(BOISE) Idaho Housing and Finance Association (IHFA) is eager to work with its partners to administer portions of the Housing and Economic Recovery Act, which offers Idahoans facing the possibility of foreclosure more options to keep their homes, and may help potential homebuyers who would like to purchase a home. Nationwide, the legislation includes funding for fixed-rate mortgages; foreclosure mitigation counseling and legal assistance; neighborhood stabilization funding to help states deal with foreclosed properties; a housing trust fund; and a new first-time homebuyer credit worth up to $7,500 for qualifying home purchases. Portions of this funding are also earmarked for long-term, fixed rate mortgages and refinance loans, housing counseling, and down payment assistance.

"Idaho Housing and Finance Association is eager to utilize this funding to help Idaho homeowners with their housing concerns," said Gerald Hunter, IHFA President and Executive Director. "Many of the provisions of this Act will allow IHFA to enhance or offer more availability of its existing programs."

Idaho received a total of $123.7 million as part of this Act to fund a variety of housing initiatives statewide. More than $100 million in funding will be used for the homeownership provisions within this Act. Here is some additional information that describes how IHFA will help Idahoans through the homeownership portions of this Act.

• Additional Mortgage Revenue Bonds for new mortgages and refinancing - $100 million
  An additional Mortgage Revenue Bond (MRB) allocation will help meet the increased demand for long-term, fixed rate mortgages and refinance loans for low- and moderate-income borrowers. With this new funding, IHFA will be able to finance mortgages for an additional 750 households through its First Loan program, which offers low fixed interest rates. Also, it will make it possible for eligible households facing financial hardship with adjustable-rate mortgages made after Dec. 31, 2001 and before Jan. 1, 2008, to refinance into a fixed-rate mortgage.


• Housing counseling - $143,000
  IHFA and Idaho Partners for Home Buyer Education, Inc. already offer free housing counseling across Idaho. This additional funding will allow more homeowners facing foreclosure access to housing counseling services, which help homeowners identify resources and solutions for their housing concerns. Those wishing to access this free housing counseling service can call toll-free, 1-877-888-3135.


• First-time homebuyer credit – not to exceed $7,500 per resident
  A new first-time homebuyer credit equal to 10 percent of the purchase price of a principal residence, not to exceed $7,500, is being established as part of the Act. This credit is allowed for purchases made on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving the credit must repay it over 15 years through a surcharge on their annual income taxes. Borrowers may benefit from this tax credit by obtaining a loan through IHFA’s Advantage Loan program. This credit is not available through IHFA’s First Loan program. Through this provision, borrowers will be able to keep funding that would otherwise go toward taxes, allowing them to use these funds for immediate needs.

The Idaho Housing and Finance Association, a financial services and housing organization, provides funding for affordable housing in Idaho communities where they are most needed and when it is economically feasible. IHFA uses no state funds or state employees to support its operations. For more information, visit our Web site at www.ihfa.org.