IHFA Tax Credit Advance for "0" 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. (Click Here & Scroll Down To "Down Payment and Closing Cost Assistance Available") 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.

Information is not guaranteed.  Talk to a lender and CPA to determine eligibility of tax credit and down payment assistance.