Only Idaho Housing offers down payment and closing cost assistance to help your clients who have 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.
Good Credit Rewards
Homebuyer’s applying for Advantage, Preferred, and First loan products may be eligible for Idaho Housing’s 10-year 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 rates.
- The Good Credit Reward second loan interest rate is 2% above the note rate for all loan programs.
- May be used with the Preferred and Advantage program with a 680+ credit score.
- Can combine with First Loan products with a minimum credit score of 640.
- CANNOT be combined with $2,000 gift.
- Maximum amount of second mortgage is 2.5%, or $8,000, whichever is less not to exceed 100% combined loan-to-value, or the maximum approved by mortgage insurance guidelines.
- First-time homebuyer income limits apply for FHA loans with Good Credit Reward 2nds.
- Finally Home!® Homebuyer Education is required if both borrowers are first-time homebuyers. Only one certificate is required for both borrowers.
- Borrowers must contribute at least .5% of the purchase price of their OWN funds toward the transaction.
- 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.
- This second mortgage is a fixed rate over 10 years making the monthly payment low so borrowers can easily qualify for the loan amount they need.
HOME Down Payment Closing Cost (DPCC) Assistance
Zero percent interest, due-on-sale or non-occupancy loan program available to qualified borrowers with household income at or below 80% of area median income.
- Housing constructed on or before January 1, 1978 temporarily suspended from this program.
- Eligible Areas: Treasure Valley, Coeur d’ Alene/Post Falls, Pocatello.
- Minimum $1,000 up to 10.0% of the sales price not to exceed $14,999, based on based on borrower’s need and household Gross Income household area median income(AMI).
- Minimum $500 homebuyer cash investment.
- Cannot be used in conjunction with IHFA Gift programs or other IHFA 2nd mortgage programs.
- HOME offers other programs with differing amounts of subsidy to the homebuyer.
- Can be used with all Idaho Housing first mortgage products.
- Finally Home!® Homebuyer Education in person or online
Lenders/REALTORS® should contact HOMEDPCC@ihfa.org for additional information.