IHFA Tax-Exempt RD Loan
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Tax-Exempt RD rural development loan program for Idaho first time homebuyers with below market interest rates and down payment assistance options.
This loan program is not available in USA
Program Description
The Tax-Exempt Rural Development (RD) Loan Program can be combined with the IHFA Second Mortgage and/or Forgivable Loan Down Payment Assistance Programs, which provide additional funds ranging from 0.5% to 10% of the purchase price or appraised value. "Tax-Exempt" mortgages are a type of bond an organization can offer that are exempt from Federal and other taxes, which results in a lower interest rate for the borrower. It can only be used in approved Idaho USDA rural areas.
Tags
Do you match this loan?
Our loanSMART system will tell you if this loan program is a good fit your scenario.
IHFA Tax-Exempt RD Loan
Min. Credit Score
640
Min. Down Payment
0%
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.
Pros & Cons
- Assistance available, between 0.5% and 10% of price or value
- Available in all of Idaho
- Allows up to 41% DTI (Debt-to-Income)
- Subject to income and purchase price limits
- Only available in Idaho USDA rural areas
- Requires the USDA funding and annual fees
Program Availability
IHFA Tax-Exempt RD Loans are available in 1 state.
*Limited Availability: There are parts of Idaho that don’t qualify for a USDA Loan. To verify property or area eligibility, visit the official USDA website at https://eligibility.sc.egov.usda.gov/eligibility/.
Talk to an Expert
An RMM PROLender can help you see if this or a different loan program is the right fit for your unique situation. Get Started.
“IHFA's tax-exempt mortgage options have some of the lowest rates available in the state, so if you're a first time homebuyer that meets the income and purchase price limits for the program definitely check it out."
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
41.00%
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.
Buying a Home?
Answer a few short questions and we'll build you a custom list of home loan program options. You're homeownership journey is in good hands.
Key Features
- Tax-Exempt RD rural development loan with below market rates
- Must be a first time homebuyer
- Can be combined with Second Mortgage and/or Forgivable Loan assistance
Additional Conditions
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits.
- The Forgivable Loan may be combined with the Second Mortgage for a combined total of 10% of the purchase price or appraised value.
- Tax-Exempt mortgages are subject Federal Recapture Tax rules and additional documents and disclosures.
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: USDA Gurantee Fee
The USDA loan program requires the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.00% of the loan amount and can be financed into the loan.
Type: USDA Annual Fee
The USDA loan charges an annual fee based on the total remaining balance of the mortgage at a .35% rate.
Estimated Closing Costs: 2.5%
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.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this IHFA Tax-Exempt RD program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
IHFA Forgivable Loan
|IHFA Tax-Exempt RDThe Idaho Housing Forgivable Loan provides up to 3% down payment and closing cost assistance for your Idaho home purchase.
Max. Loan Amount
$726,200
Min. Credit Score
640
Min. Down Payment:
0%
IHFA Second Mortgage
|IHFA Tax-Exempt RDThe Idaho Housing Second Mortgage provides up to 7% down payment and closing cost assistance for your Idaho home purchase.
Max. Loan Amount
$726,200
Min. Credit Score
620
Min. Down Payment:
0%
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 Tax-Exempt RD Targeted
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Tax-Exempt RD rural development loan program for targeted Idaho Counties with below market interest rates and down payment assistance options.
IHFA RD Purchase Loan
Best For: First Time Homebuyers, Zero Down
RD rural development loan program for Idaho residents with competitive interest rates and down payment assistance options.
Related Resources
Tips for a Simple Loan Approval
Believe it or not, following these simple tips can not only make or break your home buying experience, but it can also either save or cost you valuable time and money. If you aren’t completely sure if something you’re planning to do will help or hurt the status of your loan approval, you should always contact your loan officer to advise before you act.
Read More
2023 USDA Loan Guide
The U.S. Department of Agriculture is a complex, multifaceted entity that wears multiple hats. Under this umbrella is Rural Development, an agency part of USDA with the ultimate goal to help improve the economy and quality of life for Americans living in rural communities.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
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
Mortgage Program by:
ReviewMyMortgage.com is in no way affiliated with the companies or institutions listed here.
Start Your Journey
Whether your are buying a new home, or refinancing your current home loan, let the experts at Review My Mortgage guide you on your homeownership journey.
Are you a mortgage professional?
Learn about our unique sponsorships, including RMM PROLender, that can take your production to the next level.
Get in Touch