5 Most Common Loan Types
Listed below are the 5 most common loan types that are used to finance properties in the greater Boise area and surrounding communities of Eagle, Meridian, Nampa, and Caldwell to name a few.
Conventional – A conventional loan is a mortgage loan that is not insured or guaranteed by a governmental agency. A conventional loan can be a fixed or adjustable interest rate loan. Conforming conventional loans follow the guidelines set by Fannie Mae and Freddie Mac. Non-conforming loans are also conventional loans, but do not follow the conforming guidelines.
FHA – An FHA loan is a mortgage loan that is insured by the Federal Housing Administration. If the borrower cannot repay the loan, the government pays the lender for any losses it may incur. FHA loans require a minimum down payment of 3.5% of the sales price. FHA loans require mortgage insurance. There is an Upfront Mortgage Insurance that is financed into the loan and a Monthly Mortgage Insurance that is included in the monthly payment.
VA – A Veteran’s Administration loan is only available to veterans that have served in the US Military and in some cases, their surviving spouses. There is no down payment required for this loan and the loan is guaranteed by the government. A VA loan has a Guarantee Fee, this fee can be paid upfront or financed into the loan.
RD – Rural Development is a mortgage loan for home buyers wanting to buy in eligible areas designated by Rural Development. We try to utilize this type of loan when someone is looking to purchase in Middleton, Kuna, Wilder, Homedale, Marsing, Melba, etc. To check property eligibility click here. RD loans do not require a down payment. There is a guarantee fee that is financed into the loan. This loan is also guaranteed by the government.
IHFA – Idaho Housing and Finance Association is an organization that provides funding for affordable housing opportunities in Idaho. They offer reduced interest rates and down payment assistance to help Idahoans buy primary residences in Idaho. Their loan types are Conventional, FHA, VA or RD.
