FHA Rules Good News for More Idaho Families
An FHA loan is a federal assistance mortgage loan, insured by the Federal Housing Administration. To promote home ownership, these loans require a small down payment and offer the most choices for refinancing, especially with cash out.
Recent reforms have addressed current housing and mortgage lending needs by loosening some underwriting standards and raising current restrictive loan limits.
New FHA loan highlights:
- Higher loan limits (these limits vary by state, so loan seekers in Boise, the Treasure Valley, or any city in Idaho should consult a licensed FHA loan officer).
- More expensive Idaho homes can be refinanced or purchased with low-rate FHA loans.
- Buyers in the Treasure Valley and beyond may qualify even with a lower credit score or lower income.
- Cash-out refinance up to 95% of home value (for paying off higher-interest debts that don’t offer a tax incentive).
- Home refinancing, up to 97%, to get a lower rate and monthly payment. For example a Boise homeowner could refinance up to $194,000 of their $200,000 Boise home.
FHA loans are an excellent choice for first-time Idaho home buyers:
- Only 3% down payment required
- Entire down payment can be a gift from a relative or a non-profit
- Seller concessions, up to 6%, are allowed.
Another benefits of FHA loans:
- Never a pre-payment penalty
- FHA loans are assumable
- Possible leniency during financial hard times.
FHA loans aren’t for everyone. While a borrowers’ credit does not have to be great, it does need to be decent. There are also qualifications that need to be met regarding debt-to-income ratio, and other limitations apply. Consult a qualified Idaho FHA lender for complete details.
The new FHA rules are working, resulting in more FHA-based new home purchases and refinances in Boise, Meridian, Eagle, Nampa, Caldwell, and many other cities across Idaho. These trends are expected to continue throughout 2008. However, the new higher FHA loan limits are temporary and are set to expire at the end of 2008.
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Written by Lisa Kratz and Mike Little of www.myIdahoHomeLoan.com
Apex Mortgage | Meridian, Idaho | (208) 888-9251
2 Comments to “FHA Rules Good News for More Idaho Families”
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On June 20th, 2008 at 8:18 am
[…] low down payments (3%), allowed gift money, and overall credit is reviewed rather than just FICO. Idaho lender Lisa Kratz is also pleased with FHA’s new rules, but warns, FHA loans aren’t for everyone. While a borrowers’ credit does not have to be great, […]
On July 3rd, 2008 at 10:42 am
[…] a previous article, we wrote about the benefits of going with an FHA home loan or refinance. But it gets even better! Let’s say you’re already in an FHA mortgage, but you want to take […]