Idaho FHA Loans: What You Need to Know

The FHA loan program strives to open the door to homeownership to homebuyers who may not qualify for a conventional loan. Homebuyers can obtain this type of loan through an FHA-approved lender like Jaro Team.

How are Idaho FHA loan limits determined?

FHA loan limits are the highest sums that the FHA will guarantee for various property types. They vary by county, adjusted annually based on changes in average U.S. home prices and shaped by the conforming loan limits established by Fannie Mae and Freddie Mac.

What are the requirements to obtain an FHA loan in Idaho?

For those considering obtaining an Idaho FHA loan, there are several key points to be aware of. For an FHA loan, the standard minimum down payment is usually 3.5% of the buying price. However, if your credit score isn’t as high, this requirement could rise to 10%.

Regarding the debt-to-income (DTI) ratio, it generally needs to be 43% or less for FHA loans, though exceptions might be made in certain circumstances, such as strong credit history or additional savings.

The loan must be used on a primary residence and can’t be used for investment properties or vacation homes.

While the main features of FHA loans remain consistent across the country, some differences can arise based on local factors and individual lender practices. FHA lenders in Idaho may have their own requirements or processes for FHA loans, which could slightly differ from those in other states.

Things to consider regarding FHA loans

While FHA loans can be advantageous for many homebuyers, here are a few things to take note before choosing this as your mortgage option:

Mortgage Insurance Premiums (MIP): FHA loans require mortgage insurance. Borrowers pay this at closing. Plus, an annual premium is charged, split into monthly installments and incorporated into your mortgage payment.
Property Standards: Properties bought using an FHA loan are required to adhere to specific safety, security, and structural integrity (soundness) criteria. If a home doesn’t meet these criteria, it may not qualify for an FHA loan, or the seller or buyer may need to make repairs before the sale can proceed.

Jaro Team is here to help you decide if an Idaho FHA loan is right for you

A home loan is a financial commitment for years to come. It’s important to weigh the benefits of all of your options before choosing the one that is right for you.

Local real estate market conditions might influence your decision between an FHA loan and other types of mortgages. For instance, the cost of living and average home prices in your specific area in Idaho could impact how much you choose to borrow. In Ada County, Boise City prices may differ than that of Twin Falls County.

While an FHA mortgage may be a good choice for first-time homebuyers due to the lower down payment requirement compared to conventional loans, there are also various down payment assistance programs available in Idaho, which can help make buying a home more affordable.

Jaro Team can help you make an informed decision on what home loan program meets your goals. We pride ourselves in the knowledge and expertise of the numerous loan solutions in the market and place a high priority on ensuring that our clients fully understand each step of the mortgage loan process, from application through to closing. Contact us today to discuss if an FHA loan is right for you.

Source: https://www.hud.gov/buying/loans

https://entp.hud.gov/idapp/html/hicostlook.cfm

Premier Mortgage Resources, LLC is not affiliated with or an agency of the federal government. All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Underwriting approval required. Any programs shown do not demonstrate all options or pricing structures. Any rates, terms, programs, and underwriting policies are subject to change without notice.

Factors to Consider When Buying Investment Properties in Idaho

The process of buying an investment property is much more nuanced than purchasing a primary residence and requires careful consideration. There are many factors that can affect the success of your real estate investments. This blog post explores some of them as you pursue this endeavor as a real estate investor.

Investment Purpose

Defining your investment goals is a critical step in the process of buying an investment property. This essentially means determining what you hope to achieve with the property. Here are several common investment objectives you might consider:

Long-Term Appreciation: Some investors purchase residential property in areas that they expect real estate to appreciate with time. They plan to hold onto these properties for many years, allowing them to increase in value before selling for a profit.
Rental Property: Other investors look for properties they can rent out to generate steady monthly income. The goal here is often to cover the mortgage and other expenses, with any additional rental income serving as profit.
Flipping Properties: This entails purchasing a property, enhancing its value through renovations, and subsequently selling it for a higher price. The goal here is to make a quick profit, but it requires a good understanding of renovation costs and real estate market trends.
Diversification: Real estate can be a means to vary an investment portfolio. If other investments like a real estate investment trust are underperforming or the stock market is volatile, a steady real estate investment can offer stability.

By clearly defining your investment goals, you can make more informed decisions about what type of property to buy, where to buy it, and how much to spend. It also helps you gauge the level of risk you’re willing to take on and guides your strategy for managing the property. Bear in mind, your investment aspirations should work in conjunction with your financial strategy and long-term goals.

Down Payment

The down payment for an investment property is typically higher than that for a primary residence. While you can buy a home to live in with as little as 3% down (or even 0% in some cases), the minimum down payment for an investment property is often around 15-25%.

This difference is due to the perceived risk associated with investment properties. Typically, lenders perceive loans for investment purposes to carry more risk compared to those for primary residences. Investors may be more likely to default on their payments if the investment doesn’t go as planned. To offset this risk, lenders require a larger upfront investment.

Another factor is mortgage insurance. For a primary residence, if your down payment is less than 20%, you generally have the option to buy mortgage insurance. This safeguards the lender in case you fail to meet your loan obligations. However, mortgage insurance is typically not available for investment properties, hence the need for a larger down payment.

It’s also worth noting that the exact down payment requirement can vary depending on several factors, including the lender’s policies, the number of units in the property, and your creditworthiness. For instance, if you’re buying a multi-unit investment property, you may be required to put down 25% or more.

If you hold substantial equity in your primary home or another investment property, you can leverage it as a source of financing to generate your down payment.

Location

The property’s location is a paramount factor that affects its value and attractiveness. Among the various aspects of location, proximity to good schools and local amenities are particularly important.

Proximity to Good Schools

For families with children, the caliber of nearby schools is frequently of high priority when selecting a residence. Real estate appreciates more often than not in top-rated school districts. Even if you’re renting out the property, tenants with children will likely be willing to pay a premium to live in a good school district. Additionally, properties in reputable school districts often retain their value well, even in a downturn.

Access to Local Amenities

Close proximity to amenities like shopping centers, parks, public transportation, restaurants, and healthcare facilities also enhances a property’s appeal. Such amenities can notably enhance the living standards of inhabitants, thereby increasing the appeal of properties to prospective buyers or tenants. For instance, rental properties near a grocery store or a popular dining precinct can attract those who value convenience and lifestyle amenities. Likewise, properties in close proximity to parks or recreational centers might attract individuals who love the outdoors.

In essence, the closer a property is to key amenities and reputable schools, the more likely it is to attract potential tenants or buyers, thereby increasing its value and profitability as an investment. It’s important to research and understand the unique selling points of each property’s location when assessing its potential as an investment.

The local crime rate

The local crime rate is a significant factor that potential tenants or buyers take into consideration when choosing a property. Areas with high crime rates can be less desirable due to concerns about safety and security, which can directly impact the marketability of your investment property.

Safety Concerns: If a neighborhood is known for frequent criminal activities, it may deter people from wanting to live there, no matter how attractive the property might be. Safety is a top priority for most individuals and families, so a high crime rate can significantly reduce the pool of potential renters or buyers.
Property Value: High crime rates can also negatively affect property values. In areas with ongoing issues related to crime, real estate prices may stagnate or even decrease over time. This could affect the profit from your investment should you sell it at a later date.
Insurance Rates: Crime rates can influence the cost of insurance. Properties in neighborhoods with high crime rates often face higher insurance premiums, which can eat into your profits as a landlord.
Tenant Turnover: Higher crime rates can lead to increased tenant turnover, which can result in more vacant periods and additional costs associated with finding new tenants.

While it’s important to consider crime rates when purchasing an investment property, it’s also worth noting that neighborhoods can change over time. Areas once considered high-crime may undergo revitalization efforts, leading to improved safety and increased property values. Thus, investing in such areas could potentially be financially beneficial with time. However, this entails a greater level of risk and necessitates thorough research and consideration.

Job market conditions

The job market in a particular area is a vital element to take into account in real estate investing. A strong job market can influence the demand for housing, affecting both rental and property values. Here’s how:

Attracting Tenants/Buyers: Areas with a robust job market tend to attract more people due to employment opportunities. This influx of workers often leads to an increased demand for housing, which can enhance the rental prospects of your property. If you’re planning to sell, a strong job market can also increase the pool of potential buyers.
Stable Rental Income: If the area has a healthy job market, tenants are more likely to have stable incomes, making them more reliable in terms of paying rent on time. This stability can lead to less turnover and more consistent rental income.

However, it’s essential to keep in mind that job markets can shift over time due to various factors like economic recessions, industry trends, and changes in business climates. Therefore, while a robust job market is a positive sign for real estate investors, it’s crucial to stay informed about potential changes that could impact the area’s employment landscape.

Rental landscape

Understanding the rental landscape is crucial to prosperous property investing. It can help you identify areas with strong rental demand, high occupancy rates, and favorable rent prices.

Vacancies: The vacancy rate in a particular area can give you a sense of the rental market’s health. High vacancy rates could indicate a lack of demand, which might mean you’ll have trouble finding tenants or may need to lower your rental price to attract them. On the other hand, low vacancy rates often suggest strong demand, potentially allowing you to charge higher rent and reduce the time your property sits empty between tenants.
Rent Prices: The prevailing rent prices in an area directly impact your potential income from an investment property. If the average rent in the area covers your mortgage payments, property taxes, insurance, maintenance, and other expenses, with some left over for profit, the investment could be worthwhile. However, if rent prices are too low to cover costs or provide a reasonable return, the investment might not be financially sound.

Condition of the property

The condition of a property plays a pivotal role in determining its value, appeal to potential tenants or buyers, and the associated maintenance costs.

Maintenance Costs: A property in poor condition may require significant upfront repair work and ongoing maintenance, which can add substantial costs. These can include everything from minor repairs like fixing leaks or painting walls, to major renovations like replacing the roof or updating an outdated kitchen. Such costs need to be factored into your budget as they can significantly impact the profitability of your investment.
Rental or Sale Price: The condition of a property can also influence the rental price you can demand or the selling price you can recieve. A well-maintained property can command higher rents or sale prices as it is more appealing to renters or buyers. They are often willing to pay a premium for properties that are move-in ready and require little to no immediate work.

Budget/Costs

Investing in a property involves multiple costs that must be considered in your fiscal strategy. Here are some of the common costs associated with an investment property:

Purchase Costs: These real estate transaction costs include the purchase price of the property, closing costs such as legal fees and stamp duty, appraisal fees, and inspection fees.
Mortgage Payments: If you’re financing your investment with a mortgage, you’ll have regular payments that include both principal and mortgage interest.
Property Taxes: These are usually paid on an annual or semi-annual basis to your local government and can significantly differ based on the location and worth of the property.
Insurance: This includes homeowners insurance to cover potential damages to the property, and possibly additional coverage like flood or earthquake insurance, depending on the location of the property.
Maintenance and Repairs: Routine upkeep is essential to maintain the property in prime state and averts the development of more severe problems. Additionally, you’ll need to allocate funds for unanticipated repair costs.
Management Fees: If you hire a property management company to handle tenant relations and property maintenance, you’ll need to pay them a percentage of the rental income.
Marketing Costs: These are the costs associated with advertising your property to potential tenants, which could include professional photography, listing fees, and more.
Utility Bills: Depending on the terms of your lease, you may be responsible for paying certain utility bills.
HOA Fees: If your property is part of a homeowners association, regular fees for the upkeep of communal areas and facilities will be a necessity.
Depreciation: While not a cash expense, it’s important to consider depreciation. Over time, the physical structures on a property lose value, which can impact your tax situation.

These costs can significantly impact your cash flow and the profitability of your investment, so it’s crucial to account for all potential expenses when evaluating an investment property.

Thorough due diligence is crucial before making an investment in Idaho’s real estate. This should include evaluating the property’s condition, understanding the local real estate market, assessing the rental landscape, and calculating all potential expenses. Proper due diligence can help you make informed decisions, mitigate risks, and ensure your investment yields a profitable return over time.

Choose Jaro Team for your residential real estate investment mortgage needs

With our extensive experience and deep understanding of the local real estate market, the Jaro Team is well-equipped to guide you through the complex process of securing an investment property mortgage. We are committed to delivering personalized services, devoting time to comprehend your unique investment objectives and financial circumstances. Our expertise allows us to advise on the mortgage options available to you, ensuring that the financial aspect of your investment aligns with your overall strategy.

4 things you might not know about Twin Falls, Idaho

Twin Falls, Idaho, is a small city located in the Magic Valley region of the state. While it may not be as well-known as some of the larger cities in Idaho, there are plenty of interesting facts and hidden treasures to be discovered in Twin Falls.

Here are four things you might not know about Twin Falls.

Home to the “Niagara of the West”

One of the most popular tourist attractions in Twin Falls is Shoshone Falls. Dubbed the “Niagara of the West,” Shoshone Falls is a breathtaking, 212-foot waterfall that is even taller than Niagara Falls. Visitors can view the falls from several lookouts and hiking trails in the surrounding park.

For visitors looking to explore Shoshone Falls, there are several options available. Visitors may opt to hike the surrounding trails in the nearby park or enjoy a picnic at one of the many areas available.

Full of Natural Wonders

Twin Falls is surrounded by natural wonders, including the Snake River Canyon, the Perrine Bridge, and the Craters of the Moon National Monument. These stunning landscapes provide ample opportunities for outdoor activities like hiking, rock climbing and even base jumping.

A Thriving Agricultural Industry

Twin Falls is located in the heart of Idaho’s agricultural region and is home to many farms and orchards. Visitors can explore local farmers’ markets and pick fresh fruit during peak seasons, providing visitors with a taste of the local produce and the traditional farm culture.

Twin Falls, Idaho, is blessed with rich soils and abundant natural resources that make it a prime agricultural region. The high-quality crops produced here are used for various purposes, including feeding the world, livestock feed and biofuels production.

The area’s abundant water supplies, fertile soil and ideal climate create good growing conditions that produce high-quality potatoes. Other popular crops in the area include sugar beets, wheat and alfalfa.

Home to the World’s Largest Yogurt Factory

Another unique aspect of Twin Falls is that it’s the home of the world’s largest yogurt factory. The Chobani Yogurt factory, which produces over a million cases of yogurt every week, has become a point of pride for the local community, providing thousands of jobs for residents.

In conclusion, Twin Falls is a fascinating city filled with natural beauty, unique attractions and a rich history.

If you are interested in purchasing Idaho Falls real estate, contact us today about getting a home loan.

What to consider when looking for homes for sale in Twin Falls Idaho

Looking for a place to call home? Look no further than Twin Falls, Idaho!

Located in the heart of the Gem State, Twin Falls offers a good balance of small-town charm and big-city amenities.

Nestled in the Snake River Canyon, the area is home to stunning waterfalls, towering cliffs, and peaceful parks. Visitors and residents alike can explore miles of hiking trails, fish in the Snake River, or just relax and take in the breathtaking views.

Here are some things you should consider when looking for Idaho homes in Twin Falls.

Begin with a pre-approval

If you’re in the market for a new home, there’s one important step you should take before you even begin looking at properties: getting pre-approved for a mortgage. It’s important to be financially prepared before you start your house hunting journey to ensure your home is within your financial reach. This is something Jaro Team can help you with!

But why should you bother with a pre-approval? Here are three reasons why it’s a good first step in your home buying journey:

You’ll know how much house you can afford. By getting pre-approved, you’ll have a clear understanding of your budget and what you can realistically afford. Plus, knowing your budget will help you narrow down the areas you can consider living in.
You’ll be more competitive in a competitive market. Homes can sell in a matter of days, and multiple offers can be on the table. Having a pre-approval letter in hand may give buyers an advantage in terms of negotiation and can make for a more streamlined buying process. Additionally, sellers may be more likely to consider your offer if you have a pre-approval because they know the financing is likely to go through.
A pre-approval gives you a clear picture of how much you can afford, which can help you avoid falling in love with a home that is out of your price range.

The neighborhoods

Once you have a pre-approval, it is time to find a good real estate agent and begin the home search. Part of this is the selection of a neighborhood that you like. It directly affects your quality of life, social interactions and overall experience. It’s therefore imperative to conduct thorough research about the available amenities, features and overall vibe of the neighborhood that suits your personality and lifestyle.

The condition of the home

When searching for a new home, one of the most critical factors to evaluate is the home’s physical condition. The state of a home will influence not only your future maintenance expenses, but also your initial purchase decision, making appropriate due diligence critical.

Here’s what you need to know to spot any signs of wear or damage.

First, examine the home’s exterior for any cracks or visible wear, which could indicate a lack of regular maintenance. Look out for signs of water damage or leaks, like rotted or warped wood, mold growth, or water stains, as these could lead to costly repairs.

Inside the home, be on the lookout for visible signs of neglect or disrepair, such as worn-out carpets or floorboards, dated appliances or inadequate plumbing fixtures. Inspect the walls and ceilings for leaks or cracks and check for signs of mold or mildew in bathrooms or basements, which could indicate a more significant problem.

Inquiring about recent upgrades or repairs can also provide some insight into the home’s condition. For example, has the owner updated the windows or HVAC systems, or repaired the roof? Information like this can give you an idea of the home’s upkeep and whether any major issues require attention.

Work with a strong loan officer and real estate agent team

When looking to buy a home, the process can be long, time-consuming and oftentimes overwhelming. To make this process smoother find and work with a team of experts who know the real estate market inside and out. By combining the expertise of both a trusted loan officer and real estate agent, you can streamline the process, helping to make the experience more efficient and enjoyable.

If you would like help with this, contact us today!

Three ideas for your bathroom remodel

Not only will an updated bathroom be visually appealing, but it can also help save money in the long run. Investing in quality materials such as tile flooring or energy-efficient lighting may cost more upfront, but they can prevent costly repairs down the line.

Upgrading the features within your bathroom not only makes it look better – but adds convenience too! Adding a rainfall shower head or hands-free faucets can make for a much more enjoyable experience.

Here are three bathroom remodel ideas.

Vanity

Not only does a new vanity bring immediate visual appeal, but it can also add valuable storage space and make your bathroom more convenient.

When shopping for a new vanity, consider the material of the countertop and sink. Many homeowners opt for granite or quartz as they offer beautiful finishes and durability. Other materials such as marble, concrete and ceramic can also provide unique looks that might instantly upgrade any bathroom.

Next up is size – always measure out the dimensions of your current vanity before heading out to shop. This will give you an idea of what size replacement you need to fit in the same spot. Also, think about additional features like towel bars or drawers. These are often helpful additions if you struggle with storage space in your bathroom.

Finally, consider style! Look at different vanities both online and in stores to get an idea of what fits best with your tastes and existing décor. There are endless design possibilities from classic farmhouse styles to modern floating shelves – so be sure to find one that suits you.

Lighting

Consider installing new lighting fixtures – it’s a simple and effective way to bring life to the space, while also creating a unique atmosphere.

When choosing new lighting, begin by considering the size of your bathroom. If you have a larger space, opt for multiple lights in different areas – this will spread out the illumination while creating more impactful effects. If you have smaller bathrooms, consider fewer fixtures, but of larger sizes as they may still produce enough light without overtaking the room.

Maybe opt for energy-efficient LED or fluorescent bulbs as these last longer and don’t require frequent replacements like incandescent ones usually do. Motion sensors are another great addition if you want to minimize electricity usage even further.

Flooring

If you want something that looks good, but is also easy to maintain, opt for hardwood or laminate flooring – these materials are available in a variety of tones and textures that can easily fit with almost any décor. On the other hand, tiled floors provide more sophisticated beauty while still being easy to clean and maintain.

Don’t forget about budget either! Research different price ranges so you know what kind of plan you need to follow when installing new flooring. Be sure to buy extra material just in case – this will save you time and money in case there are any mishaps during installation.

Finally, take into account maintenance after installation is complete. Harder surfaces such as stone or ceramic tile require polishing or sealing from time-to-time, which can add up in costs over the years. Soft woods like bamboo may require less maintenance overall, but should still get cleaned regularly to prevent surface damage caused by dust or dirt buildup.

If you have any questions about purchasing a home in Twin Falls, Idaho, contact us today about a home loan.

The history of Twin Falls, Idaho

Located in south-central Idaho, Twin Falls is a city with a rich and varied history. From its beginnings as an early settler’s homestead, to its rapid growth as a tourism destination, this small town has undergone many changes over the years – it even briefly served as the state capital!

Let’s take a look at some key moments in the history of Twin Falls.

Founding

The city dates back to the late 1800s. Originally settled by Mormon pioneers, this small settlement eventually became known as “Twin Falls” due to two waterfalls located nearby. Its two beautiful waterfalls are Shoshone Falls and Pillar Falls. Both of these iconic falls are located just outside of town and are a major attraction for visitors from near and far.

Shoshone Falls: Shoshone Falls stands as one of the largest waterfalls in America. It is 212 feet tall and known as the “Niagara of the West.” The falls can be seen year-round, but they really come alive during spring runoff when they reach their fullest power.

Pillar Falls: Located just 5 miles away from Shoshone Falls, Pillar Falls stands at an impressive 80 feet tall. Its calming ambiance is a great place to relax and get away from it all! The falls feature various colorful rocks that have been smoothed by centuries of rushing water.

Growth and Expansion

By 1890, Twin Falls had blossomed into an important agricultural center – its fertile lands provided plenty of opportunity for growth. Along with agriculture, tourism soon developed in the area as well – visitors were drawn to its unique setting and beautiful waterfalls.

In 1907, Twin Falls served briefly as the provisional state capital when Boise experienced flooding. This was a testament to how far it had come.

Modern Times

Today, Twin Falls is home to around 50,000 people and plays host to various attractions including Shoshone Falls Park and Magic Valley Mall. From its humble beginnings to its modern-day popularity, this city has certainly come a long way.

Alongside economic development, Twin Falls is also home to various public services such as hospitals and educational institutions. These institutions provide a vital resource for locals – their presence demonstrates how far the town has come.

Many people love to call Twin Falls home. If you are interested in purchasing a home in Twin Falls, contact us today about a home loan.