There are still loan options available for those in the home buying market.  Although the programs have changed a lot over the past several years, financing is not a difficult as some rumors may imply.  Among the most popular loan options currently available are the FHA Loan, Rural Development Loan (RD or USDA) and the Idaho Housing and Finance Loan Program (IHFA).  The appeal with each of these loans versus the conventional loan is the low down payment or in the case of the RD loan and IHFA loan nothing down.

The Rural Development loan has been very popular in the Rexburg, Rigby and St Anthony markets.  As implied by the name, it is only available in Rural markets.  With the growth of Rexburg the population has put it in jeopardy of losing its status of being able to utilize this popular 100% loan program which has helped to regain some market momentum in the past couple years.  Originally we were told that the loan product would not be available after Oct. 1st of 2012, then they extended that through the end of March 2013.  This loan is only guaranteed by the United States Department of Agricuture (USDA), another product is available for low income families which is subsidized by the USDA.  You can obtain an RD guaranteed loan through most lending institutions versus working directly with USDA for the subsidized loan.  We are hoping that legislature makes some changes to their policies which would allow Rexburg home buyers to continue using this type of loan.  If they change goes into effect in April of 2013 we are told that it will only affect those properties within the city limits of Rexburg but no official map as been drawn.

The FHA loan is still available and offers a loan to value ratio of 96.5%.  This option is popular with buyers who may need a co-signor who wont be occupying the property.  The RD loan will allow a co-signor but all properties on the loan must be occupying the property.  The FHA program will allow buyers to obtain a loan on properties up to 4 units meaning a buyer could purchase a 4-plex, occupy 1 of the units and rent out the other 3 and only put down 3.5%.

Idaho Housing and Finance (IHFA) has a couple loan programs which cater to the first time home buyer or those who have not owned a home for 3 years.  They have a 97% loan program where you can borrow the additional 3% from them which equals another 100% loan option. 

The interest rates are still incredibly low.  Don't wait to buy in the future when rates are most likely to be higher, take advantage of the low rates and great home prices today.  Please don't hesitate to contact me if you have any further questions or need a recommendation of a good lender in the area.