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Homebuyers with less than 140% of area median income can now qualify for Idamortgage's new 30-year fixed rate down payment and closing costs assistance second mortgage program. The down payment assistance loan combined with IdaMortgage's first mortgage can go up to as much as a combined loan to value of 100%, or a maximum of 5% of the first mortgage loan. The second mortgage will be offered at 1 to 2% above IdaMortgage's standard interest rate.
The Good Credit Rewards down payment and closing cost assistance second mortgage interest rates are tiered by credit score:
- Interest rate is 1% higher than First Loan rate for borrowers with credit scores of 720 or higher.
- Interest rate is 2% higher than First Loan rate for borrowers with credit scores of 700 to 719.
- Homebuyer education is required for buyers with credit scores lower than 720.
- Borrowers with credit scores of lower than 700 will not be able to obtain this second mortgage, but may qualify for our HOME grant down payment assistance if their annual income is less than 80% of the area median income.
- Borrowers must contribute $500 and use other available cash on hand, gifts, or other grants.
These 2nd mortgages are fixed rates over 30 years making the monthly payment very low so borrowers can easily qualify for the loan amount they need.
For example: For a $120,000 loan, a down payment assistance second mortgage used in conjunction with a 95% loan-to-value IdaMortgage loan could be up to $6000:
| $6,000 @ 6.59% | monthly payment is : $38.27 |
| @ 7.69% | 42.73 |
As you can see these are affordable monthly payments making it easier for low and moderate income households to qualify for homeownership.
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