Down Payment And Closing Cost Assistance

Only Idaho Housing offers down payment and closing cost assistance to homebuyers with good credit. If a borrower qualifies, these products can significantly reduce the amount of cash they’ll need up front to purchase a home. Borrowers may qualify for one of these down payment and closing cost assistance loan products.

ProductKey Features
HOME Down Payment Closing Cost (DPCC) Assistance

This is a zero percent interest, due on sale or non-occupancy, deferred loan program available for borrowers with total household income of less than 80% of area median income. Requirements for this program include:

  • Assistance to borrowers can range from a minimum of $1,000 to a maximum of 3.5% of the purchase price, not to exceed $8,000.
  • Assistance level is based on borrower's need and household area median income (AMI). Click Here to view HOME DPCC, IHFA down payment assistance income limits for 80% of AMI.
  • Due on sale of loan with no interest, no monthly payments. Occupancy required on all loans as outlined on the Note and Deed of Trust signed at closing.
  • Borrower minimum investment of $500 with no cash out at closing.
  • Property must have been previously vacant or owner-occupied.
  • Voluntary Sales Disclosure must be signed by the seller on or before the date they sign the Purchase Agreement.
  • Finally Home!® Homebuyer Education program completion prior to applying for the assistance. Class can be in person or online.
  • For further details on requirements, refer to the 2013 HOME Administrative Plan.
  • For more information about this program please call1-877-447-2687 or email homedpcc@ihfa.org.
  • Lender Required Documents
Good Credit Rewards

Homebuyers with a maximum income of $90,000 (First Loan income limits apply for all FHA loans) qualify for Idaho Housing's 10-year fixed rate down payment and closing costs assistance second mortgage program. The down payment assistance loan must be combined with an Idaho Housing product. The second mortgage will be offered at 2% above Idaho Housing's standard interest rate.

  • Maximum amount of second mortgage is 3.5%, or $8,000, whichever is less not to exceed 100% combined loan-to-value, or the maximum approved by mortgage insurance guidelines.
  • Income limits apply for FHA loans.
  • Finally Home!® Homebuyer Education is required for buyers with credit scores lower than 720.
  • Borrowers with credit scores of lower than 700 will not be able to obtain this second mortgage.
  • Borrowers must contribute at least $500 towards the transaction, or higher depending on Mortgage Insurance requirements.
  • Good Credit Rewards funds are based on need. Borrowers' liquid assets are limited to three months payments, or $5,000, whichever is greater. For borrower's 62 years or older, the liquid assets are limited to three months payments, or $10,000, whichever is greater.

These second mortgages are fixed rates over 10 years making the monthly payment low so borrowers can easily qualify for the loan amount they need.

For example: For a FHA loan with a $200,000 sales price, a down payment assistance second mortgage used in conjunction with a 96.5% loan-to-value Idaho Housing loan could be up to $7,000:

$7,000 @ 5.00% - monthly payment is $74.25
$7,000 @ 6.00% - monthly payment is $77.71


As you can see these are affordable monthly payments making it easier for low and moderate income households to qualify for homeownership.