BOISE - In an effort to ease the initial cost burden for limited-income home buyers, the Idaho Housing and Finance Association today unveiled a new mortgage loan that finances 100 percent of the home purchase price, requiring no down payment.

"Interest rates for the new 100 percent no-down loans are 5.50 percent Ð just slightly higher than our conventional rate of 4.99 percent," said IHFA's Vice President of Real Estate Lending Bob Reed. "Both rates are still well below the western market average of 5.80 percent."

The new mortgage product also provides borrowers with two years of involuntary unemployment protection at no additional cost. This protection states that if a borrower or co-borrower suffers a qualified job loss during the term of protection, the policyholder's principal, interest, taxes and insurance up to $2,000 for up to six months will be covered.

The loans require the lender to pay the mortgage insurance on the loan rather than the buyer. IHFA then will reimburse the lender for that expense. Mortgage insurance is typically required for the first several years of a loan, until the balance remaining is less than 80 percent of the home's value.

"We're happy to be working with IHFA to help people in Idaho become homeowners," said Kevin Schneider, President of the U.S. mortgage insurance business for Genworth Financial. "Besides opening the door to limited-income home buyers, this new product will provide them with real peace of mind in today's uncertain economic times." Genworth Financial will provide all the mortgage insurance for the loans.

Having the mortgage insurance paid by the lender can be a significant savings to the buyer. For instance, on a $100,000 house, mortgage insurance can amount to $4,850 in the 10 years it takes to reach that 80-percent value threshold.

The rates are listed on IHFA's Web site at www.ihfa.org/residential_rates.asp.

IHFA's Residential Lending Department can answer any questions about the new 100 percent loan program. Contact the department toll-free at 800-219-2285.

IHFA loans are available through 40 participating lenders at more than 110 branches statewide. A list of these lenders is available at www.ihfa.org/residential_lenders.asp.

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Genworth Financial is a leading insurance holding company serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers in 20 countries, including the U.S., Canada, Australia, and more than a dozen European countries. For more information, visit www.genworth.com.

The Idaho Housing and Finance Association, a financial services and housing business organization, provides funding for affordable housing in communities where it is most needed and when economically feasible.
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