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For many buyers, the biggest hurdle to purchasing a home is saving for the down payment. Fortunately, several programs exist to help families, first-time buyers, and individuals in certain professions achieve homeownership with little or no upfront cash.

Idaho Housing and Finance Association (IHFA)

The most popular and accessible program is through the Idaho Housing and Finance Association (IHFA), a nonprofit that partners with lenders to provide down payment assistance.

“The number one, most popular, and the most accessible way is through Idaho Housing,” stated Mortgage Loan Officer Tyler Bringhurst. “They offer down payment assistance programs for FHA and conventional loans. An FHA loan typically requires three and a half percent down, while a conventional loan for a qualifying first-time buyer requires three percent. Not every borrower has that money, and Idaho Housing steps in with what they call an Affordable Second.”

The Affordable Second provides borrowers with up to 8% of the home’s purchase price to cover down payment and closing costs. For many buyers, this can mean qualifying with as little as $500 out of pocket — or no cash at all for those in the Idaho Heroes program, which waives the contribution for teachers, nurses, firefighters, police, and EMTs.

Bringhurst shared a recent success story: “I worked with a couple where the wife was a nurse. They had great jobs but did not have the money for a down payment. Because she qualified for Idaho Heroes, they were able to buy a brand-new home with zero money out of pocket. They were so excited — it was the cash up front that was holding them back, not the monthly payment.”

Home$tart® Grant

Another option is the Home$tart® program, funded by the Federal Home Loan Bank. This grant provides up to $15,000 for down payment and closing costs. “It’s a grant, not a loan, so if you’re in the home five years, they forgive it completely,” said Bringhurst, who used this program personally to buy his first home. “That extra $7,500 made all the difference for us.”

VA and USDA Loans

Veterans and rural home buyers also have strong options. VA and USDA Rural Development loans both allow 100% financing with zero down payment, making them ideal for those who qualify.

No matter your situation, affordable down payment solutions exist to help you move from dreaming to owning. Talk to a Mortgage Loan Professional today to learn which option best fits your path to homeownership.

*Grant programs are subject to additional qualifications and availability of funds. See https://www.bankfirstfed.com/lending/home-loans/affordable-down-payment-options.html for more information on homeownership assistance programs.

All credit products subject to approval Institution NMLS #402963. Equal Housing Lender. Member FDIC.