Home ownership in Idaho is pretty much the same as it is in any other state. However, where first time home buyers are concerned, Idaho does have some unique aspects which make buying a first home somewhat easier. Through state-funded programs, local down payment assistance programs, and other types of low-cost loans and grants, first time home buyers in Idaho have plenty of resources to look at.
If you're an Idaho resident searching for your first home you might want to look into such first time home buyer programs as early in the process as possible. Working with a mortgage broker rather than directly with the local bank officer might be a better option if you plan to access first time home buyer’s assistance. Your real estate agent will also be able to direct you to much of the information you need regarding financial assistance.
The Idaho Housing and Finance Association (IHFA)
Like most other states, Idaho's legislature authorized the establishment of the IHFA with the mission of administering housing programs aimed at low and moderate income families. What's different about the IHFA is the fact that they operate independently of state government. The organization is a nonprofit, quasi-public organization which receives no government assistance either at the state or federal level. The IHFA is responsible for raising all the funds necessary to cover the cost of day-to-day operations.
Being structured this way allows the IHFA to administer housing programs with as few government strings as possible. It is responsible for acting as the sole agent of HUD programs in the state, and works in concert with banks, mortgage houses, and other appropriate lending institutions. IHFA's primary vehicle for helping first time home buyers is a program called IdaMortgage.
IdaMortgage
The IdaMortgage loan program is a group of eight different loan packages aimed at various needs. Only one of them, the First Loan program, is available to first time home buyers in Idaho. First Loan provides a 30-year, fixed-rate mortgage with an interest rate the IHFA claims is the lowest in the industry. Like any housing assistance program, First Loan carries with it certain income and sales price restrictions.
In addition, the home buyer must be a resident of the state of Idaho and must make the purchased home his primary residence within 14 days of closing. In 17 of the 44 counties in the state, applicants cannot have owned a home within three years of applying for the First Loan program. Finally, the applicant must demonstrate a fairly good employment history as well as a good credit score.
HOME Down Payment Closing Cost Assistance Program
This is a new program offered by IHFA to provide first time home buyers with assistance in funding closing costs and down payment. Among state DAP's it has some of the fewest restrictions in the country. However, the restrictions that apply include a requirement that the home being purchased be either vacant at the time of sale or owner occupied. Only borrowers whose income is 80% or less than the median are considered for this program and there are purchase price restrictions.
Assistance can be had for up to 3.5% of the purchase price of the home, not to exceed a total of $8,000. A minimum $1,000 is provided to all approved applicants who must themselves provide a minimum of $500 towards the purchase at time of closing. They must also complete a free home buyer’s educational program upon approval.
Grant Programs
As an agent working on behalf of HUD, the IHFA occasionally receives block grant money from the federal agency which it administers in a variety of ways. Those grants set aside for first time home buyers will have very stringent income requirements as well as some other restrictions. These grants are not available on a continual basis, so it is advisable to check with your mortgage professional and possibly keep track of opportunities on your own.
From time to time local municipalities also provide grants in concert with low-cost mortgages as a means of selling and rehabilitating older homes. These programs are a good way for cities to help in the fight against blight and urban abandonment. Local programs are usually very restrictive in terms of residency requirements, rehabilitation guidelines, and more. Your real estate agents and mortgage broker should be able to give you all the details about any local programs available in Idaho.
The following is a short list of local DAP's in several Idaho localities:
- Boise/Ada County Assisted Home Ownership Program (AHOP) - up to $25,000 - (208) 345-4907
- Idaho Neighborhood Housing Service of Boise Community Development Financial Institution (CDFI) - up to $25,000 - (208) 343-4065
- Idaho Neighborhood Housing Services of Boise, NRC Pilot Grant - up to $2,500 - (208) 343-4065
- Pocatello Neighborhood Housing Services Home Ownership Program (HOP) - up to $25,000 - (208) 232-9468