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.