IHFA Forgivable + Second Mortgage Combo
Best For: First Time Homebuyers, Zero Down
The Idaho Housing Forgivable Loan and Second Mortgage Combo provides up to 10% down payment and closing cost assistance for your Idaho home purchase.
This loan program is not available in Lynwood, CA
Program Description
The IHFA Forgivable Loan and Second Mortgage Combo Program provides a variety of 30-year fixed-rate first mortgage options combined with down payment assistance of up to 10% of the purchase price or appraised value, whichever is lower (up to 3% can come from the Forgivable Loan and up to 7% from the Second Mortgage). The assistance can be used for single-family, townhomes, condos and manufactured homes.
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IHFA Forgivable + Second Mortgage Combo
Min. Credit Score
620
Min. Down Payment
0.5%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Program Benefits
Benefit type: Up to 10.00% of 1st Loan Amount
Type: Bond Deferred Payment Standard 2nd Mortgage Program - Repayable
The Second Mortgage is a 15-year fixed rate loan of up to 7% of the purchase price or appraised value, and the Forgivable Loan is up to 3% and is a 10-year, no interest, no payment bond—forgiven yearly at a rate of 1/10 over its term.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
- IHFA Tax-Exempt Conventional Targeted Med Income
- IHFA Tax-Exempt Conventional Targeted Low Income
- IHFA Tax-Exempt FHA Loan
- IHFA Tax-Exempt RD Loan
- IHFA Tax-Exempt Conventional Median Income
- IHFA Tax-Exempt Conventional Low Income
- IHFA First Loan RD
- IHFA First Loan FHA
- IHFA Tax-Exempt FHA Targeted
- IHFA Tax-Exempt RD Targeted
Pros & Cons
- Idaho homebuyers can get over the hurdle of saving for a down payment
- No first time homebuyer requirement for many first mortgage programs
- Forgivable Loan portion is fully-forgivable after 10 years
- Second Mortgage portion accrues interest and must be fully repaid over 15 years
- Subject to income limits
Program Availability
IHFA Forgivable + Second Mortgage Combos are available in 1 state.
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“The Idaho Housing Combo DPA can provide up to 10% in additional funds to secure your home purchase."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
$349,000 - $538,000
Income Limit
$78,579 - $98,548
Annual Household (1-2) Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Assistance of up to 10% of price or appraised value is available
- First time and repeat homebuyer options
- Borrowers must contribute at least .5% of their own funds
Additional Conditions
- The Second Mortgage comes in the form of a 15-year fixed rate loan of up to 7% of the purchase price or appraised value, with an interest rate set by IHFA (subject to change).
- The Forgivable Loan comes in the form of a 10-year, no interest, no payment, deferred soft second mortgage—forgiven yearly at a rate of 1/10 over the term of the loan.
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits.
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: Finally Home!® Homebuyer Education Program
Finally Home!® is IHFA's homebuyer education program designed to help potential homebuyers understand the process and make informed decisions. The program covers topics such as home affordability, financing options, and the home-buying process. The course costs $70, with discounts available. There are online and in-person options available. The course is required for at least one borrower.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5% 0.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
IHFA Forgivable Loan
Best For: First Time Homebuyers, Zero Down
The Idaho Housing Forgivable Loan provides up to 3% down payment and closing cost assistance for your Idaho home purchase.
IHFA Second Mortgage
Best For: First Time Homebuyers, Zero Down
The Idaho Housing Second Mortgage provides up to 7% down payment and closing cost assistance for your Idaho home purchase.
Related Resources
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2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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