It is still possible to buy a home in Boise, ID with no money down! Zero down programs in Idaho were very popular a few years ago before the downfall of the mortgage and housing markets. Most people think they have all but disappeared but if you know where to look, they are still available and offer attractive interest rates. There are income and credit score restrictions. It is important to talk to a lender who is well versed in these programs to determine your individual eligibility.
Here are 4 great ways to buy a home in Boise with 100% financing. The first 2 are Idaho Housing Financing Authority and can be used in conjunction with FHA Loan Programs. The last 2 are U.S. Government Programs that are available to use for purchasing Idaho properties.
1. IHFA Good Credit Reward Second Mortgage: Borrowers must have at least a 680 FICO score to qualify and they can borrow up to 3.5%, which covers their minimum down payment. The loan is paid back over 30 years so the payment is small.
2. IHFA Home Grant: The buyer can get up to 3.5% of the purchase price toward down payment to cover the minimum down payment on an FHA loan (not to exceed $8000). It is really a subsidy lien. The Home Grant must be paid back when the borrower sells the property. There is no payment and no interest is accrued on the grant amount.
Both of the above IHFA programs have income limits and the buyer must bring in $500 at closing (can be applied to closing costs).
3. Veteran Affairs (VA) Loan: VA loans are a great benefit to service members. No mortgage insurance is required and can be used over and over but only allows for only one VA loan at a time. There is variable VA funding fee that is added to the amount of the loan.
4. Rural Development (RD) Loan:They are not currently available on Boise, Meridian, Nampa, or Caldwell properties but are available in some of the smaller towns just outside Boise. They include Kuna, Star, and Middleton, which are all within 30 miles of downtown Boise. They do not have monthly mortgage insurance and flexible credit requirements. The funding and eligibility changes frequently so you must check to see if your property is a candidate.
There are painless ways to buy real estate in Idaho without any money down. It is just important you know where to look and talk to a lender that can educate you on the pros and cons and the eligibility requirements of each of these programs.