Down payment assistance in Idaho

Idaho's primary statewide down payment assistance program, run by Idaho Housing and Finance Association. Numbers and eligibility reflect the program's published 2025 guidelines.

First Loan + Forgivable Second

Forgivable second
Idaho Housing and Finance Association
Maximum assistance
Up to 7% of loan amount as a forgivable second (forgiven over 7 years)
Income limit
Up to $135,000 (varies by program)
Home price limit
Up to county-specific cap
First-time buyer
Not required
Eligible loan types
FHA, VA, USDA, Conventional
  • Forgivable second mortgage - no payment, no interest. 1/7 forgiven each year.
  • Tied to the IHFA First Loan first-mortgage product.

How Idaho DPA fits into your purchase

Down payment assistance reduces the cash you need at the closing table. Idaho's First Loan + Forgivable Second pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.

Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.

Common questions

What down payment assistance is available in Idaho?

Idaho's primary statewide DPA is First Loan + Forgivable Second from Idaho Housing and Finance Association. Up to 7% of loan amount as a forgivable second (forgiven over 7 years). Many Idaho cities and counties also run additional DPA layered on top.

Do I have to be a first-time buyer?

No. The First Loan + Forgivable Second is open to both first-time and repeat buyers, subject to income and home-price limits.

Can I combine state DPA with FHA, VA, USDA, or conventional?

Yes. First Loan + Forgivable Second works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.

Does the DPA show up as debt that hurts my approval?

Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.

What if I sell or refinance soon after closing?

If you sell or refinance before the forgiveness period ends, you typically have to repay the unforgiven portion.

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