New Options for Idaho Home Buyers, zero down with NO MORTGAGE INSURANCE!

Our friends at Idaho Housing and Finance Association just rolled out a new program that will give Idaho Home Buyers a better option for low down payment financing.

The Program is called the Preferred Risk Program.  It its a Fannie Mae program that will finance up to 97% of the purchase price of the home.  It doesn’t have mortgage insurance, instead the rate is slightly higher than the IHFA FHA loan program. 

The payment on a $100,000 loan would be $493 (p&I).  On a $100,000 FHA program the P&I payment would be $463 but it carried a mandatory mortgage insurance premium of $95.83. The savings would be$65.83 per month using the preferred risk program.

One other benefit the IHFA preferred risk program has it that it can be combined with IHFA’s second mortgage program, the Good Credit Rewards, to get the homeowner in the home with zero down payment.  It can also be combined with the IHFA Down Payment Closing Cost grant program for those who qualify, also creating a zero down payment financing package.

The program does require the borrowers to have a decent credit score, 660 and take their home buyer education course, Finally Home.      

We are direct underwriters for Idaho Housing and Finance Association’s programs.  I have great respect for the staff at IHFA and feel confident when placing a client with them that it will be a positive experience for my clients.

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