(BOISE) IdaMortgage, brought to you by Idaho Housing and Finance Association (IHFA), announced today a special, short-term loan that allows qualified buyers to make immediate use of the new federal income tax credit for first-time homebuyers. The American Recovery and Reinvestment Act of 2009 provided the tax credit of up to 10 percent of the sales price, with a maximum of $8,000, for first-time homebuyers who purchase a primary residence by Dec. 1, 2009. This new IdaMortgage loan product, called Tax Credit 2nd Loan, is now offered through participating lending partners statewide. Buyers can monetize the tax credit for down payment and closing costs to help them purchase a new home.

The Tax Credit 2nd Loan is a subordinate loan that works in conjunction with an IdaMortgage loan. It will be offered to qualified first-time homebuyers in an amount that does not exceed 5 percent of the sales price or $7,000. The loan is expected to be paid off from the borrower’s tax refund that includes the federal tax credit. The loan will have a due date of July 1, 2010, and will accrue interest at 3 percent. An additional fee of $250 will be charged, but $150 will be refunded to the borrower upon repayment of the loan by the due date.

“First-time homebuyers will benefit by using this new loan product upfront to help fund the purchase of their new home,” says Gerald Hunter, IHFA president and executive director. “Now’s a great time to buy and take advantage of the stimulus dollars available.”

To qualify for the Tax Credit 2nd loan a borrower must:

• Be a first-time homebuyer,
• Have a FICO score of no less than 640, and a total debt ratio of no more than 45 percent,
• Qualify for an IdaMortgage loan, and
• Take a Homebuyer Education course.

To learn more about the new loan program, apply for the Tax Credit 2nd Loan, or view a complete list of participating lending partners statewide, visit www.IdaMortgage.com.

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Idaho Housing and Finance Association, a financial services and housing business organization, provides funding for affordable housing in Idaho communities where it is most needed and when it is economically feasible. For more information, visit our Web site at www.ihfa.org.