Idaho Down Payment Assistance Programs and First-Time Home Buyer Programs

Idaho is a housing market that has been attracting plenty of home buyers in recent years. Many home buyers are looking for down payment assistance grants and closing cost assistance to help them realize their dream of buying in Idaho. Luckily, there are a number of mortgage programs available in Idaho that can help, including ways to buy with a low down payment, low monthly mortgage payment, forgivable loan, and more.

There are many reasons to consider searching for Idaho down payment assistance programs as a part of your home buying process. While good credit is always important for buying a home, these programs serve home buyers with a variety of credit scores. Down payment assistance funds can help with closing costs. Furthermore, these programs include conventional loans, Federal Housing Administration (FHA) loans, Veterans Affairs (VA), and USDA loans.

Looking for assistance in Boise?

This page lists all of the assistance available to Idaho homebuyers, including statewide and local resources. If you’re looking for information about down payment assistance in Boise only, you can find local information here.

Idaho Down Payment Assistance Programs

Idaho has several down payment assistance programs that can help home buyers afford to buy a new home. Below, we’ve broken down several programs, including how to make down payment assistance work, eligibility requirements such as minimum credit score, loan limits, interest rate, closing cost, sales price and more.

Idaho Housing and Finance Association

The Idaho Housing and Finance Association has its own suite of loan programs: HFA Standard Affordable Housing Loan. This could be a great option for home buyers looking to buy a home in Idaho. Both Fannie Mae and Freddie Mac and FHA loans work with Idaho HFA.

There are three types of down payment and closing cost assistance programs available with these loans: Forgivable Loan, 15 year Second Mortgage, Idaho Heroes and 15 Year Second Mortgage. First time home buyers and Heroes eligible buyers (nurses, teachers, firefighters, police, paramedics and EMTs) could be eligible to combine multiple down payment assistance offerings.

Idaho HFA Standard Affordable Housing: Forgivable Loan

Assistance type: Forgivable Loan. Tiered forgiveness of 10% per year and fully forgivable at the end of year 10. Tiered interest rate.

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 3% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Borrower must be a first time home buyer
• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Any unforgiven balance will be due and payable upon sale or refinance

Idaho HFA Standard Affordable Housing: 15 Year Second Mortgage

Assistance type: 15 year fixed rate loan. Interest rate is 2% more than the rate on the first mortgage

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 7% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Cannot exceed the maximum LTV / CLTV approved by mortgage insurance

Idaho HFA Standard Affordable Housing: Heroes 15 Year Second Mortgage

Assistance type: 15 year fixed rate loan. Interest rate is 2% more than the rate on the first mortgage

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 7% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: None

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Cannot exceed the maximum LTV / CLTV approved by mortgage insurance

City of Boise Homeownership Opportunity Program

The City of Boise is committed to helping first time home buyers buy homes. Their City of Boise Homeownership Opportunity Program is an innovative collection of home ownership policies that support young home owners in Idaho.

Assistance type: Deferred mortgage, subject to recapture on sale or transfer. Amount due is the original assistance times the cumulative rate of appreciation (future sales price divided by the original purchase price), limited to the Net Proceeds of the sale.

Sponsor: City of Boise

Assistance amount: Up to $45,000

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Income must be between 50% and 80% of Area Median Income
• First lien must be a 30 year fixed rate mortgage
• Buyers that have income from current employment with liquid assets in excess of a cash value of $35,000 will be required to invest assets above $35,000 toward the purchase of the home before receiving assistance
• Maximum LTV is 100%
• Maximum front-end DTI is 38% and maximum back-end DTI is 45%
• Property must be in Boise city limits

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.