The Idaho Housing Association offers a loan program that allows qualified buyers to finance up to 97% of the purchase price of a new home. That means you could purchase a new home in Idaho for as little as 3% down! With lending restrictions getting tighter for all loan types, a 3% down payment is the absolute minimum, unless you qualify for special programs such as the VA loan program.
Also known as IdaMortgage, this program also now offers two types of down payment assistance. The first down payment assistance plan is the Good Credit Assistance plan, which allows borrowers to take out a second mortgage up to 5% of the initial mortgage amount. These funds can be used for the down payment, and the borrower can maintain money they have already saved to use for home repairs that may be needed.
Chilco Mountains Image, Copyright Rick McCharles, Flickr Creative Commons
The second type of down payment assistance available through the IHA is called the HOME Down Payment Assistance Program. This program offers borrowers monetary assistance between $1,000 and $20,000, and is available to families with an income less than 80% of the area’s median income. This assistance can also be used to cover closing costs, and is based on a deferred payment schedule at 0% interest that is forgivable over time.
There was an overwhelming request for assistance through the HOME Down Payment Assistance Program, so the IHA expanded available funds for the program but has suspended applications as of January 1, 2009. While we hold out hope that this program will be accepting applications again in the near future, IHA’s Good Credit Assistance Plan and the opportunity to finance 97% of the purchase price of a new home are excellent opportunities that could help put you in a new home within months!
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