Second Mortgage

What is Second Mortgage?

Second Mortgage is a repayable second loan for homebuyers in Statewide, Idaho.

• The IHFA Second Mortgage Program is Idaho Housing's standard repayable down payment and closing-cost assistance product. It provides up to 7% of the lesser of sales price or appraised value as a 15-year amortizing second mortgage at the first-mortgage rate plus 2.00%, paired with a 30-year fixed-rate IHFA first mortgage (FHA, VA, USDA, or Conventional). Open to all qualifying Idaho homebuyers; no first-time-homebuyer requirement; income up to $170,000; minimum $500 borrower contribution; Finally Home! Homebuyer Education required.
• Repayable second-mortgage DPA of up to 7% of the lesser of sales price or appraised value, paired with an IHFA 30-year fixed-rate first mortgage. Funds may be used toward down payment AND/OR closing costs. Borrower contributes as little as $500 of their own funds. No first-time-homebuyer requirement. Income limit $170,000 statewide. Second mortgage repaid via small monthly payments alongside primary mortgage over a 15-year term. Second-mortgage rate = first-mortgage rate + 2.00%.
• Funding comes from State, HFA, and Bond.

How much assistance does it provide?

Second Mortgage provides assistance worth 8% of the purchase price, as set by the program.

• Buyer contribution: Borrower contributes at least $500 of own funds toward the loan transaction.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Second Mortgage is a repayable second loan and is repaid under the terms set by the administering agency.

• Repayment is triggered by Monthly amortizing payments over 15 years alongside primary mortgage and balance due at sale, refinance, or non-occupancy.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Second Mortgage is open to buyers who will live in the home as their primary residence.

What are the income limits?

Second Mortgage limits household income to $170,000.

• 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?

Second Mortgage caps the purchase price as follows: No published statewide purchase price cap on second mortgage; first-mortgage product limits apply.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (per first-mortgage product), manufactured (per overlays).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Second Mortgage serves buyers purchasing in Statewide, Idaho.

• The program targets specific areas: IHFA designates federally qualified target areas with relaxed first-time homebuyer and income limits; see IHFA Lender Connection for current target-area census tracts.

How do you apply?

Applications for Second Mortgage go through the administering agency, 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! Homebuyer Education (IHFA's education program; required) - online or in-person; finallyhome.org.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Loan officer reserves funds via Idaho Housing's Lender Connection portal at time of loan locking; subject to bond/program funding availability., 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.