IHFA Tax-Exempt Conventional Low Income
Best For: First Time Homebuyers, Lowest Rates
Conventional tax-exempt mortgage option with below market interest rates and assistance options for Idaho first time homebuyers.
Program Description
The Tax-Exempt Conventional 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.
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IHFA Tax-Exempt Conventional Low Income
Min. Credit Score
620
Min. Down Payment
3%
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
- Below market interest rates available
- Allows up to 50% DTI (Debt-to-Income)
- Also available for manufactured homes
- Available in all of Idaho
- Subject to 80% AMI and household income limits, which vary by county and household size
- Requires private mortgage insurance (PMI)
- Subject to purchase price limits that vary by county
Program Availability
IHFA Tax-Exempt Conventional Low Incomes are available in 1 state.
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“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
50.00%
Purchase Price Limit
$349,000 - $538,000
Income Limit
$57,280 - $74,240
Annual Qualifying 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
- Conventional tax-exempt loan option with reduced mortgage insurance
- Must be a first time homebuyer
- Can be combined with Second Mortgage and/or Forgivable Loan assistance
Additional Conditions
- The Forgivable Loan may be combined with the Second Mortgage for a total of 10% of the purchase price or appraised value.
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits.
- Program is either Freddie Mac HFA Advantage or Fannie Mae HFA Preferred.
- Tax-Exempt mortgages are subject Federal Recapture Tax rules and additional documents and disclosures.
- In addition to IHFA purchase price limits, borrowers must make less than 80% of the Area Median Income (AMI) in order to qualify.
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.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
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%
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 TE Conventional LI program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
IHFA Forgivable Loan
|IHFA TE Conventional LIThe 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
620
Min. Down Payment:
0%
IHFA Second Mortgage
|IHFA TE Conventional LIThe 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 Conventional Targeted Low Income
Best For: First Time Homebuyers, Lowest Rates
Conventional tax-exempt mortgage option with below market interest rates and assistance options for targeted Idaho Counties.
IHFA Conventional HFA Low Income
Best For: First Time Homebuyers, Low Down Payments
Conventional option for low income Idaho repeat homebuyers that can be paired with down payment assistance of up to 7% of the purchase price.
Related Resources
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 More
A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
Read More
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
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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