IHFA Down Payment & Closing Cost Assistance

Idaho Housing and Finance Association (IHFA)

Program Summary

15-year fixed-rate second mortgage up to 8% of the lesser of sales price or appraised value (within MI LTV/CLTV limits). Interest rate = first mortgage rate plus 2.00%. Toward down payment and/or closing costs. Finally Home!® homebuyer education required. Purchase transactions for the standard 15-year product. Minimum $500 of the borrower's own funds required. Open to first-time and repeat buyers. Household income up to $170,000 (exceptions on specialized First Loan Tax Exempt products). Manufactured homes allowed per agency guidelines.

Eligibility Requirements

How to Apply

1. 1Complete Finally Home!® homebuyer education at finallyhome.org (required for IHFA DPA).
2. 2Find an IHFA-approved lender (directory at idahohousing.com/homebuyers/find-a-lender/).
3. 3Get pre-approved for an IHFA first mortgage (Conventional, FHA, VA, USDA/RD, or HFA Preferred).
4. 4Tell your lender you want IHFA down payment and closing cost assistance.
5. 5Contribute at least $500 of your own funds into the transaction.
6. 6Both loans close simultaneously — up to 8% assistance applied at closing.

Required Documents

• Finally Home! homebuyer education certificate
• Income verification (household income ≤ $170,000)
• Proof of $500 minimum borrower contribution
• IHFA first mortgage pre-approval

Contact Information

Last verified: 2026-05-26