Idaho Housing And Finance Associaton First Loan Program
The Idaho Housing and Finance Association (IHFA) has a lot of financing options for first time home buyers. One of the most popular first time home buyer loans is the first loan program. The definition of a first-time home buyer is any person not owning a home within the past three years.
It is an exciting time to be an Idaho first-time home buyer. IHFA has a few different loan programs and options for getting into your new home with little to no money out of your pocket. Luckily for you we have access to Idaho Housing and Finance Associations loan programs. Below are some of the benefits and details for the Down Payment & Closing Cost Assistance that IHFA offers.
Benefits of Idaho Housing Loans
– Low Mortgage Rates
– Down Payment And Closing Cost Assistance
– Low Or No Mortgage Insurance
– Tax Credits Worth Up To $2,000 Per Year
– Homebuyer Education And Free Housing Counseling
– Income Limits Do Apply
Idaho Housing And Finance First Loan Plus Down Payment Assistance
The First Loan Plus down payment and closing cost assistance second mortgage interestrates are tiered by credit score:
• Interest rate is 1% higher than mortgage rate of the first mortgage for borrowers withcredit scores of 680 or higher.
• Interest rate is 2% higher than mortgage rate of the first mortgage rate for borrowerswith credit scores of 620 to 679.
• Borrowers with credit scores of lower than 620 will not be able to obtain this second mortgage.
• Homebuyer education is required for buyers with credit scores lower than 720.
• Maximum amount of second mortgage is 3.5%, or $8,000, whichever is less not toexceed 100% combined loan-to-value.
• Borrowers must contribute at least $500 towards the transaction.
• First Loan Plus funds are based on need. Borrowers’ liquid assets are limited to threemonths payments, or $5,000, whichever is greater. For borrower’s 62 years or older,the liquid assets are limited to three months payments, or $10,000, whichever is greater.
These second mortgages are fixed rates over 30 years making the monthly payment low so borrowers can easily qualify for the loan amount they need.
For example: For a FHA loan with a $200,000 sales price, a down payment assistance second mortgage used in conjunction with a 96.5% loan-to-value Idaho Housing loan could be up to $7,000:
$7,000 @ 5.00% – monthly payment is $37.58
$7,000 @ 6.00% – monthly payment is $41.97
*Information provided from Idaho Housing Website.
When it comes to Idaho Housing Home Loans there are a lot of options available. Feel free to give us a call and we can answer any questions that you may have. At Diversified Mortgage Group in Boise, Idaho we take great pride in offering a wide range of mortgage products and we look forward to sharing them with you on your path to homeownership.
*Please visit our Disclosures page for more details for all loan types