Boise Down Payment Assistance and First-Time Homebuyer Programs

Boise is one of the fastest growing cities in America, and for good reason. There’s great access to outdoor recreation, high quality of life, and relatively affordable cost of living. Young homebuyers are moving to The City of Trees for its unique mix of urban attractions and rural beauty.

The average home price in Boise is over $450,000, so many first-time home buyers could need help to afford to buy in Boise. Luckily, there are several down payment assistance opportunities and home buyer programs that can help.

If you take advantage of these programs, you could potentially buy your first home in Boise without spending months or years saving up for a down payment. 

Down payment assistance programs in Boise

Down payment assistance and first time home buyer programs aim to help home buyers make a larger down payment, cover closing costs, or a combination of both. There are several types of home buyer benefits, including grants, forgivable loans, and interest rate reductions and tax credits.

A grant is similar to a scholarship for college. You apply, and if you qualify for the program (i.e. meet all the criteria and the entity still has the money), you can receive funds toward your down payment or for another upfront cost related to your home purchase. 

A down payment loan (or second mortgage loan) is a loan you acquire in order to have the funds for a down payment. Many loan types require a minimum down payment between 3% and 20%. If you don’t have this money saved (many first-time home buyers don’t) then a down payment loan is an option to help you qualify. Some loans are even forgivable if you meet certain requirements like staying in the home for a few years.

Less commonly, some programs come with lower interest rates and tax credits (e.g., mortgage credit certificates) to help lower your monthly payments.

City of Boise Homeownership Opportunity Program

The City of Boise is committed to helping first time home buyers buy homes. Their City of Boise Homeownership Opportunity Program is an innovative collection of home ownership policies that support young home owners in Idaho.

Assistance type: Deferred mortgage, subject to recapture on sale or transfer. Amount due is the original assistance times the cumulative rate of appreciation (future sales price divided by the original purchase price), limited to the Net Proceeds of the sale.

Sponsor: City of Boise

Assistance amount: Up to $45,000

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Income must be between 50% and 80% of Area Median Income
• First lien must be a 30 year fixed rate mortgage
• Buyers that have income from current employment with liquid assets in excess of a cash value of $35,000 will be required to invest assets above $35,000 toward the purchase of the home before receiving assistance
• Maximum LTV is 100%
• Maximum front-end DTI is 38% and maximum back-end DTI is 45%
• Property must be in Boise city limits

Statewide down payment assistance programs available in Boise

If you’re looking to buy in Boise, you can also take advantage of statewide Idaho-based programs to buy your new home and save on your down payment and closing costs.

Idaho HFA Standard Affordable Housing: Forgivable Loan

Assistance type: Forgivable Loan. Tiered forgiveness of 10% per year and fully forgivable at the end of year 10. Tiered interest rate.

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 3% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Borrower must be a first time home buyer
• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Any unforgiven balance will be due and payable upon sale or refinance

Idaho HFA Standard Affordable Housing: 15 Year Second Mortgage

Assistance type: 15 year fixed rate loan. Interest rate is 2% more than the rate on the first mortgage

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 7% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: 0.5% of the purchase price

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Cannot exceed the maximum LTV / CLTV approved by mortgage insurance

Idaho HFA Standard Affordable Housing: Heroes 15 Year Second Mortgage

Assistance type: 15 year fixed rate loan. Interest rate is 2% more than the rate on the first mortgage

Sponsor: Idaho Housing and Finance Association

Assistance amount: Up to 7% of the lesser of the purchase price or appraised value

Purchase price limit: As established by agency guidelines

Minimum borrower contribution: None

Minimum credit score: As established by agency guidelines

Eligibility requirements:

• Available for purchase loans only
• Finally Home! Homebuyer Education is required
• Cannot exceed the maximum LTV / CLTV approved by mortgage insurance

National down payment assistance programs and grants you can use in Boise

Whether you’re purchasing a home in Boise, or elsewhere in the US, you might be eligible for down payment assistance sponsored by the National Homebuyer Fund. We’ve included details about the program below. 

NHF Down Payment Assistance Program

The NHF Down Payment Assistance Program provides a down payment assistance loan which can be forgiven if the home is your primary residence for a certain number of years. The number of years required to forgive the loan is determined at closing.

Assistance type: Forgivable loan

Sponsor: National Homebuyer Fund

Assistance amount: up to 5% down payment, no fixed maximum

Purchase price limit: Flexible, based on buyer’s income

Minimum borrower contribution: None 

Eligibility requirements: 

• Credit (FICO) score of 600 or higher
• Income limit: 115% of median income in area where home is purchased

In addition to the National Homebuyer Fund, you could potentially qualify for a lender-sponsored assistance program through one of the nation’s largest banks. These programs vary from lender to lender. Stairs Financial does not endorse any single lender-sponsored DPA program over the next.  

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.