Frequently Asked Questions

What if I don’t have any credit?

Believe it or not, no credit can be better than having bad credit. There are community lending programs specifically designed for people just starting out.

What if I don’t have enough money for a 10% down payment?

There are loan programs that allow for 100% financing. Of course, the availability of these programs are driven by credit, income and job stability.

How many years do I need to be on my job?

We like to see continuous employment history for 2 years, however if you’ve changed jobs and your in the same line of work, this requirement can be flexible.

Can I get a 2nd mortgage?

Yes. Interest rates are usually a bit higher, but can be beneficial if your 1st Mortgage has a great interest rate and you don’t want to lose that rate.

What if I just graduated from college?

If you just got out of college and have a job in the line of work for which you were educated, we can usually count your college as part of your job history.

If I’ve just moved here and don’t have a job, can I still qualify for a loan?

Yes, however you usually must put down a minimum of 20% and have at least 6 months worth of mortgage payments including taxes & insurance in a bank account.

How soon after I buy a home, can I refinance for a better rate?

We don’t require any length of time as homeowners, however if the property has been yours for less than 1 year, the original purchase price is used rather than the current appraised value.

If I’m not married, can I use another person’s income?

Yes, as long as you know that you have equal responsibility for repayment of the mortgage debt.

Can I get a loan if I’ve had a bankcruptsy?

Yes, it usually requires an explanation and established good credit since it’s dismissal/discharge.

Can I use the equity in my house to buy a college education for my child and is it tax-deductible?

We have done loans for clients at their request for a variety of purposes. For your own benefit, we highly suggest that you consult with a tax professional regarding the usage of funds.

What credit counts when applying for a home loan?

All payments made on time play an important part in establishing credit. Utility bills, rental payments, phone bills, insurance bills can all be used to establish a payment history.

Can I get money from a family member as down payment?

Yes, family can gift you money as long as there is no payment or expectation of repayment.

What is Gift Equity?

Gift Equity is when a family member gives you equity in the home they presently own instead of money as down payment.

How do I know how much house I can afford?

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

What is the difference between a fixed-rate loan and an adjustable-rate loan?

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

How is an index and margin used in an ARM?

An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

How do I know which type of mortgage is best for me?

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Idahome Loans Corp. can help you evaluate your choices and help you make the most appropriate decision.

What does my mortgage payment include?

For most homeowners, the monthly mortgage payments include three separate parts: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property nsurance company.

How much cash will I need to purchase a home?

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply: Earnest Money: The deposit that is supplied when you make an offer on the house Down Payment: A percentage of the cost of the home that is due at settlement Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.