Idaho Housing and Finance Association

We want to thank the Idaho Mortgage Lenders' Association for their $250 donation to the Home Partnership Foundation! Your donation will help more Idahoans secure safe, stable, and affordable housing. Interested in donating? Visit https://lnkd.in/gF9pBnDE

TRUE OR FALSE: Predatory lenders are small companies or loan brokers that you have never heard of. To avoid predatory lending, it’s best to stick with large companies with names you know. The answer is… FALSE! Predatory lenders can be a large company with a name you know, or a small company or loan broker you’ve never heard of. They can be an appraiser, a mortgage broker, or a home improvement contractor who: • Sell property for much more than they are worth, using false appraisals • Encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan • Knowingly lend more money than a borrower can afford to repay • Charge high interest rates to borrowers based on their race or national origin and not on their credit history • Charge fees for unnecessary or nonexistent products and services • Pressure borrowers to accept higher-risk loans such as balloon loans, interest-only payments and steep prepayment penalties • Target vulnerable borrowers for cash-out refinance offers when they know borrowers are in need of cash due to medical, unemployment or debt problems • “Strip” homeowners’ equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower • Use high-pressure sales tactics to sell home improvements and then finance them at high interest rates There isn’t one simple definition of predatory lending, because there are so many ways that consumers can be tricked into getting a loan that will be difficult to repay. To avoid falling victim to predatory lending, learn everything you can about buying a home and financing it. Those who have been victims of predatory lending are victims because they weren’t educated enough about loans. Visit finallyhome.org to get educated today.

TRUE OR FALSE: Common problems to look for when buying a home are water damage, structural problems, mold and lead-based paint. The answer is… TRUE! Here are more red flags to look out for 🚩 Ask the current homeowner or REALTOR® about unusually high heating and/or air conditioning bills, underground storage tanks, quality of drinking water, and wastewater treatment (especially in rural areas). Also, watch for problems like signs of termites, ants or other pest problems. Pay attention to things like old, flaky paint on sills or trim or the outside of the house, and floor covering that is worn in large areas. Look closely at the siding on the house and watch for wavy or spongy siding underneath, or a roof that is seriously worn or has many layers.

TRUE OR FALSE: Being pre-qualified for a loan means that you are pre-approved. The answer is… FALSE! What's the difference between pre-qualified and pre-approved? Most lenders will be happy to pre-qualify you and help you determine approximately how much money you are qualified to borrow. Usually, there is no charge for this service, and you are not required to get your loan through that particular lender if you find a better interest rate and terms elsewhere. Being pre-qualified for a loan does not mean you are pre-approved. When a lender pre-qualifies you for a loan, they do not check into what you tell them. They only fill out a worksheet based on the information you give them and will give you an approximate amount that you might be qualified to borrow. Pre-approval takes longer than being pre-qualified. The lender will ask for all the important information to determine what size loan you qualify for. After checking all the information you provide, they will actually provide you with a pre-approval letter, which lets sellers know that you are already approved for a certain amount and will make it easier for them to accept your offer. In today’s home-buying market, most homebuyers are finding that they must be pre-approved by a lender before they even begin to look at houses. Sellers are much more likely to accept an offer on their house if the buyers are pre-approved. If you're planning to buy a home this year, make sure to get pre-approved as soon as possible. Visit https://lnkd.in/g9epHrKG to contact one of our lending partners and get started.

TRUE OR FALSE: If you’re getting a new job in the same field, changing jobs before buying a house shouldn’t affect your home loan. The answer is… TRUE! But here are some important considerations when considering changing jobs before buying a home. If you’re a salaried employee who doesn’t get commission for sales, or an employee who is paid by the hour, changing jobs should not affect your home loan. If a large portion of your income comes from commissions from sales you make, you SHOULD NOT change jobs before buying your home, as there is no guarantee of how much money you will be making. Changing employers may drastically change the amount of commission you make, and lenders average the commission you made over the last two years. If you’re considering self-employment, DON’T DO IT until after you buy your house. Lenders want to see a two-year record of self- employment income. If you don’t have that, they will see you as a high risk and you may not get the loan. Job stability is very important when lenders make decisions about lending money.

Happy Homeownership Month! We believe every Idahoan should have the opportunity to buy a home, which is why we offer affordable financing options, down payment assistance, and much more. In addition to this, we believe education is crucial to homeownership success.   This year along with Finally Home!, a leading homebuyer education program, we’re highlighting a few misconceptions that we often hear from homebuyers. Keep an eye out the rest of the month for our "Homebuyer Knowledge Check" posts to see if you can correctly identify whether the homebuying statements are true or false.

It was great visiting with our lender and REALTOR® partners in Pocatello and Twin Falls last week. Congratulations to all our STAR award winners in the area!

We want to thank everyone who joined us at the Conference on Housing and Economic Development last week. Over 600 Idaho community and business leaders gathered in Boise to discuss the future of our state and how we can respond to the challenges ahead. We hope the keynote speakers inspired you, the workshops gave you new strategies and tactics to improve your organization, and the networking opened up new opportunities.

Thank you, Governor Brad Little, for proclaiming April as Fair Housing Month in Idaho! Visit https://lnkd.in/gwhw7Qa to access useful information about fair housing law, ongoing and new initiatives in Idaho, and how fair housing choice supports community stability and economic opportunity for all Idahoans.

What does the future hold for Idaho? From how to build strong towns to the political landscape – the keynotes at the Conference on Housing and Economic Development will provide smart insight, big ideas, and inspiration to take with you and help you be a part of leading Idaho's future. Registration prices increase on April 2, so don't hesitate. Register today: idahohousingconference.com