Down Payment Policy
Prior to January, 2010 the Housing Authority did not require a down payment for a buyer to purchase a home under their program. The Housing Authority Board discussed the risks to both the buyer and the community if homes go into foreclosure. They decided that risk would be reduced if buyers were required to have a down payment to purchase. The current Fannie Mae policy on market homes is a 3.5% down payment. Fannie Mae does not require a down payment on affordable homes because the gap between affordable and market prices is still quite large in Teton County. Since they can sell the home as a market home if it goes into foreclosure, Fannie Mae is protected. In an effort to lessen chances of foreclosure, the Housing Authority Board voted to require a 3.5% down payment on houses purchased after January 1, 2010.
The Board also voted to allow refinances only up to 95% of a home's maximum resale value, and to allow cash out refinances.