Idaho Finance and Housing Association has some great options available for Idahoans who would like to see their dream of homeownership a reality.  Through IdaMortgage, some buyers can qualify for 100% financing with no Mortgage Insurance and a low interest rate.  See below (taken directly off of IdaMortgage.com):

Preferred Risk Sharing Loan – No MI
No first-time homebuyer requirement
Cannot currently own other real estate
Check the income limits chart for qualifications
No sales price limits
No private mortgage insurance required
No minimum borrower contribution
Finally Home!® Homebuyer Education is required
May qualify for up to $2,000 tax credit every year

This is just one of the programs through IHFA that is helping Idaho buyers realize their dream of owning a home.  There are additional programs for first time homebuyers, rehabilitation loans and closing cost and down payment assistance programs.

A good place to start is to talk to a lender about these programs.  Here are three lenders that can help:

For more information about programs through Idaho Housing and Finance Association visit:

http://www.ihfa.org/

 

 

Advertisements

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac  to increase the guarantee fee charged for all new mortgages financed on or after April 1, 2012. What this mean is that rates on these agency loans will start to reflect higher costs in April.  The rate increase will affect only Fannie Mae and Freddie Mac products at this time.

In addition to this increase, FHA monthly mortgage insurance premium will be going from 1.15% to 1.25% to help offset the temporary tax extension of two months.

If you are looking at homes, now is a great time to put in an offer before some of these increases are put into place.   Contact your lender today to find out how these increases can affect you.

Let me know if you need a lender name.

 

Many people look at homes that are short sale or bank owned and are worried about having the money to make some of the repairs to the home after purchase.  There may be a solution for you with the 203K streamlined rehab loan.

The 203K Streamlined loan follows FHA guidelines and gives potential homeowners an affordable solution to purchasing a home that requires from $1000 to $35,000 in repairs by financing the cost of the repairs.  Here is an idea of items that can be repaired with the 203k streamline loan:

  • Repair gutters, and downspouts.
  • Replace Roof (if it’s a tear off)
  • Weatherize (insulation, windows, doors, weather-stripping)
  • Interior and Exterior Painting
  • Repair or Replace existing heating, ventilation and air conditioning systems
  • Minor remodeling (no structural repairs)
  • Repair or replace flooring
  • Repair or replace plumbing and electrical systems

So if you are looking at homes that need repair, don’t rule a home out just because it needs some repairs that may be out of your budget after close.  Talk to your lender about the 203K Streamline loan.  It could be a great option for you.

If you don’t have a lender, email me!  I can give you a name.

FHA loan limits in Fall of 2011 and bounced around a bit.  FHA announced in September the FHA loan limit would be $271,050 through December 31, 2012.  Shortly after that (early December) they decided that they would revert to the maximum loan limits previously in effect to October 1, 2011, which is $303,750 in Ada and Canyon County.  So for FHA loans with Case Numbers Assigned on or after November 18, 2011, FHA has reverted to the maximum loan limits previously in effect to October 1, 2011 ($303,750).  If you had a case number assigned between October 1, 2011 and November 18, 2011 they must use the lower limit of $271,050.

FHA loans are utilized by many buyers because they allow a lower credit score plus a lower percent down payment compared with a conventional loan.  If you qualify for a FHA loan, you can pay as little as 3.5% down on a home.

FHA allows a score as low as 580 but because FHA doesn’t actually give out the loan themselves (they are given through approved FHA lenders), most lenders require a minimum score of 620.  Sometimes there are exceptions too.  You should talk to your lender for more information.

FHA Website:  http://www.fha.com/fha_loan_requirements.cfm

Please let me know if you need the name of a knowledgeable lender.  I have several names I could give to you.

On November 21, 2011 I wrote a blog on the reduction of the VA Funding fee that went into effect on November 18, 2011.  The Department of Veteran Affairs issued a statement on November 22, rescinding that loan reduction.  See below:

“Purpose. On November 21, 2011, the President signed H.R. 674. Section 265 of the law raises funding fees to the pre-November 18, 2011 levels. The fees specified in Section 265 are valid through September 30, 2016”.

So the reduction in funding fees lasted only four days before they were brought back to the pre-November 18 levels. 

Here is a link to the circular:  http://www.benefits.va.gov/homeloans/circulars/26_11_19.pdf

Mortgage programs are changing constantly so be sure you have a very good loan officer to advise you on changes in programs.  If you need some names of excellent lenders, let me know and I will be happy to give you input. 

Thanks to Julie Gould at Propect Mortgage for this timely information on VA funding fees. 

After an initial delay, the reduction in VA funding fees by approximately .50-.75% will go into effect with all loans closed after 11/18.  This is good news for veteran borrowers!
 

VA Funding Fee Matrix – Purchases – Oct. 6 through Nov. 17, 2011

Type of Veteran  

Down Payment  

Percentage for  
First time Use
 

Percentage for  
Subsequent Use
 

Regular Military   Less than 5%  
5% or more (up to 10%)  
10% or more  

2.15%  
1.50%  
1.25%  

3.3%*  
1.50%  
1.25%  

Reserves/  
National Guard  
Less than 5% 
5% or more (up to 10%)  
10% or more  

2.4%  
1.75%  
1.5%  

3.3%*  
1.75%  
1.5%  

   VA Funding Fee Matrix – Cash Out Refinancings – Oct. 6 through Nov. 17, 2011

Type of Veteran  

Percentage for First  
Time Use
 

Percentage for  
Subsequent Use
 

Regular Military  

2.15%  

3.3%*  

Reserves/National Guard  

2.4%  

3.3%*  

  • ·         Loans closed on or after November 18, 2011

Funding fees for loans closed on or after November 18, 2011 will be reduced as shown as follows :

Type of Veteran  

Down Payment  

Percentage for  
First time Use
 

Percentage for  
Subsequent Use
 

Regular Military   Less than 5%  
5% or more (up to 10%)  
10% or more  

1.40%
.75%
.50%

2.80%

.75%

.50%  

Reserves/  
National Guard  
Less than 5% 
5% or more (up to 10%)  
10% or more  

1.65%  
1.00%  
.75%

2.80%

1.00%

.75%

  • Funding fees for other loans
    Funding fees for Interest Rate Reduction Refinancing Loans (IRRRLs) and Assumptions will not change. They will remain at .50%.