FHA and Other Loans Available in Idaho

Purchase Loans

Conventional

A conventional loan is among Americans’ most in-demand mortgage options. The federal government doesn’t guarantee or insure conventional loans like it does FHA and VA loans. Instead, private lenders back these loans, making them flexible when it comes to the following:

• Property types

• Loan amounts

• Requirements for credit scores

Conventional loans usually require higher credit scores than loans that are government backed. You must pay between 3% and 5% down depending on your qualifications as a borrower and your chosen loan product.

A conventional loan offers numerous term options, ranging from a decade to three decades, so you can choose a term that best fits your financial situation. Another reason to choose a conventional loan is that you don’t have to pay private mortgage insurance with a down payment of 20% or more of your home’s purchase price. Eliminating mortgage insurance can help you save money long term.

FHA

An Idaho FHA loan, which is government backed, is available through the nation’s housing administration. An FHA loan can help moderate- and low-income loan applicants who may not be eligible for a conventional loan due to failing to meet down payment or credit score requirements.

A significant benefit of an FHA loan is that it doesn’t require a large down payment, making it ideal for first-time home buyers in Idaho. Just 3.5% of your home’s purchase price is all you need to qualify for the loan, so you don’t have to save up a large sum of money to achieve your dream of home ownership. Another benefit of an Idaho FHA loan is that you can qualify for one even if you have had a past foreclosure or bankruptcy.

Note that FHA loans do have a few cons as well. You’ll have to pay a mortgage insurance premium, increasing your loan’s overall cost. You’ll also face limits on how much you can borrow when you choose an FHA loan, which may be problematic if you’re trying to buy a high-end home. It is paramount that you consider FHA loans’ many advantages and disadvantages before deciding.

VA

Unlike a conventional loan and like an FHA loan in Idaho, a VA loan receives its backing from the federal government. It’s available to service members in the military, making homeownership more accessible and affordable to members of the military. You can also take advantage of a VA loan if you are a veteran or an eligible surviving spouse. The U.S. veterans affairs department guarantees each VA loan, meaning it protects a lender from loss in the event a borrower defaults.

Even if you’re a first-time home buyer in Idaho, A major advantage of a VA loan is that no down payment is required. The zero-down-payment requirement can immensely help families in the military who don’t have much cash saved up. VA loans also usually have lower rates of interest than conventional home loans, potentially saving borrowers thousands over the years.

Yet another reason to take advantage of a VA loan over a conventional or FHA loan in Idaho is that you don’t need to pay mortgage insurance with this loan option. Mortgage insurance is instead required for a conventional loan when the down payment is under 20%. The absence of mortgage insurance may save you hundreds a month, leading to remarkable cost savings over your loan’s life.

USDA

A USDA loan is another government-backed option available through the U.S. agriculture department for homebuyers in suburban or rural areas. It’s an affordable financing option for moderate- and low-income individuals who can’t obtain traditional home financing.

Unlike FHA loans in Idaho, USDA loans don’t require down payments at all, meaning borrowers can easily finance their home purchases. They also make owning a home more affordable since their interest rates are lower than conventional loans. You can qualify for a USDA loan to buy a home for your family or complete property renovations and repairs if you meet credit score and income requirements.

Jumbo

A jumbo loan is made for a high-end homebuyer seeking to borrow a large amount of money. Jumbo loans usually have more stringent requirements, like bigger down payments, better credit scores, and lower ratios of debt to earnings. They also have higher interest rates compared with conventional loans.

First-Time Idaho Home Buyer

Several mortgage options are available that don’t require money down or come with down payment help, making them ideal for aspiring home buyers. Various cities and counties also offer income-based grants for first-time home buyers in Idaho and those who haven’t owned homes within the past three years.

Receive Expert Guidance on Idaho FHA and Other Loans From Summit Lending

Summit Lending is your top choice for home loan support, whether you’re considering an FHA loan or another loan option, like one for a first-time home buyer in Idaho. Whether you’re looking for a loan to complete a purchase, build a home, refinance your existing mortgage at a lower interest rate, or access your home’s equity to get cash, our home mortgage loan specialists can help you find the perfect solution for your financial needs. Contact us today!

Summit Lending has no affiliation with and has not received endorsements from the U.S. agriculture department, FHA, VA, or federal government.