Idaho FHA Loan Programs
Now is a fantastic time to buy a house in Idaho. Since the economy is still slightly unstable, housing prices are at their lowest in years and sellers are often eager to negotiate over asking price. If you've been thinking about buying your first home, there's no time like the present! First time homebuyers are often, however, concerned about financing. If you fit that description, you should strongly consider obtaining a loan through the Idaho FHA loan program.
Why FHA Loans?
Administered by the Federal Housing Administration, the Idaho FHA loan program is dedicated to providing buyers with alternatives to traditional financing. The FHA provides banks with guaranties for the monies lent under the FHA program which in turn compels the bank to be more lenient when it comes to the potential borrower's credit situation. If you are concerned about your credit (due to a bad credit score or a lack of credit experience) or have even had a bankruptcy filing, the FHA will work with you.
Another great advantage of getting an Idaho FHA loan rather than a traditional loan is that the FHA program only requires a down payment of 3.5% of the purchase price instead of the traditional 20% still required by most banks. Combined with the option to roll your closing costs into the loan, the lower down payment can make homebuying far more accessible to those having trouble coming up with a large sum of cash.
Idaho FHA Loan Limits
Idaho's FHA loans do have a cap on the amount of money they will lend. The limit is set each year and is based on the median home price around the country, then adjusted for high cost of living areas, which ensures that even people living in expensive housing markets can take advantage of the FHA program.
The 2009 limit is $271,050 for a single family dwelling, but in Boise city, the limit is $303,750. In Valley, the limit increases to $462,500. For most other locations in the state, the limit for a single family residence is $271,050. However, if you're considering an Idaho FHA loan, you'll need to check with your lender to establish the limit for your location, particularly if you're thinking about buying a multi-family residence since the limits are different on these types of dwellings.