First-Time Home Owner Program

*UPDATE STIMULUS PLAN INFORMATION*

IHFA’s Down Payment Assistance Tax Credit Advance
The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time homebuyers of 10% of the sales price, up to a maximum of $8,000.  This tax credit is available to qualified homebuyers who purchase a home by December 1, 2009.  In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term Tax Credit 2nd Loan to qualified buyers. 

In conjunction with an IdaMortgage loan, a subordinate loan will be offered to qualified first-time homebuyers in the amount not to exceed 5% of the sales price or $7,000.  A fee will be charged of $250 with $150 refunded upon repayment of the loan on or before the loan due date.  The loan will accrue interest at 3.0% with a due date of July 1, 2010.  The Tax Credit 2nd Loan is expected to be paid off from the borrower’s tax refund obtained through the application of the federal tax credit. 

The borrower must be a first-time homebuyer and qualify for an IdaMortgage loan.  If the homebuyer defaults on the loan and cannot repay at that time, IHFA has the option of pursuing foreclosure as described in the deed of trust, or modify the loan to amortize over the remaining term of the first mortgage loan at an interest rate of 3% higher than the first mortgage rate. 

Borrower qualifications are:
1) Must be a first-time homebuyer,
2) Must have a FICO score of no less than 640, and a total debt ratio of no more than 45%, (NOT including this second mortgage loan payment).  Some MI’s may require higher credit scores,
3) Homebuyer qualifies for an IdaMortgage loan, which includes the monthly second mortgage payment in the debt ratios for this Community second loan just like the Good Credit Rewards second loan,
4) Homebuyer Education required.

Call me if you have questions or would like more information

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Purchasing your first home should be an exciting time of your life.  As you browse through this page, it is important to pay particular attention to the process leading up to your purchase.  

The first step as my duty to you is to introduce you to a qualified home loan specialist.  The mortgage consultant will allow you the buyer, to understand what you can afford.  After the qualification is complete, we can begin to search for your home.  Certain loans will require the buyers to complete “Home Buyer Education” classes.  These classes make you an informed buyer

Idaho Housing and Finance Association began offering residential mortgage loans in 1978 to assist low-to-moderate income borrowers, who are generally first-time buyers, in purchasing homes. Since then, the Association has been opening doors to home ownership by providing below-market interest rate loans to these families and individuals throughout Idaho.

A qualified borrower must be a first-time home buyer, or cannot have owned a home during  the preceding three-year period, except in certain targeted counties. A qualified borrower’s income must also fall within IHFA guidelines. An IHFA loan can be used to purchase a new or existing home, condominium or manufactured home that meets FHA, VA, Rural Development or conventional requirements, provided that the price does not exceed the established sales price limit.

IHFA offers the traditional 30-year fixed rate home loan, and the Interest Qualifier (I.Q.) loan. IHFA home loans are made in partnership with a network of participating lenders located throughout Idaho. Consequently, thousands of Idahoans have become home owners who might not have otherwise enjoyed the benefits of the "American Dream.