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.

Idaho Housing will require borrowers to take Finally Home HBE for these scenarios:

• Borrowers are using Idaho Housing down payment and closing cost assistance
• Borrowers are first-time borrowers using Fannie/Freddie HFA products
• When AUS findings require homebuyer education.

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.

Guide borrowers to Finally Home! here.

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.

For more information about the MCC program, please click here. If you have further questions, please email mccinfo@ihfa.org.

First Loan Tax Exempt
When determining Program Income eligibility for the Tax Exempt (Bond) Loan Program to calculate Household Income you must include income of all occupants, 18 and older, regardless of their relationship to the borrower, whether or not they are on the loan, and whether or not it can be used for qualifying.Non-occupying co-borrowers are not allowed with First Loan Tax Exempt.

The MCC/Tax Credit (Currently Suspended)
When adding The MCC/Tax Credit to any loan, you must include income of all occupants, 18 and older, regardless of their relationship to the borrower, whether or not they are on the loan, and whether or not it can be used for qualifying. Non-occupying co-borrowers are not allowed with The MCC/Tax Credit.

Fannie Preferred/Freddie HFA Advantage Products
When using Fannie Preferred or Freddie HFA Advantage products, use the qualifying income of all borrowers, even non-occupying co-borrowers.

First Loan/Standard FHA/Standard Conventional
When using standard FHA and standard Conventional loans, for income eligibility for Idaho Housing, use the qualifying income of occupying borrowers. You do not need to use income of non-occupying co-borrowers toward program income eligibility and you do not need to include household income for The First Loan.

Standard USDA/RD loans
When using standard USDA, follow USDA/RD guidelines, remembering you must include household income and you must calculate income according to USDA/RD guidelines. Borrowers must be within USDA/RD income limits/Idaho Housing limits (whichever is lowest) for program eligibility.

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.

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
• There is a $250.00 processing fee
• The loan must be a 1st lien mortgage (subordinate liens are not eligible)
• The loan must be current with no outstanding amounts due
• The re-cast 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 and to initiate the process.

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 do not have a separate address.

Yes, Idaho Housing allows borrowers without credit scores. Just 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.