IHFA Residential Loan Program Sets 20-Year Record High

BOISE — Approximately 3,204 Idaho home buyers sought low-interest mortgage financing from the Idaho Housing and Finance Association (IHFA) in fiscal year 1998 — the most ever in its 20-year history, according to IHFA officials.

During FY98 (7/1/97 to 6/30/98), IHFA helped these buyers afford their first home with a below-market interest rate loan through its Single-Family Mortgage Loan Program. Loan activity was up an additional three percent from 1997 thanks to Idaho's strong economy and IHFA's low mortgage rates.

Joy and Brian Chapman were one family who purchased their home during FY98 using IHFA's program. My brother works for a bank and recommended IHFA because it has really low rates," said Joy Chapman. We're very excited about finally being able to own a home, it's our first one." The Chapman's purchased a 1,008 square foot, two bedroom/one bath home in Pocatello.

Program funds come from the sale of tax-exempt Mortgage Revenue Bonds (MRBs). MRBs are sold on the national market. The proceeds assist the state's limited-income families with their home purchases. IHFA mortgage loans can be used to purchase new or existing homes, condominiums, or manufactured homes that meet FHA, VA, RD and Conventional requirements, provided the price of those homes conform to specific federal price limits.

IHFA's 20-year-old mortgage program has made home buying accessible to more than 35,000 Idaho families since 1978. Most borrowers agree that IHFA's below-market interest rate is what makes the difference between renting and owning a home. The average par rate during FY98 was 6.47 percent, with over $244 million invested in affordable mortgage opportunities for Idahoans.

In February, Laree Palmer purchased her first home in Kuna. IHFA's interest rate was the kicker for me," explains Palmer. It was time for me to make this investment for my family. My payment is incredibly low." She bought a 1,265 square foot home with three bedrooms and two baths. The only downside to owning your own home is lawn mowing," laughs Palmer who had never mowed before her home purchase.

IHFA's loan program is geared towards first-time home buyers who qualify under federal income and sales price guidelines. Eight-two percent of borrowers are first-time home buyers who spend an average of $78,621 on their home. IHFA's typical borrower is 31 years old and earns $31,089 per year with a 2.6 family size.

Home ownership remains the cornerstone of financial security," said Gerald Hunter, IHFA president and executive director. It stabilizes local economies and encourages families to invest in their community's future. That's why we're pleased to see more families this year take advantage of our program."

IHFA is a self-supporting, nonprofit corporate body. IHFA's mission is to promote affordable housing opportunities to Idaho's limited-income citizens. IHFA uses no state funds or state employees to support its operations.