Idaho Down Payment Assistance 2025/2026: The Complete Guide

Down Payment Assistance | Closing Cost Assistance | Grants

Idaho Down Payment & Closing Cost Assistance: 2025-2026 Guide

Buying a home is exciting, but the upfront costs can feel overwhelming. If you are tired of renting but don’t have $20,000 saved for a down payment, you are in the right place.

Here is the secret: You don’t always need 20% down. In fact, with Idaho Housing and Finance Association (IHFA) programs, many of our clients in Boise, Meridian, and Nampa buy homes with little to NO cash out of pocket.

At 1st Choice Mortgage, we are an approved IHFA lending partner. We help first-time buyers (and local heroes!) connect with low-interest second mortgages that bridge the gap between your savings and the closing table.

🚀 2026 Updates: New Loan Limits!

1. The “Second Mortgage” Program (Standard)

This is the primary assistance option for most Idaho homebuyers. It provides a significant amount of cash to cover your upfront costs.

• Benefit: Get up to 8% of the purchase price.
• Use of Funds: Can be used for down payment AND/OR closing costs.
• How it Works: This is a repayable second mortgage with a 15-year term.
• Strategy: Perfect for buyers who have the monthly income to support a home loan but haven’t saved enough cash for the upfront check.
• Minimum Contribution: You generally only need to contribute $500 of your own money.

2. Idaho Heroes Program 🦸

Are you a teacher, nurse, firefighter, police officer, or veteran? Idaho wants to help you own a home in the community you serve.

• Benefit: Special interest rates and up to 8% assistance.
• Use of Funds: Can be used for down payment AND/OR closing costs.
• Eligibility: Nurses, Teachers, Law Enforcement, Firefighters, Paramedics, and Military.
• Bonus: Often comes with reduced mortgage insurance premiums, saving you money every month.

📝 Who Qualifies for Idaho Down Payment Assistance?

While each program has slight variations, here are the general requirements for 2025-2026:

• Credit Score: You typically need a minimum credit score of 620 for conventional and 580 for FHA.
• Income Limit: Your total household income must be under $170,000.
• Homebuyer Education: You must complete the Finally Home! online education course.
• Occupancy: You must live in the home as your primary residence (no rentals or vacation homes).
• DTI Ratio: Your Debt-to-Income ratio typically needs to be under 45-50%, depending on the specific loan program.  55% for FHA.

❓ Frequently Asked Questions (FAQ)

Do I have to pay the money back?

Yes. The current IHFA assistance options are low-interest second mortgages, not free grants. You will make two payments each month: one for your main home loan and a smaller one for the down payment loan.

Do I have to be a “First-Time Buyer”?

For many programs, NO. However, the definition of “First-Time Buyer” is anyone who hasn’t owned a home in the last 3 years. If you owned a home 5 years ago but rent now, you likely qualify!  Or certain Counties waive the 1st Time Home Buyer program requirements.  Call 1st Choice TODAY for more details.

Can I combine this with an FHA Loan?

Yes! Pairing the FHA Loan (3.5% down) with Idaho Housing assistance is a classic strategy. The assistance covers your down payment, leaving you with very little to pay at closing.

📞 Ready to Check Your Eligibility?

These programs have rules that change annually. Don’t guess - let us run the numbers for you.

Contact 1st Choice Mortgage today. We can check your income, credit, and eligibility in minutes.

👉 Click Here to Apply for Assistance

2nd Mortgage Conventional Loan Program

• Get up to 8% of the purchase price as a low-interest second mortgage

• Funds can be used for down payment or closing costs

• Available to first-time and repeat buyers

• Designed as a second mortgage alongside a Conventional loan

• Minimum credit score: 620

• Borrower must bring at least $500 to closing

• Can be combined with a forgivable grant

• Income limit: Up to $170,000 (as of 01/01/2025)

2nd Mortgage FHA Loan Program

• Receive up to 8% of the purchase price through a low-interest second mortgage

• Funds can be used for down payment or closing costs

• Available to first-time and repeat buyers

• Works as a second mortgage paired with an FHA or Conventional loan

• Minimum credit score: 580

• Borrower must contribute at least $500 at closing

• Can be combined with a forgivable grant for extra savings

• Income limit: Up to $170,000 (as of 01/01/2025)

Heroes Down Payment Assistance Program

• Get up to 7% of the purchase price through a low-interest second mortgage

• Funds can be used for down payment or closing costs

• Available to community heroes: nurses, teachers, firefighters, police officers, and paramedics

• In some Idaho counties, repeat buyers may also qualify

• Works as a second mortgage

• Compatible with Conventional, FHA, and USDA loans

• Can be combined with a forgivable grant for even more savings

Program guidelines and income limits may change without notice. For the most accurate and up-to-date details - including eligibility and restrictions - contact 1st Choice Mortgage today