Know

If you are buying a house for the first time, you’ll surely be scared. No matter what part of the world you are living in, buying your first home is always a big decision. Your first house is something you remember for your whole life, which makes this decision quite important and scary as well. Most first home buyers are not aware of the process involved and what things they need to do both financially and legally. This article focuses on such programs that help first-home buyers in Idaho. Thus, if you are buying your first house in Idaho and are looking for some guidance, this article is all you need.

ID Home Buyer Overview

According to Redfin, the average listing price in Idaho by the end of 2021 was $614,450. In Idaho, no official government agencies help people regarding helping the first home buyers, but don’t worry; many private sectors are working efficiently and effectively and offering many affordable deals and packages to the people buying their first homes.

When buying a new house in Idaho, there is a minimum 3% down payment on a conventional mortgage. But, there’s some good news: a person eligible for a VA loan or a USDA loan would not need to pay any down payment. To avoid any down payment, one needs to know the loans they can apply for. House buying loans that one can apply for are presented as follows:

House Loans

For first-time home buyers in Idaho, there are some conventional loans one can apply for with low-interest rates. Sometimes, the buyers need to pay a down payment as high as 20 %. Fortunately, it is considered that first buyers save that much before buying, but they don’t need to pay about 20 % just as a down payment if they get approved for even any one of the following loans:

• VA Loan:  VA loans are only for veterans and service members. In this loan, 0% down payment is required. VA loan requires no ongoing mortgage insurance after closing, and they have the best mortgages, so one should apply as soon as possible.
• USDA Loan: USDA Loan is for those who earn low-to-moderate incomes and are looking to buy in designated rural areas. No zero down payments are also required here, and they offer meager mortgage insurance rates.
• Conventional 97: Conventional 97 loans require just a 3 % down payment and a credit score to be a minimum of 620. With this loan, one can stop paying mortgage insurance within a few years; they just need to reach 20 % home equity.
• Idaho Housing Loans: They have many offers and offer many kinds of reasonable interest rates and excitingly low down payments.

ID Home Buyer Programs

There are no official government home buyer loans in Idaho, but there are alternatives like Idaho Housing.

Idaho housing is a financial institution that supports its business activities with revenue like any other private financial institution. It offers a range of mortgage types, including standard loans and FHA, USDA, and VA loans. It also says it provides “low financial prices in Idaho.”

One must meet the income limits to qualify for the Idaho Housing program, which reached $125,000 in January 2022. But the website does not mean that all of the family income or the borrower’s income. These programs often come with other eligibility options, such as low credit scores and high home prices.

First-Time Home Buyer Grants

There are no grants in Idaho Housing, but they offer a second mortgage (in the form of a loan). The first is a standard loan with a 5 % interest rate payable within ten years. An income capital of $125,000 is required, and you must contribute 0.5 % of the sales price from your resources.

The other one is a forgivable loan. It’s a better option as it has 0 interest rates but also some limitations. For example, one can borrow only up to 5 % of the sales price.

House Rate Based on Location

The mortgage rates, interest rates, house prices, and loan programs available differ according to the different cities in Idaho. So, if you are looking for a house in a specific town, check for loan programs, house pricing, and down payments eligible in that city.

Resources

The following is the list of valuable resources. As discussed earlier, home buyer programs differ according to different cities; thus, the following list provides some good first home buyer options from other towns of Idaho.

• Blaine County Housing Authority – offers affordable housing opportunities in Blaine County.
• Boise City – Provides excellent choices for people or families that don’t earn well to have their own home in Boise City Limits.
• City of Nampa – They don’t just deal in housing but assist in housing and social resources.
• Community Contacts – They work to help you out in researching if your society offers HUD services that help pay for or close your expenses
• Habitat for Humanity – By volunteering, build and repair homes for needy families.
• Idaho Housing and Finance Association-  Offers programs for people buying homes, including low mortgage and closure costs.
• Idaho Development and Housing Organization – Much independent assistance and ownership of your home programs are provided through this organization and that too in various regions. 
• North Idaho Housing Coalition – It buys dilapidated houses, repairs them, making them look as good as new, and sells them to interested buyers for a reasonable price.
• Rural Development Programs and Services – If you want to buy a house in rural areas, this company has programs specifically for you. 
• Southeastern Idaho Community Action Agency – A friendly neighborhood community assisting its neighbors
• Homeownership Vouchers – Some agencies help people to own their house, and in doing so, they use the help of Homeownership Vouchers using their Home Voucher Choice Program.

ID Mortgage Rates

The mortgage rates keep fluctuating due to political and economic reasons. While buying a house, one should keep checking online to look for any recent changes. Moreover, they should get rates from at least three mortgage lenders and seek out the best one for them.

Conclusion

There are no official government programs to help first-time home buyers, which doesn’t make it impossible for anyone to buy one. There are many private programs. All one needs to do is explore each option and pick the most suitable one.

Disclaimer: We don’t recommend any broker or agency or involve in any kind of this recommendation. We don’t affiliate with any, and we are not taking any commission/benefit from this. Do your own research and take any step on your own responsibility.