The Best Mortgage to Get as a First Time Home Buyer in Idaho
Idaho home values are on the rise, a trend which is predicted to continue throughout the next year.
According to Zillow, the median home value is currently $195,700, marking a significant increase of 10.3 percent within the past year.
Experts predict that home values will continue to rise by as much as 3.8 percent in 2018, which may be challenging for a first-time home buyer in Idaho hoping to get a competitive mortgage rate.
With accelerated home values, finding the best Idaho first time home buyer loan is crucial for Idaho first time home buyers to ensure that homeownership remains affordable over the long-term.
Hidden Costs for Idaho First Time Home Buyers
Most mortgage lenders in Idaho will disclose additional closing costs in Idaho that come within the first stages of homeownership.
To ensure that the first few months of homeownership are as manageable as possible, first time home buyers in Idaho should be prepared for these costs before signing off on a mortgage.
While researching your options for Idaho first time home buyers, it’s helpful to consider the following “hidden costs” of mortgage rates:
- Mortgage application fees (typically 1-2 percent of the total purchase price)
- “Good faith deposit” (helps the seller know that you intend to buy)
- Down payment (20 percent of the total mortgage)
There are also closing costs in Idaho to consider, which can include a wide range of expenses from:
- Mortgage points
- Attorney’s fees
- Inspections or surveys
- Title insurance
- Escrow deposit
- City recording fees
Although all mortgages are subject to differences depending on loan amount, location, appraisal, etc., Investopedia estimates that the average closing costs for Idaho first time home buyers come to $1,682.
First Time Home Buyer Programs in Idaho
Aside from the mountains of paperwork and lists of financial jargon, many first time home buyers in Idaho find that saving towards a down payment is a significant financial hurdle.
Thankfully, there are plenty of first time home buyer programs in Idaho that are meant to help contribute down payment assistance in Idaho.
Below, we have listed a few local first time home buyer programs in Idaho that a first time home buyer in Idaho may be able to benefit from.
- Good Credit Rewards Program—First time home buyers in Idaho with a minimum score of 640 can combine Good Credit Rewards with another lending product
- Affordable Housing Loan Program—Provides up to $35,000 in financing for Idaho first time home buyers that build or purchase a home in Boise
- Self Help Opportunity Program—Offers up to $20,000 in down payment assistance in Idaho for homeowners that build 15 percent of their home
Depending on eligibility requirements, Idaho first time home buyers may also be eligible for other types of first time home buyer programs available throughout the country, listed below.
- FHA Loan—Issued by the Federal Housing Authority with smaller down payments and lower credit requirements
- FHA 203(k)—Allows first time home buyers in Idaho to include renovation funds for fixer-upper homes
- USDA Loan—Offered by the U.S. Department of Agriculture for homes in certain rural areas
- VA Loan—For active-duty military members, veterans, and surviving spouses
- Energy Efficient Mortgage—Designed to help first time home buyers in Idaho create an energy-efficient home
Conclusion – Getting the Best Mortgage as a First Time Home Buyer in Idaho
Purchasing a home for the first time can be an incredibly exciting time. After all, an Idaho first time home buyer loan marks an important milestone in the transition from renting to homeownership.
As a first time home buyer in Idaho, don’t forget to ask yourself the following questions throughout the process:
- Do I have enough in savings to cover additional Idaho first time home buyer costs?
- Do I qualify for down payment assistance in Idaho?
No matter whether you’re ready to start house hunting or simply exploring your possibilities, understanding your options can make a world of difference when taking out your first Idaho first time home buyer loan.
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