IHFA Tax Credit Advance for Down Payment Assistance
The American Recovery and Reinvestment Act of 2009 provides a federal tax credit of up to $8,000 for first-time home-buyer’s (or those who have not owned a home in three years). The Idaho Housing and Finance Association (IHFA) just came out with a new program to help buyer’s utilize the tax credit for down-payments/closing costs.
In conjunction with an IdaMortgage loan, a 2nd loan will be offered to qualified home-buyers in the amount not to exceed 5% of the sales price or $7,000. The loan will accrue interest at 3.0% with a due date of July 1, 2010. The 2nd Loan is expected to be paid off from the borrower’s tax refund obtained through the federal tax credit.
Borrower qualifications:
1) Must be a first-time homebuyer,
2) Must have a FICO score of no less than 640, and a total debt ratio of no more than 45%, (NOT including this second mortgage loan payment). Some MI’s may require higher credit scores,
3) Homebuyer qualifies for an IdaMortgage loan, which includes the monthly second mortgage payment in the debt ratios for this Community second loan just like the Good Credit Rewards second loan,
4) Homebuyer Education required.
Search Boise real estate.
Information is not guaranteed. Talk to a lender and CPA to determine eligibility of tax credit.
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Comments
Hi Lyle, thanks for the comment and question. It is a completely separate program from the others you mentioned. If you visit this link: http://www.ihfa.org/idamortgage/loan_program.asp you can see how it differs from the other programs. To see if you qualify you’ll want to contact a lender who does IHFA loans. I have a list of three really good lenders on this page: http://www.boiserealestateplus.com/helpful-links. Hope that helps, let me know if you need anything else.
Dear Jace,
About your posting today; when does this program launch or when can a qualified applicant apply? Is this program separate from Good Credit Rewards and Down Payment Assistance and the (suspended) HOME Down Payment & Closing Cost Assistance Program?
Any information you can provide will be very much appreciated. Thanks, Lyle.