Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage)

What is Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage)?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) is a first mortgage for homebuyers in Idaho, administered by Idaho Housing and Finance Association.

• The First Loan Tax-Exempt is Idaho Housing's mortgage revenue bond first-mortgage product offering first-time homebuyers below-market interest rates, often up to 1% lower than other loan programs. Because it is financed with tax-exempt bonds under IRC Section 143, it carries first-time-homebuyer, county income, and county sales-price limits, and a potential federal recapture tax if the home is sold within nine years at a gain by a borrower whose income has risen above the limit. It can be combined with Idaho Housing down payment and closing-cost assistance, letting buyers purchase with as little as 0.5% of their own funds.
• Interest rates often up to 1% lower.
• Available with Conventional/FHA/VA/USDA.
• Can be combined with Idaho Housing DPA.
• Higher limits and waived FTHB rule in targeted counties.
• Statewide via IHFA-approved lenders.
• Funding comes from Tax-exempt Mortgage Revenue Bonds (MRBs) issued by IHFA under IRC Section 143.

Do you have to pay it back?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) is a first mortgage and is repaid under the terms set by Idaho Housing and Finance Association.

• Repayment is triggered by Recapture tax may apply if the home is sold within the first 9 years AND the borrower realizes a capital gain AND modified adjusted gross income at sale exceeds the program's adjusted income limit.
• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) sets its income limit as follows: Income limits by county and household size for First Loan Tax-Exempt (effective 5-6-26): 1-2 person households roughly $101,600-$143,160; 3+ person roughly $116,840-$167,020 depending on county. Annual gross household income used.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) caps the purchase price as follows: Home sales price limits set per county (effective 5-6-26), ranging from $566,354 in many non-targeted counties up to $970,629 in Lincoln County.

• Eligible property types include Single Family, Condo, Townhouse, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) serves buyers purchasing anywhere in Idaho.

• The program targets specific areas: Idaho designates targeted counties (e.g. Adams, Bear Lake, Benewah, Bingham, Boise, Bonner, Boundary, Canyon, Cassia, Clark, Clearwater, Custer, Gem, Gooding, Idaho, Jefferson, Jerome, Kootenai, Lemhi, Lewis, Lincoln, Oneida, Owyhee, Payette, Shoshone, Washington). In targeted counties the FTHB requirement is waived and higher income/sales price limits apply.

How do you apply?

Applications for Idaho Housing First Loan Tax-Exempt (Mortgage Revenue Bond First Mortgage) go through Idaho Housing and Finance Association, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Finally Home! (IHFA homebuyer education, finallyhome.org).

2. 2

   Contact Idaho Housing and Finance Association to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.