Frequently Asked Questions
Teton Valley Housing offers below-market housing options that differ in important ways from typical open market homes and apartments. Read on to learn more.
The Weighted Drawing
- Can each member of a household apply individually for a home? We ask that each household submit one shared application.
- If my name is pulled in the weighted drawing, will I have a choice of homes? Each home will have its own weighted drawing. If your household is selected at the top of the list for a home, you will be offered the opportunity to apply to purchase that specific home. You may put your name in for multiple homes in the same drawing.
Purchasing a Home
- Does Teton Valley Housing only serve first-time homebuyers? No, but you cannot own other residential real estate at the time of purchase or lease of a home through Teton Valley Housing.
- What's the difference between a lender prequalification letter and a preapproval? Traditionally, a lender prequalification involves a basic analysis of your financial information to give a ballpark estimate of the amount of mortgage they are willing to offer. You will want to obtain this before entering a weighted drawing. A mortgage preapproval is a commitment to lend a specific amount at a certain interest rate, based on a purchase and sale agreement for a particular home.
- Will I need mortgage insurance? No. Lenders typically require mortgage insurance if your down payment is less than 20% of the value of the home. The subsidy Teton Valley Housing provides acts as an equity investment that stays with the home, decreasing the loan-to-value ratio on behalf of the buyer; therefore, mortgage insurance is not required.
- Are co-signers allowed? Yes. Co-signers (persons providing security or assuming partial responsibility for the loan to purchase the unit) may be approved for joint ownership but shall not occupy the unit unless qualified by the Authorized Administrator. All co-signers must execute an Acknowledgement of the Qualified Workforce Housing Deed Restriction provided by the Authorized Administrator to be recorded. If the joint ownership of a unit is approved the co-signer shall not occupy the unit unless qualified by the Authorized Administrator. If title to the Unit transfers solely to a non-qualified co-signer, the Unit must be placed for sale through the lottery process per the Unit’s Qualified Workforce Housing Deed Restriction and the Guidelines in effect at the time of the violation. A Notice of Violation will be issued and the process detailed in these Guidelines will be followed.
Owning a Teton Valley Housing home
- What are the maintenance responsibilities of a Teton Valley Housing homeowner? Homeowners are expected to maintain their homes and yards in good, safe, and habitable condition, in full compliance with all laws, regulations, insurance coverage and homeowners' association requirements. Homeowners are responsible for all maintenance, upkeep, and repairs to their homes and yards.
- Will I need to pay property taxes on my home? Homeowners enjoy the benefit of public services like roads, schools, etc., so, like other homeowners, are responsible for paying real estate taxes assessed by Teton County, Idaho. Property taxes are typically less than 1% of the value of a home. Teton Valley Housing homes should be appraised at, and taxed on, the below-market value (not the full free market value) of the home.
- Given the cap on appreciation (3% annually), what is the financial benefit of buying a Teton Valley Housing home? Investing in real estate is a risk. The primary financial benefit of Teton Valley Housing homeownership is the potential ability to build equity through appreciation (3% compounded annually) and through paying down your mortgage debt. These homes provide an entry point to homeownership that may not otherwise be available locally to middle income buyers.
- Can I make changes to my Teton Valley Housing home? Yes. Teton Valley Housing maintains a list of permitted capital improvements. In order for the cost of improvements to be added to the Maximum Resale Price they must be approved in advance by Teton Valley Housing, and, if a building permit is required, the improvement will only by counted if verified or documented by the applicable Building Department. Generally, improvements such as finishing unfinished space, adding a deck, enhancing water or energy conservation, and permanent landscaping will be approved; decorative enhancements, jacuzzis, saunas, and regular repair and maintenance will not.
Renting a Teton Valley Housing home
- Can I rent a room out (have a roommate)? Yes. Roommates must qualify as part of the household. All roommates shall be qualified through the Authorized Administrator prior to occupancy of the unit and must be party to a lease.
Selling a Teton Valley Housing home
- Can I choose to sell my home at any time? Yes.
- How much can I sell my home for? At resale, homeowners may sell their home for the original purchase price, keeping the equity earned by paying down the principal balance on their mortgage. Plus, they may receive compounding interest of 3% for each year they own the home. And, if the homeowner made approved capital improvements or capital system upgrades to their home, they will be eligible for a credit for these modifications, up to ten percent (10%) of the original purchase price of your home. This arrangement allows Teton Valley Housing homeowners to build equity while keeping the home affordable for future income-qualified homebuyers.
- Are Teton Valley Housing homes inheritable by designated heirs and beneficiaries? Yes. Homeowners may designate in their wills who may inherit their home. Beneficiaries must be meet the income, employment, and other eligibility criteria to continue to own and occupy the home; if this person does not meet these qualifications, the home will be resold at the resale-restricted price and the beneficiary may inherit the proceeds.