How To Get a Mortgage In Idaho First-Time Homebuyers
This article will cover how to get a mortgage in Idaho buying your first house in Idaho. Idaho, also known as the Gem State, continues to increase in population as more people keep moving to the state because of its beautiful scenery, mild climate, and low cost of living. You don’t want to be left behind and want a part of it, which is completely fine.
Gustan Cho Associates are mortgage brokers licensed in 48 states including Idaho with a lending network of over 210 wholesale mortgage lenders. The team at Gustan Cho Associates has a national reputation of being able to approve and close mortgage in Idaho other lenders cannot do. Over 80% of our borrowers are homebuyers who could not qualify at other mortgage companies because of the lender having overlays or because the lender did not have the mortgage loan option best suited for the borrower.
Homebuyers from all walks of life dream to realize the American dream of home ownership become a reality in Idaho. Homebuyers do not need a 20% down payment, high credit scores, and perfect credit history to qualify for a mortgage loan to buy a house in Idaho. In the following paragraphs, we will cover how to get a mortgage in Idaho for first-time homebuyers.
How To Get a Mortgage in Idaho With Bad Credit
You need to approach a lender, get a mortgage, get a house, and start your life as a homeowner in this great state. While everything sounds super easy, it’s not! For instance, getting a mortgage in Idaho with bad credit is challenging unless you get a lender with no overlays and dozens of non-QM and alternative mortgage loan options.
If you are a first-time buyer with a bad credit history, we will give you tips on how to get a mortgage in Idaho with a lender for bad credit. For homebuyers with bad credit, it can be quite an obstacle that stands in the way of your home ownership dream. Now you are wondering if there is still a way you can fulfill your dream in such a grand majestic state like Idaho. The good news is, yes, you still can fulfil your dream of home ownership in Idaho!
While you need a good credit score – among other requirements – to secure a mortgage in the Gem State, certain mortgage options are available for borrowers with bad credit. We will tell you more about this in this article, plus how you can get your first house in Idaho. But before we get to that, let us first tell you about the Gem State.
Everything You Need To Know About Buying a House in Idaho
Idaho is a U.S. state found in the Pacific Northwest region of the country. It borders the states of Wyoming and Montana to the east, Utah, and Nevada to the south, and Oregon and Washington to the west. The state also shares a small border with Canada, the province of British Columbia. Its capital and largest city are Boise. Idaho has a total land area of about 83,500 square miles, which makes it the 14th largest state by land area in the country.
The state is divided into several different climatic and geographic regions; the north of the state, also known as the Idaho Panhandle is pretty isolated, and it shares the Pacific Time Zone with Eastern Washington, with which it is closely linked; the south the state includes the Snake River Plain, which is where most people live and where most of the agriculture takes place; and southeast of the state also forms part of the Great Basin. Idaho is geographically mountainous, with several stretches of the Rocky Mountains.
The major industries in the state include agriculture, manufacturing, forestry, mining, and tourism. Also, the Idaho National Laboratory, the largest Department of Energy facility in the country, is located here. The state’s official nickname, “Gem State,” is a figurative expression referencing its natural beauty. In the next few sub-sections, we will cover some more facts how to get a mortgage in Idaho for first-time homebuyers.
What Is The Population of Idaho
The population of Idaho keeps increasing year after year because of the mass migration from other states. Idaho is becoming increasingly popular for individuals and businesses to migrate to the state due to affordable housing, great economy, clean air, majestic mountains and landscape, great economy, low cost of living, and great job opportunities.
The main reason for Idaho’s skyrocketing growth in its population is due to the mass migration of people and businesses from other high-taxed states. The state was documented to be the second fastest growing state in the United States as of fourth quarter 2022. The population of Idaho by the end of the year was at two million people according to data from the United States Census Bureau.
Homebuyers thinking of buying a home in Idaho, they may like to know about the population and the population growth of the state. Idaho’s population as of July 2021 stood at 1,900,925. White people make up 91% of the population, 1.4% are Asians, 1.3% are natives, and 0.7% are African-Americans, while other races and mixed races make up 5.5% of the population. Population growth in the state has been steadily growing year after year due to attracting many families from all over the United States. From 2010 to 2020 has increased by 17.3%, making Idaho the second fast-growing state over the last decade.
How Is The Economy of Idaho?
The economy of Idaho should be a major concern for homebuyers buying a home in Idaho, especially individuals moving to the state to call the state their home. The state has a strong economy, low cost of living, great job opportunities, conservative state government with no budget deficit, and a great education system. The household median income averages $58,915, while individual income is $28,750.
There are more job opportunities in the state than people looking for job. The great opportunities in Idaho is what is attracting new people to the state. Great job opportunities and the strong state economy is one of the major forces of the state’s population growth. Major industries in Idaho include food processing, the lumber industry, chemical industry, wood and paper industries, electronic, oil, silver and gold, minor, entertainment and tourism, real estate, and banking and finance.
Idaho state income tax rates range from 1% to 6.5%. The sales tax rate is 6%, and the property tax rate stands at 1.129% in urban areas and 0.798% in rural areas. The Gross State Product in Idaho is $78.9 billion, with a growth of about 3.3% over the last five years.
Why People Move To Idaho To Make It Their Forever Home
The housing market is booming throughout the United States. However, the housing market is stronger in Idaho than any other state in the nation. There is a lot of land in Idaho. Land is abundant and the landscape is majestic and beautiful. Air is fresh and there is no hustle bustle throughout the state.
Shopping For Your Dream Home in Idaho
Idaho has one of the most beautiful landscapes in the world. The majestic mountains, fresh air, great school system, hundreds of employment career opportunities, breathtaking national parks and tourism spots, and thousands of acres throughout the state with no congestion.
Paradise at its best. The low cost of living and affordable housing is what makes Idaho so great and Heaven on Earth.
The average median home prices in Idaho is $498,000 with the average rent being $1,800 per month. Homebuyers can buy a lot of house for the money in Idaho.
What Do You Need To Buy a House For The First Time in Idaho
The first and most important thing you first need to buy a house in Idaho for the first time is decide how to get a mortgage in Idaho so you can get qualified and get a pre-approval letter. Homebuyers need to decide how much house they can afford.
The lowest credit score required to get an FHA loan in Idaho is 500 FICO. Homebuyers with credit scores under 580 and down to 500 FICO are eligible for an FHA loan in Idaho with a 10% down payment. Gustan Cho Associates are mortgage brokers licensed in 48 states including Idaho with a lending network of 210 wholesale mortgage lenders.
Need to meet the credit and income requirements for a mortgage. Consult with a mortgage lender licensed in the state of Idaho. Due research on which mortgage loan options is best suited for them. Decide which area in the state they would like to purchase their home.
How To Get a Mortgage in Idaho To Shop For a House
Once you have decided you will become a homeowner in Idaho, it is time to qualify and get pre-approved for a mortgage.
The most important step in the homebuying and mortgage approval process is getting pre-approved. A solid pre-approval is the most important step of the overall homebuying process when buying a home in Idaho.
One of the main reasons for stress during the mortgage loan process is because the loan officer did not issue a sold pre-approval. Not being issued a solid pre-approval is the main reason for a mortgage loan denial.
Mortgage Options In Idaho For Borrowers With Bad Credit
A good credit score is one of the many requirements for obtaining a mortgage in Idaho. Since many people have low credit scores and others have none, this requirement is enough to lock many people out of securing mortgages.
Financial institutions recently started offering mortgage options with relaxed credit score requirements to enable buyers with a not-so-perfect credit score to purchase homes.
When a credit score limit for traditional mortgages in Idaho stands at 620 FICO, the mortgage options we are talking about here can accept a credit score as low as 500 FICO. Here are some of these mortgage options:
How To Get Approved For a Non-QM Loan In Idaho
Non-QM mortgages – these are mortgages that were specially designed for self-employed individuals since they don’t have a consistent income flow like employed individuals, which is one of the requirements for obtaining a mortgage in the U.S.
Non-QM loans are not government-backed, which makes them very flexible in terms of their requirements. Payment methods make them a favorite to many people.
Non-QM loans don’t have a strict credit score requirement, as even with a score of 500 FICO, you can qualify for a mortgage. But you will need a down payment of at least 20% to qualify, and the interest might be a little bit more than traditional mortgages. There are several Non-QMs available in Idaho, which you can choose from, including Jumbo loans, the biggest mortgage that could help you finance a massive property.
How To Get an FHA Loan In Idaho
FHA loans are the other options and the best traditional government-backed mortgage for borrowers with bad credit. Borrowers with a low credit score of up to 500 can qualify.
Gustan Cho Associates has no lender overlays on FHA loans in Idaho. Homebuyers with credit scores down to 500 FICO are eligible to qualify for an FHA loan in Idaho.
Even those who had declared bankruptcy would qualify, but that’s after meeting the waiting period requirements. To qualify for a 3.5% down payment home purchase in Idaho with an FHA loan, you will need a 580 credit score. To qualify for an FHA loan in Idaho with under 580 credit score and down to a 500 FICO, you will need a 10% down payment and meet other minimum HUD agency guidelines and requirements on FHA loans.
How To Get Approved For a VA Loan In Idaho
VA loans in Idaho has no minimum credit score requirements and no maximum debt-to-income ratio. VA loans in Idaho is a mortgage loan option for homebuyers in Idaho with a valid certificate of eligibility.
VA loan mortgage option was introduced by the Department of Veterans Affairs and was aimed at helping military veterans, active duty, and their surviving spouses purchase homes for their families. These loans don’t have a minimum credit score requirement.
These are the main options available for borrowers with bad credit in Idaho. But what if you still need to get a credit score? You may still qualify for a mortgage, but it must be manually underwritten. FHA and VA loans can be manually underwritten so that you can qualify for these.
Tips For Buying a Home In Idaho
Now that you have seen that you can qualify for a mortgage, now we can guide you on how you can purchase your first home in the Gem State. But before we get to that, here is a brief overview of the property market in the state. The property market in Idaho, especially Boise, has been growing exponentially in the last couple of years.
There are no signs of it slowing any time soon. Homes stay on the market for as little as 28 days. Homes sell fast throughout the state. What this tells homebuyers is how healthy the housing market really is. Also, considering the culture, job opportunities, arts and music, safe cities, and natural beauty, you would see why many people are choosing to settle in this state.
Places like Coeur d’Alene’, Twin Falls, and areas around Boise have some new property developments going on, which contributes positively to the state’s property sector. With that said, here are some top tips to keep in mind when buying your first home.
Buying Versus Renting In Idaho
Maybe before buying a house in Idaho, you may want to visit several areas and rent before you make a commitment. As a renter, you are not committed in one area for a long time.
You can stay at multiple places by renting and decide where in the state you want to buy a house and set your roots. What we mean by this is that if you can commit to staying in one place for a longer time, then you may want to rent many areas throughout the state rather than buy the first place you land in the state. At least for the time being.
The transaction costs you incur while buying a house may not be worth it. You might end up losing money if you buy a house and then decide you do not like the area. So, the first thing you should do when you want to invest in Idaho is to figure out whether you will be committed to one place for a long time or just want to sample the new area first.
Advice on How To Get a Mortgage in Idaho With Bad Credit
It would help if you got a mortgage pre-approval first – this is something you should absolutely do before you even begin looking for houses. The truth is, trying to look for a home without a mortgage pre-approval is like shopping in a high-end store without knowing the amount in your bank account.
A mortgage pre-approval is a must. After all, sellers in Idaho want to see buyers who have already been preapproved know they are not wasting their time. Also, you will be able to search for homes that are within your price range, and this will also give you an edge when bidding.
Most importantly, if you have bad credit, you will want to know and be sure that you can qualify for a mortgage, if any barriers may be on your way, and how you can fix them.
Hiring a Buyer’s Real Estate Agent in Idaho
Get professional help – even though you might get unprecedented access to home listings on the internet, if you are new to the market and don’t know to navigate Idaho’s property market, you’d better get a local property agent to help you. Make sure that the agent has your best interest at heart and will give you a few strategies to increase your chances.
Look for a home in a good school district – school districts in Idaho tend to be a priority in many home buyers’ lists. So, even if you don’t have school-going kids, it’s good to look for houses in these areas. The reason is, if you ever want to sell that house sometime in the future, the location itself will have increased its value significantly, as many buyers will want to buy it. In Idaho, consider McCall-Donnelly Joint School District, Lake Pend Oreille School District, and the independent school District in Boise. These areas have excellent properties, and at the same time, they are the best school districts in the state.
Other places to look for property in Idaho – other than in school districts, there are a couple of other cities where you may want to consider looking for a home. They include the following:
How To Get a Mortgage in Boise, Idaho
Buying Your Home in Boise, Idaho: Boise, Idaho is the largest city in Idaho. Boise has constantly been growing for years now. Boise, Idaho, being home to the biggest universities in the state, you can understand why. This city appeals to many, including students and families, and that has greatly contributed to the growth of its real estate sector. If you are looking to invest in rentals, you will be able to take advantage of the high number of students coming to the city every year.
Buying a House in Meridian, Idaho
Meridian – if you don’t want the hustle and bustle in the city, this is a great suburb you should look into. Many people own homes, making this neighborhood one of the safest in all of Idaho. And if you are working in the city, it it’s just a 20-minute drive.
Buying a House in West Boise, Idaho
West Boise – this town is located between I84 and Hwy26 and goes as far as Meridian. It’s beyond the hustle and bustle of Boise downtown, and it has some of the most affordable properties in the city. This town is centrally located between Meridian, Boise downtown, and Eagle.
Buying a House in Central Bench, Idaho
Central Bench – this town features lots of local amenities, high income per capita, and low cost of living, all of which combined make it super appealing to property investors. You should also check out North End, East Boise, and Nampa.
How To Get a Mortgage in Idaho Avoiding Stress During Homebuying Process
Home inspection – you must conduct inspections to ensure that the home is in good condition before paying for it. You can have an expert do it, as it would be easier for them to spot even the tiniest issues with the property so that you will be able to account for them when negotiating for the final price.
Gustan Cho Associates empowered by NEXA Mortgage, LLC are mortgage brokers licensed in 48 states including Idaho with a national reputation of being able to qualify and approve borrowers other lenders cannot do in Idaho. The team at Gustan Cho Associates are experts in helping borrowers with credit scores down to 500 FICO. With a lending network of over 210 wholesale lenders, there is not a mortgage loan program that is on the marketplace you will not see at Gustan Cho Associates.
If you have always wanted to move and settle in the Gem State but always assumed it might never happen since you have bad credit, you now know that it is possible to fulfill your dream. With mortgage options such Non-QMs, FHAs, and VAs, it is easier than you had imagined. Get in touch with a mortgage broker today and commence your journey. If you need more information about this guide on how to geta mortgage in Idaho, or need to qualify and get pre-approved for a mortgage to buy a home in Idaho, please contact us at Gustan Cho Associates at 262-716-8151. Text us for a faster response. You can email us at gcho@gustancho.com. The team at Gustan Cho Associates is available seven days a week, evenings, weekends, and holidays.
