Idaho's Down Payment Assistance Second Mortgage (up to 8%)
IHFA's down payment assistance is a second mortgage worth up to 8% of your home's price, for the down payment and closing costs. It is repayable, small monthly payments over 15 years, not a grant. Here is exactly how it works.
What the IHFA second mortgage is
Idaho’s down payment help works differently from many states, and it is worth understanding clearly. Instead of a grant or a deferred loan you never make payments on, IHFA provides a second mortgage worth up to 8% of your home’s price (or appraised value, whichever is less). You use it for the down payment and closing costs, and you pay it back in small monthly payments over 15 years, alongside your first mortgage. It is a real loan, but a manageable one, and for a buyer who has not saved a full down payment, it is often the difference between renting and owning now.
How much it covers
Up to 8% is generous. On many Idaho homes, that can cover the down payment, and often a good part of the closing costs too. You still bring at least $500 of your own funds into the deal, IHFA requires that, but beyond the minimum, the second can carry most of the cash you would otherwise need up front. Because 8% is a percentage, it goes furthest on Idaho’s more affordable markets (eastern and southeastern Idaho) and still helps meaningfully in higher-priced Boise and Coeur d’Alene.
The honest part: it is repayable
We lead with this because it matters. The IHFA second is not free money, you make a small monthly payment on it for 15 years. That is not a drawback so much as a tradeoff: you get into a home now, start building equity, and pay the assistance back gradually instead of saving for years first. The right question is whether the combined payment, first mortgage plus second, fits your budget, and that is exactly the number we run with you up front. See our grant-or-loan explainer.
Who qualifies
You need income under IHFA’s product limit (up to about $170,000 for some products), the $500 minimum own-funds contribution, and completion of Finally Home! homebuyer education (one certificate per loan). The assistance pairs with an IHFA first mortgage, conventional, FHA, VA, or USDA. Notably, IHFA even allows borrowers without a credit score through manual guidelines. Because the exact income limits vary by product and change, we confirm your current figures with IHFA. See our eligibility page.
Common questions
How much is Idaho's down payment assistance?
IHFA offers a second mortgage worth up to 8% of the sales price or appraised value (whichever is less) for down payment and closing costs. On many Idaho homes that can cover the down payment. It is repayable in small monthly payments over 15 years, with a $500 minimum own-funds contribution.
Do I make payments on Idaho down payment assistance?
Yes. Unlike a grant or a deferred loan, IHFA's second mortgage is repayable, you make small monthly payments on it over 15 years, alongside your first mortgage. We run the full combined payment so you see the real monthly cost before you commit.
What do I need to qualify for the IHFA second mortgage?
Income under IHFA's product limit (up to about $170,000 for some), at least $500 of your own funds, and Finally Home! homebuyer education. It pairs with an IHFA conventional, FHA, VA, or USDA first mortgage. IHFA even allows borrowers without a credit score through manual guidelines.
What can the IHFA second mortgage be used for?
The down payment and closing costs on your home purchase. It provides up to 8% of the price or appraised value (whichever is less), which on many Idaho homes can cover the down payment and part of the closing costs. Confirm current terms with IHFA.
See how much you'd qualify for
Tell us your county, credit range, and price target, and we’ll map your Idaho path in a no-pressure 20-minute call. No obligation.