Frequently Asked Questions

Yes. For FHA/VA/Conventional loans, Idaho Housing will allow for sole and separate transactions, following agency guidelines.

Yes. Follow agency guidelines/AUS findings regarding Manufactured Homes.

No.

Idaho Housing will not add an overlay to investor guidelines.

Idaho Housing follows FHA, VA, Fannie and Freddie guidelines.

If a borrower has had a prior foreclosure with Idaho Housing, they will need permission granted from Idaho Housing to apply for a future loan with Idaho Housing. Please email a letter of explanation from your borrower to resloan@ihfa.org, detailing why the foreclosure occurred and what is being done to prevent a foreclosure in the future. Our foreclosure department will then research how the borrower cooperated during the foreclosure process. After the research is completed, a determination will be made on whether this borrower will be allowed to apply for a future loan with Idaho Housing.

Finally Home! Homebuyer Education (HBE) will be required for:

• Loans that include down payment and closing cost assistance.
• Loans that use programs with a max income of 80% or below area median income (see income limit matrix here).
• When Freddie Mac or Fannie Mae requires it (i.e. when both borrowers are first-time homebuyers).

In situations where there are two first-time homebuyers, only one certificate will be required.

First-time homebuyers are defined as anyone who has not owned and occupied a primary residence within the last three years.

Finally Home! HBE will also always be required of any borrower with a credit score less than 620 as well as any time your AUS findings require HBE.

To request to have MI removed, borrowers will always need to contact HomeLoanServ. They can call 800-526-7145 or email support@homeloanserv.com. Removing MI is considered on a case by case basis.

First, the loan must be eligible in the first place. For instance, there must be no delinquencies on the loan.

If ‘current value’ is used, a new Broker Price Opinion (BPO) will be ordered by HomeLoanServ. When using “current value” dropping PMI is generally not permitted on loans less than 2 years old. If the loan is 2-5 years old, an LTV (loan to value) of 75% or less will be required. If the loan is more than 5 years old, an LTV of 80% or less will be required. Borrowers may not order their own BPO or appraisal. A BPO or appraisal ordered by a borrower will not be used to execute removal of MI. Upon a request to have the MI removed, HomeLoanServ will advise the borrowers of the required BPO amount ($150), and where to send a cashier’s check which should include the borrower(s)’s contact info. HomeLoanServ will order the BPO upon receipt of the fee and the borrower(s)’s request.

If ‘original value’ is used, an LTV of 80% or below will be required. This can always be used to evaluate removal of PMI if an LTV of 80% or less is met and the borrower can prove the original value is still there and the borrowers have a good payment history. We require proof (broker price opinion, market analysis, tax assessment notice, etc.) that the property value is currently at least equal to or above the original value. The original value is defined as the LESSER of the appraised value or sales price at the time of the loan origination.

PMI can only be removed on conventional loan programs (Fannie Mae or Freddie Mac). Regarding MI removal on an FHA loan: removal of MI on the majority of FHA loans is not permitted for the life of the loan. However, some older loans do not require it for the life of the loan and some only require it for the first 11 years. Call or email HomeLoanServ as referenced above for more information.

Our standard lock period is 45 days for existing constructions and new construction. Extensions can be applied at the time of the initial lock or can be applied as needed. Lock extensions are for a 15-day period each and are subject to the following cumulative fees, charged to the lender at purchase:

• The 1st extension of 15 days (for a total of a 60 day lock) would cost 0.125% for a total fee of 0.125%.
• The 2nd extension of 15 days (for a total of a 75 day lock) would cost an additional 0.375% for a total fee of 0.5%.
• The 3rd extension of 15 days (for a total of a 90 day lock) would cost an additional 0.5% for a total fee of 1%.

Please email extension requests, including the locked Idaho Housing loan number to lockdesk@ihfa.org. A maximum of three 15-day extensions are allowed. Additional extension requests will be considered on a case-by-case basis and may be subject to repricing or additional fees. For extensions beyond 90 days, please contact the lock desk at lockdesk@ihfa.org.

Idaho Housing will require you follow agency guidelines/AUS findings regarding income documentation.

The exception to this is when using The First Loan or the MCC/Tax Credit. Since borrowers must be first-time homebuyers for these products (unless they are purchasing a home in a targeted county), 3 years of tax returns or transcripts with applicable schedules will be required to show borrowers have not claimed any mortgage interest.

Send an email with your request to resloan@ihfa.org and we will send you our Lender/Broker Partner application.

Borrowers will receive their official MCC/Tax Credit Certificate in January of the year following the year their loan closed.

I forgot to add the MCC to my borrower(s)’s loan and their loan has already closed, is there anything I can do?

The MCC/Tax Credit should always be added at the time a loan is locked. For the rare instance when it is not added when the loan is locked, the MCC/Tax Credit may be added soon after the loan is closed, as long as the borrower(s)’s is/are eligible for the MCC/Tax Credit.

The lender must complete all 5 required documents/disclosures on behalf of the borrower and have the borrower sign the documents (borrowers should never complete their own MCC/Tax Credit document/disclosures).

If Idaho Housing has already purchased the loan, collect the $300 fee from the borrower ($200 goes to the lender and $100 comes to Idaho Housing) and mail the $100 check to Idaho Housing and Finance Association. On the check include the borrower’s name, Idaho Housing loan number and note that the check is for the MCC/Tax Credit fee. Mail the check to:

Idaho Housing and Finance Association
Attn: MCC Admin
565 W. Myrtle St.
Boise, Idaho 83702

If Idaho Housing has not purchased the loan, Idaho Housing will take our $100 from the wire at the time we purchase the loan from the lender.

In every case, the lender must upload all 5 required document/disclosures into the borrower’s file in Lender Connection as a “Purchase Conditions (Follow Up Documents)” as soon as possible, and notify Idaho Housing the borrower is adding the MCC. There are several software applications at Idaho Housing this information needs to be entered into or the borrower will not receive their MCC Certificate… This is very important.

All 5 required documents are found on the Home page of Lender Connection or the Home page of the Rate Sheet under QuickLinks.

In order to determine if the borrowers are eligible to qualify for Idaho Housing programs based on their income see below:

• For “The First Loan” or the MCC/Tax Credit eligibility include the entire household income for all residents who are 18+ years with income.
• For Standard VA, RD, FHA, 15 & 20 year Conventional purchases and all Conventional Cash-out Refinances loan product eligibility include only the occupying borrower(s)’s qualifying income.
• For FNMA HFA Preferred and FHLMC HFA Advantage loan product eligibility include all borrower(s)’s qualifying income. Include any non-occupant co-borrowers for FNMA’s HFA Preferred. FHLMC does not allow non-occupant co-borrowers on their HFA Advantage program.

In order to determine if the borrower(s) will qualify for Idaho Housing programs follow agency guidelines.

Idaho Housing will allow escrow holdbacks as long as they are not health or safety related, and as long as the lender follows agency guidelines regarding escrow holdbacks. It will be the responsibility of the lender to track the escrow holdbacks.

Idaho Housing will not add an overlay to investor guidelines. That said, Idaho is a community property state. Therefore, the non-purchasing spouse will need to sign the Deed of Trust. They can also be included on title in the vesting. If they do not want to be on title, they still must sign the Deed of Trust and then they can sign a Quit Claim Deed to be removed.

Idaho Housing will expect you to follow agency guidelines regarding wet signatures. Below is a list of documents where a wet signature is preferred:

• Note – Required by investors
• Deed of Trust – Required by investors
• Final Closing Disclosure
• Signature Affidavit – Required by investors
• Borrower’s Authorization – Required for our Quality Assurance Process
• 4506T – Required for our Quality Assurance Process and for the IRS
• Borrower Affidavit (First and MCC) – Required due to notarization requirement
• When required: SSA-89 – Required for our Quality Assurance Process and for the Social Security Administration

Idaho Housing will follow investor guidelines for re-casting a payment after a large principal reduction.

Re-casting is considered on a case by case basis. Re-casting is not guaranteed and a request for recasting may be denied.

To be eligible for a recast a loan must meet the following criteria:

• The loan must be a conventional mortgage (FHA, VA, and Rural Development loans are not eligible under this program)
• Principal reduction payment of at least $10,000 or 5%, whichever is less
• The loan must be a 1st lien mortgage (subordinate liens are not eligible)
• The loan must be current with no outstanding amounts due
• The recast cannot be completed until the borrower(s) has made at least two payments to HomeLoanServ
• The loan cannot be in active bankruptcy
• Only one recast can be done for the life of the loan

Prior to making their lump sum payment the borrower will need to email support@homeloanserv.com to confirm eligibility. Once HomeLoanServ confirms eligibility the following may occur:

• The borrower(s) should then make their lump sum payment, and a one-time recast fee of $60. The recast fee can be deducted from the lump sum payment if specified.
• The new monthly mortgage payment amount will be effective on the 1st of the following month after recast funds are received.

Yes, as long as the respective agency will allow it and as long as the borrower did not use HOME program funds for their first Idaho Housing loan.

Yes, Idaho Housing allows accessory units, as long as they are not income producing, do not have a separate address, and do not have a separate meter. Other than that, follow agency guidelines.

Yes, Idaho Housing allows borrowers without credit scores. Not having a credit score is not the same as having less than the required score—just be sure to follow agency guidelines for borrowers without any credit scores. When locking the loan you will need to enter 999 as the credit score for a borrower without a credit score. Borrowers without a credit score can use our DPCC assistance programs but they wouldn’t be able to use the Second Mortgage DPCC program without a co-borrower who does have the required credit score.