As part of the American Recovery and Reinvestment Act of 2009, a federal income tax credit is available to first-time homebuyers in the amount of 10% of the purchase price, up to a limit of $8,000. This credit is available to first-time homebuyers who purchase a home prior to December 1, 2009. In order to help Idaho home buyers get the best use of their tax credit, IHA is offering a Tax Credit 2^nd Loan to qualified Idaho home buyers.

This loan is available in conjunction with an IdaMortgage loan, up to 5% of the purchase price, to a maximum of $7,000. The total borrowed amounts for the first and second mortgages cannot exceed 100% loan to value ratio. This loan is a short term loan and must be paid off with funds from the tax credit received by the home buyer. Therefore, this loan has a due date of July 1, 2010, and will accrue interest at a rate of 3.0% while in repayment status.

Another great program offered by IHA, this Tax Credit 2^nd Loan will help qualified first time Idaho home buyers make the best use of their coming tax credit by applying it to closing or down payment costs. If you’re an Idaho resident looking for your first home, call a qualified IHA lender to find out if you qualify for this fabulous program. There’s still time to take advantage of the tax credit, and there’s an excess of inventory on the market to choose from!