2. Income: Your income must be sufficient to cover the monthly mortgage payment, taxes, and insurance. HUD uses a formula to calculate your income eligibility.
3. Debt: Your debt-to-income ratio (DTI) must be no more than 43%. This means that your monthly debt payments cannot exceed 43% of your monthly income.
4. Residency: You must be a U.S. citizen or a lawful permanent resident. You must also intend to occupy the HUD home as your primary residence.
5. Home inspection:HUD homes are sold "as-is," so it's important to get a home inspection before you make an offer. The home inspection will help you identify any major repairs or issues that need to be addressed.
6. Purchase price: The purchase price of a HUD home is determined by the appraised value of the property. HUD will not sell a home for less than the appraised value.
7. Down payment: HUD homes require a down payment of at least 3.5%. If you don't have enough money for a down payment, you may be able to get a HUD loan that allows you to finance the down payment.
8. Closing costs: Closing costs include the costs associated with buying a home, such as title insurance, recording fees, and appraisal fees. Closing costs typically range from 2% to 5% of the purchase price.
9. Move-in requirements: HUD homes must be occupied within 60 days of closing. You will need to provide proof that you have moved in, such as a utility bill or lease agreement.
10. Insurance: You will need to purchase homeowners insurance before you close on the HUD home. The insurance company will require a proof of home ownership, such as a HUD-1 settlement statement.
By following these criteria, you can increase your chances of qualifying for a HUD home in Boise, Idaho.