Posted by Jace Stolfo on Monday, February 24th, 2014 at 5:55am.
Usually, the tips for first time home buyers can include ideas like visit with your lender or have your home appraised. While these home loan ideas are certainly the traditional way of doing things, it doesn't mean they're the only way that you'll be able to buy one of those Boise homes for sale that you've got your eye on.
Not convinced? Recently, the LA Times ran an article highlighting a non-traditional loan program that's actually quite traditional when you think about it. Parents and other relative have started their own first time home buyer assistance programs, if you could call them that.
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If you want to buy one of the homes for sale in Boise and are fairly certain that you're going to need a bit of help, this type of program might be for you.
Some of the home buyer help is obvious. For example, young adults in their 20s or 30s are getting down payments or other home buying costs as gifts from their parents or grandparents. The LA Times article says the estimate for the number of first-time home buyers doing this is 27%.
However, as you may well know if you're starting the process of buying a piece of Boise real estate, you may have the down payment, but your debt-to-ratio pay out can still edge you out of buying your first home.
The debt-to-income ratio looks at what percentage of your income goes towards monthly payment obligations (student loans, car payments, etc.).
According to CNN Money, the average amount of student loan debt that undergraduates incur is almost $30,000, but some students are graduating with loan debts as high as $50,000 or more.
The new federal debt-to-ratio amount for "qualified mortgages" is 43% max. If your income doesn't cover your regular expenses plus the cost of your mortgage, you may be edged out of getting a home loan altogether.
Solid Tips for First Time Home Buyers
So what do you do if you don't want to postpone the purchase of Boise real estate? The Times article says that families are sometimes helping with first or second mortgages for their kids.
More First Time Home Buyer Information
Finally, all of this doesn't mean that you won't qualify for a first-time home loan. You should definitely check out all the avenues available to you when you decide to throw your hat into the "first-time home buyers" ring.
Here's some tips for first time home buyers to get your started. Not all will be applicable to your situation, but they give you a good background into all of your options.
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