IHFA's Down Payment Assistance Tax Credit Advance - TAX CREDIT 2nd LOAN

The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time homebuyers of 10% of the sales price, up to a maximum of $8,000. This tax credit is available to qualified home buyers who purchase a home by December 1, 2009. In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term Tax Credit 2nd Loan to qualified buyers.

In conjunction with an IdaMortgage loan, a subordinate loan will be offered to qualified borrowers of up to $7,000, not to exceed 100% CLTV at 3.0% interest and with a due date of July 1, 2010. The Tax Credit 2nd Loan is expected to be paid off from the borrowers tax refund obtained through use of the federal tax credit.

Borrower qualifications are:

1) first time homebuyer (Has not owned a home in at least 3-years) 

2) FICO score of no less than 640, and a total debt ratio of no more than 45% ,

3) completed certification from the home buyer and a qualified tax preparer that he/she expects a tax refund of at least the amount of the loan, and

4) qualifies for an IdaMortgage loan. First time homebuyers with credit scores of 700+ will not be required to produce a certification.

Idaho Housing and Finance Association (visit www.ihfa.org)