Idaho First-Time Home Buyer Programs

If buying a first home feels like a stretch, you might benefit from a first-time home buyer program offered nationally or within the state of Idaho. A variety of loan and grant programs are available to put homeownership within reach for residents of the Gem State.

National first-time home buyer programs

Offered by most lenders, these nationally available loans have low down payment requirements, which makes qualifying easier for many first-time buyers.

Idaho Housing first-time home buyer programs

The Idaho Housing and Finance Association offers purchase and refinance loans through a network of approved lenders for first-time and repeat home buyers, as well as down payment and closing costs assistance. The association’s home buyer tax credit program is available statewide to first-time buyers and repeat buyers in specific counties. In Idaho, you’re considered a first-time buyer if you haven’t owned a primary residence in at least three years.

Idaho Housing highlights and eligibility requirements

Highlights

• Offers competitive interest rates for purchase and refinance mortgages.

• Down payment and closing cost assistance available.

• Some loan programs have reduced mortgage insurance requirements.

• Tax credit program is open to repeat home buyers in targeted counties and first-time buyers in all counties.

Eligibility

• Meet income and purchase price limits in your county.

• Have a minimum credit score of 620 (this requirement is higher for some programs).

• Complete a home buyer education course. One of the partners in a couple must complete the course if both are first-time home buyers.

• Work with a lender approved by the Idaho Housing and Finance Association.

» MORE: The best homeowners insurance in Idaho

Fannie Mae HFA Preferred

Best for:

Low down payment, low mortgage insurance requirement, down payment assistance, closing cost assistance

What you need to know:

This program allows for a down payment as low as 3% for first-time and repeat home buyers, and may be combined with down payment assistance and/or a mortgage credit certificate. Mortgage insurance requirements may vary based on borrower income. Home buyer education may be required if both borrowers are first-time home buyers or down payment assistance is used.

Freddie Mac FHA Preferred

Best for:

Down payment assistance, closing cost assistance, low down payment, low mortgage insurance requirement

What you need to know:

This program allows for a down payment as low as 3% for first-time and repeat home buyers, and may be combined with down payment assistance and/or a mortgage credit certificate. Mortgage insurance requirements may vary based on borrower income. Home buyer education may be required.

First Loan FHA/VA/RD program

Best for:

Low down payment, low mortgage rates

What you need to know:

Idaho Housing’s First Loan programs offer FHA, VA or USDA "Rural Development" mortgages with reduced interest rates to buyers who have not owned a home in the state’s “non-targeted” counties in the past three years. Sale price and income limits apply to all versions of this loan program, and eligible property types may include manufactured homes. Homebuyer education is required for those who get assistance with down payments and closing costs. The state’s homebuyer tax credit program is not available under any version of the First Loan program.

Forgivable Loan for Down Payment/Closing Costs

Best for:

Down payment assistance, closing costs assistance

What you need to know:

Available for purchase and certain refinance loans through Idaho Housing, this program provides a grant to help with a down payment and closing costs. The assistance is in the form of a zero-interest forgivable loan. After four years, the loan starts being gradually forgiven. After seven, the loan is completely forgiven if the program’s terms are met. Borrowers must contribute 0.5% of the sales price toward the home purchase.

Second Mortgage for Down Payment/Closing Costs

Best for:

Down payment assistance, closing costs assistance

What you need to know:

This program provides a loan at 5% interest over 10 years to help with a down payment and closing costs. Borrowers could qualify for a loan of up to 3.5% of the property’s sales price or appraisal value (whichever is less), but it depends on the type of mortgage chosen. Borrowers must contribute at least 0.5% of the sales price toward the home purchase.

Homebuyer Tax Credit (MCC)

Best for:

Tax credit

What you need to know:

This tax credit is open to all Idaho first-time home buyers and repeat buyers in targeted counties. The program lets a home buyer get a federal tax credit of up to $2,000 annually for mortgage interest paid each year.

Your next step

You can read more about Idaho home buyer programs and check your eligibility by filling out a form on Idaho Housing's website. To apply, you’ll need to work through a participating lender. After searching by location or for a specific company, you can start shopping. For more information on how to weigh options, see our tips for finding the best mortgage lender.