No matter how many different people purchase a home in Boise, or surrounding areas in Idaho, their experiences can be vastly different. That’s because a home purchase boils down to more than the area you choose and the value the home has. Home loans are very subjective, which is why good loan officers take the time to understand your requirements before offering you a solution. Below is a look at some popular loan options you can choose from to finance your home in Boise.
Adjustable-rate Loan
An adjustable-rate loan features a fixed interest rate period, which is succeeded by an adjustable period that allows for a rate change. Typically, the first few years of the loan feature the lowest payments, but the figures depend on current market conditions. Many people who opt for adjustable-rate loans choose them because they only plan to live in a home for a few years before seeking out refinancing.
The fixed-rate loan is one of the most popular types, and the way it functions is evident from its name. The interest rates remain constant throughout the loan’s tenure. Additionally, the principal and interest on your payment remain the same. Fixed-rate loans are typically sought after for long-term investments and for people who appreciate consistency in repayment.
Before considering a jumbo loan, you should know that the requirements tend to be challenging, and it comes with higher interest. However, if you are a high-income earner with good credit, it could be the perfect chance for you to own that higher-priced home that you’ve had your eye on. If you want and can afford a loan that exceeds conforming limits, it can be a good option.
The VA loan is a love letter to eligible veterans who have an interest in homeownership. There are no limits with full entitlement, but conforming limits apply to those with lesser entitlement margins. No mortgage insurance is ever required, nor is a down payment. However, there are downsides since a funding fee must be paid, and the veterans are responsible for prepaid items and closing costs. Additionally, a VA loan may only be taken for primary residences.
If you’re looking for an attractive home ownership option in a rural area, the USDA specifically developed this loan for that purpose. First-time buyers can access this funding type with terms that include little to no down payments, closing costs that allow financing into the loan, and lower interest rates. Income restrictions tend to apply here, and if you don’t plan to occupy the home as the owner, you do not qualify. it’s recommended that you inquire about designated rural areas since your home purchase must be in one of them, or this loan type cannot be used.
First-time homeowners are huge fans of this loan type since it allows for looser qualifying requirements and smaller down payments. While it may be easier to get your hands on one, all property standards must be met, which tends to disqualify houses that fall under the “fixer-upper” category. Additionally, borrower-paid mortgage insurance is mandated.
For Native Americans living on or off Tribal land. Little money down and low mortgage insurance. Loan limits apply. Can use per Capita income to qualify.