2019 Idaho Real Estate Blog

Finding The Right Mortgage In A Tough Market Main Boise Home Loans
Gone are the times where mortgage lenders handed out loans to home buyers with no proof of income and no money down. Lending standards have tightened substantially, making it more difficult to obtain mortgages at reasonable rates. What you need to know about this market...
Down Payments Are Very Important
To get the best rates in today's lending environment, a down payment of 5% is crucial. If you can't get that, then sometimes a 3% down payment will get you into a loan insured by the Federal Housing Administration (FHA). In Idaho, however, Idaho Housing and Finance Association (IHFA) offers 100% purchase loans at very good rates. These loans have income and/or loan size restrictions, property type restrictions, and include mortgage insurance for any loan with less than 20% down.
Reduce Your Debt Load
As much as is possible, try to reduce your debts before applying for a mortgage. You should be able to find a mortgage with a competitive interest rate if your debt-to-income ratio (DTI) is less than 42% of your gross monthly income. Calculating your debts for DTI takes into account your mortgage payment plus other debts that are showing on your credit report.
If your credit score is below 600, or you cannot document income and assets, you will still be able to find a mortgage.but the rate is going to be ugly! With the current lending environment, you may be best served waiting a year or more to see if mortgage lending guidelines are loosened up.
Jumbo Loans Are Very Expensive
Jumbo mortgages are defined by loan amounts of more than $417,000. Jumbo mortgage interest rates have been as much as .75% to 1% higher than standard rates. To avoid this, try to increase your down payment so that your mortgage loan amount falls under this level.
Eric Leigh, Senior Loan Officer
Millennium Mortgage & Insurance, Inc.
PS: As a value-added bonus for our readers, we are now offering you a free subscription to both of our client monthly publications. The focus of our first monthly mailing is centered around providing you timely mortgage and financial industry specific information. The second is a YOU! Magazine subscription, which is centered around...well, you! Articles contain information about YOUR mortgage, YOUR health, YOUR family, etc. To start these free subscriptions, please email me at and ask for your subscription to the monthly mailings!
Posted by Eric Leigh at 10/24/2007 1:39:00 AM
Comments (2)
Re:Finding The Right Mortgage In A Tough Market
That is getting to the point. I know getting a loan is scary but this helps simplify what we need to know to get started. Thanks Eric
Posted by on 10/23/2007 6:45 PM
Re:Finding The Right Mortgage In A Tough Market
You're welcome Trey. The other thing that a lot of people don't realize is that there is PLENTY of mortgage money available now. I talked to a co-worker of one of my clients in Meridian a few weeks ago, and they honestly thought that after their house sells, and they are able to put down 10% on a new house...there still wasn't a mortgage for them. Great credit in the 700's, but assumed no mortgage money would be there.

We have seen a lot of consumers backing off from mortgages because they are buying into the doomsday picture that the media has painted for us. Think about what you have heard...The Housing Bubble Bursting, The Subprime Colapse, Credit Crunch/Credit Tightening, Foreclosure Rates At Historic Highs...the list goes on and on.

SHORT ANSWER...if you have good credit, there is a good mortgage with a VERY competitive rate available for you...period and end of story.

Call me with questions!

Eric Leigh, Senior Loan Officer
Millennium Mortgage & Insurance, Inc.
(208) 880-0316
Posted by on 10/24/2007 8:26 AM
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