Idaho Housing Advantage Loan Program Guide

Guide to the Idaho Housing Advantage Loan Program

The Idaho Housing Advantage Loan Program is designed to help eligible first-time homebuyers and residents of Idaho access affordable home financing. This program offers a competitive interest rate and lower monthly payments, helping you achieve homeownership in Idaho. For 2025, the program continues to provide financial support for purchasing a home, with updated eligibility requirements and benefits. Below is an overview of the program, including eligibility criteria and how to apply.

1. Program Overview:

• Purpose: The Idaho Housing Advantage Loan Program is designed to offer affordable home loans to first-time homebuyers and qualifying individuals in Idaho. The program helps lower the upfront costs and monthly payments, making it easier for residents to purchase a home in the state.
• Loan Terms: The program offers a 30-year fixed-rate mortgage with a low interest rate. This ensures that borrowers can enjoy predictable payments and a stable loan term, making homeownership more affordable in the long run.
• Down Payment Assistance: The Idaho Housing Advantage Loan Program may also provide down payment assistance to qualified buyers. This can help reduce the financial burden of purchasing a home by covering some of the initial costs involved in the homebuying process.

2. Eligibility Requirements for 2025:

To qualify for the Idaho Housing Advantage Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily for first-time homebuyers, which are typically defined as individuals who have not owned a home in the past three years. Some exceptions may apply for certain categories, such as qualifying veterans or those purchasing in designated areas.
• Income Limits: The applicant’s household income must fall within the program’s limits, which are based on the area median income (AMI) for the county or city in which the home is being purchased. These limits are updated annually to reflect local housing market conditions.
• Credit Score: A minimum credit score of 640 is generally required for the program. However, some flexibility may be available based on other factors, such as the applicant's financial history or debt-to-income ratio.
• Property Requirements: The home being purchased must be located in Idaho and must be used as the applicant’s primary residence. The property must also meet the program’s price limits to ensure it remains affordable for first-time buyers.
• Homebuyer Education: Applicants are required to complete a homebuyer education course. This ensures that buyers are prepared for the responsibilities of homeownership and have the knowledge to manage their mortgage and finances.

3. How to Apply:

Applying for the Idaho Housing Advantage Loan Program is straightforward. Follow these steps to begin the process:

• Assigned Loan Officer: After expressing interest in the program, a dedicated loan officer will be assigned to guide you through the application process. The loan officer will assist with verifying your eligibility and help gather the necessary documents.
• Required Documentation: Be prepared to submit documentation such as proof of income, credit reports, tax returns, and a certificate of completion for the homebuyer education course.
• Submit Your Application: Once you have gathered the necessary documentation, submit your completed application to your loan officer. They will review your application, confirm your eligibility, and inform you of the next steps in the process.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of a homebuyer education course is required for all applicants. This course ensures that buyers are fully prepared for the financial aspects of homeownership and understand the responsibilities of owning a home.
• Course Availability: The course is available both online and in-person, allowing applicants to choose the format that fits their schedule. Upon completion, you will receive a certificate that must be submitted as part of your application.

5. Down Payment Assistance:

• Assistance Amount: The Idaho Housing Advantage Loan Program offers down payment assistance to help with the initial costs of purchasing a home. The amount of assistance varies depending on the buyer’s financial need and the home being purchased.
• Repayment Terms: The down payment assistance is typically provided as a deferred loan or grant, meaning you may not have to repay it immediately. The terms of repayment, including any deferred payments or forgiveness conditions, will vary based on the loan agreement.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will guide you through the final steps, including reviewing and signing the loan documents and preparing for the closing process.
• Closing Costs: While the Idaho Housing Advantage Loan Program covers down payment assistance, you may still be responsible for some closing costs. Your loan officer will provide a breakdown of all costs involved and clarify which fees are covered by the program and which are your responsibility.

Our dedicated loan officers are committed to assisting you throughout the entire process. From application to closing, they will ensure that you fully understand the terms of the Idaho Housing Advantage Loan Program and provide the support you need to confidently move forward with your home purchase. With their expertise, you can take advantage of the program and achieve your goal of homeownership in Idaho.