Idaho Housing Down Payment Assistance Forgivable Loan

The Idaho Housing down payment assistance forgivable loan is a great opportunity for Idaho home buyers seeking help with down payments and closing costs. Additionally, in specific situations, you can pair this forgivable loan with an Idaho Housing Second Mortgage.

Let’s break down everything you need to know about the Idaho Housing Forgivable Loan, including eligibility criteria, advantages, and how to begin the process.

What are the terms of the Idaho Housing Forgivable Loan?

This forgivable loan offers tiered forgiveness of 10% per year. Moreover, your initial loan interest rate will increase by 0.25% for each 1% of assistance utilized. However, if you opt for an Idaho Heroes loan, this increase is halved.

What’s the maximum amount of down payment assistance?

The forgivable loan can cover up to 3% of the sales price or appraised value, whichever is lower.

Can I combine the forgivable loan with an Idaho Housing second mortgage?

Yes, provided you opt for the Idaho Heroes second mortgage or if you’re a first-time homebuyer. The combined assistance should not exceed 10%.

Is home buyer education mandatory for the Forgivable Loan?

Yes, completing the Finally Home! Homebuyer Education is a requirement.

What is the minimum buyer contribution for the Forgivable Loan?

Buyers must contribute at least 0.5% of the purchase price from their own funds to qualify for the 15 Year Second Mortgage.

How can I check if I qualify for the Forgivable Loan?

Stairs Financial can assist you in connecting with a lender to assess your eligibility for the Idaho Housing 15 Year Second Mortgage and various other homebuyer programs offering down payment assistance and additional benefits.