Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance)

What is Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance)?

Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) is a forgivable loan for homebuyers in Idaho, administered by Idaho Housing and Finance Association (IHFA).

• IHFA's forgivable down payment / closing-cost assistance is a deferred soft second mortgage of up to 3% of the lesser of sales price or appraised value, with 0% interest and no monthly payment, forgiven 1/10 per year over 10 years. It is distinct from IHFA's repayable Second Mortgage and can be layered with it for combined assistance up to 10% of the purchase price, requiring as little as $500 of the borrower's own funds.
• 0% interest, no monthly payment.
• Forgiven over 10 years (1/10 per year).
• Up to 3% of price/value forgivable.
• Combinable with IHFA Second Mortgage for up to 10% total DPA.
• As little as $500 borrower contribution.
• Available to repeat as well as first-time buyers.

How much assistance does it provide?

Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) provides assistance worth 3% of the purchase price, as set by the program.

• Buyer contribution: Borrower contributes a minimum of $500 (as little as 0.5% of own funds).
• Amounts are the program's published maximums, not an offer — Idaho Housing and Finance Association (IHFA) determines any individual award.

Do you have to pay it back?

Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Unforgiven balance due on sale or refinance before the end of the 10-year term; forgiven 1/10 per year over the term.
• The assistance is recorded in second 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 Forgivable Loan (Down Payment / Closing Cost Assistance) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) sets its income limit as follows: Household income limits apply (IHFA First Loan program limits). Specific dollar limits by county/household size are published in IHFA's First Loan income-limit tables and not reproduced on the consumer DPA page.

• 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 Forgivable Loan (Down Payment / Closing Cost Assistance) can be used for Single Family, Townhouse, Condo, and Manufactured.

• Manufactured homes are eligible.

Where does it apply?

Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) serves buyers purchasing anywhere in Idaho.

How do you apply?

Applications for Idaho Housing Forgivable Loan (Down Payment / Closing Cost Assistance) go through Idaho Housing and Finance Association (IHFA), 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! (finallyhome.org) homebuyer education..

2. 2

   Contact Idaho Housing and Finance Association (IHFA) 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.