The Gem State holds some 72 different precious and semi-precious gemstones, yet if you’re an aspiring homeowner in Idaho, deciding on the right mortgage option can feel like finding a diamond in the rough. Thankfully, the FHA loan program can help simplify the process of buying a home for Idaho residents. Keep reading to find out what FHA loans in Idaho entail, and if an FHA loan is the right mortgage option for you.
Why choose an FHA Loan in Idaho
With crime rates being far below the national average, Idaho residents can feel at ease when purchasing a home. Many Idahoans are choosing FHA loan, so many in fact, that as of April 2019 the total value of FHA loans in the state was nearly $88 million!
Benefits of FHA Loans in ID
- FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
- FHA mortgage rates are typically lower than conventional mortgage rates.
- FHA down payment and credit score requirements are typically lower than conventional loans
- Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
- FHA loans are assumable
FHA Loan Limits in Idaho
The goal of the FHA loan program is to ensure everyone can afford a home, regardless of the area they live in. This means the maximum loan limit varies from location to location, and is adjusted yearly.
In Idaho, the baseline limit of $314,827 currently applies, but in places like Hailey and Jackson the loan limit is much higher due to the relatively high cost of real estate in these areas. See the link below to see a full list of FHA loan limits in Idaho for 2019.
Are You Eligible for an FHA Loan ID?
You may be eligible for an FHA loan, if you:
- Have 2 years of steady employment, preferably with the same employer.
- Have had steady income (or increasing income) in the past two years.
- Have had less than two 30 day periods of late payments on your credit report.
- Have declared bankruptcy no less than two years ago and have maintained good credit since.
- Have not been a party in a foreclosure for at least three years and have maintained good credit since.
- Anticipate your mortgage payment will be equal to or less than 30% of your gross income.
What Do You Need to Apply for an FHA Loan in ID?
Buyers must be able to provide the following information and documents as requested by lenders:
- The addresses of all your residences over the past two years.
- The names of your employers over the past two years.
- W2's for the past two years and current paycheck stubs.
- Your current gross monthly salary.
- Your Social Security Number.
- Names, addresses, and account numbers with balances on all checking and savings accounts.
- Addresses and loan information of any other real estate you owned.
- Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
- Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.
Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.