DON MCFARLAND with RE/MAX Executives your real estate expert!

BUYER TIPS

Congratulations on your decision to purchase a new home

Your first step toward buying your new home will be to analyze your families needs. I would be happy to assist in analyzing your needs so that you will be able to get a clear picture of exactly what your new home should be.First, you should write down what you are looking for in your new home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten that promotion, which allows you to move to your Dream Home. There are many factors that will have a bearing on how you approach your home search. Second, establish a time frame that you would like to stay within for buying your home. Depending on your reasons for wanting a new home and the current state of the market here in the area, you will be able to come up with a rough guideline, which you can finalize as you gather more information. Last, you most likely have a mental picture of what you would like your house to look like and what features it should have. It?’s very important to write these ideas down to avoid any ambiguity later in your home search. You should make at least two lists: one should be a list describing your dream home and the other should list the features of the home that you feel are absolute must have in order to buy the home. In a perfect world, your new home would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process. This is a natural and evolutionary process that will become much clearer as you find out what is available here in our market.

Idaho Housing Low Interest Loan Program

IHFA Mortgage Rates

IHFA is able to offer lower rates on mortgage loans for first-time home buyers through the sale of Mortgage Revenue Bonds, or MRBs. Income from these private activity bonds is exempt from certain taxes. This allows us to provide a lower interest rate for borrowers, while preserving a competitive rate of return for investors.

IHFA mortgage rates (just like conventional rates) are subject to change at any time. The date listed below shows when the rate was last updated’the rate may have changed since then. For the most current interest rate on an IHFA or other loan, contact your lender for a quote.

These rates do not represent a quote from IHFA or any other lender.

Effective October 10, 2002 the following mortgage interest rates will be in effect for Idaho Housing and Finance Association:

Last update on: 10.10.02

Current IHFA 30-Year Fixed Rates:

0 discount points (par) 5.25%

1 discount point 5.11%

2 discount points 4.97%

"I.Q." Interest Qualifier Program Rates:
(Stepped Rates*)

0 discount points (par) 4.77% - 5.52%

1 discount point 4.63% - 5.38%

2 discount points 4.49% - 5.24%

Notes:

* In stepped rate mortgages the lower mortgage rate is applicable for the first three years and the higher rate applies from year four until the loan is repaid.

** Rates and amounts are subject to change upon notice.

Maximum Purchase Price By Counties

IHFA Borrower Requirements

Federal and Association regulations apply to everyone who obtains an IHFA mortgage loan. These include the following conditions:

The borrower must be a resident of Idaho, must intend to occupy and does, in fact, occupy the financed property as his/her principal residence within 14 days after closing.
The borrower must have an acceptable credit and employment history.
The home must be used by the buyer as his/her principal residence.
The borrower cannot have had an ownership interest in his/her principal residence at any time during the last three years.* This requirement has been eliminated for the following Targeted Counties:*

Adams	Canyon	Idaho	Oneida
Bear Lake	Cassia	Jefferson	Owyhee
Benewah	Clark	Jerome	Payette
Bingham	Clearwater	Kootenai	Shoshone
Boise	Custer	Lemhi	Teton
Bonner	Gem	Lewis	Washington
Boundary	Gooding	Lincoln

*Criteria for qualifications as a Targeted County have been established by the U.S. Treasury based primarily on economic conditions and housing stock within that county.

The borrower cannot have an annual gross income exceeding the following limits:**