Homebuyers with less than 140% of area median income can now qualify for a special Idaho 30-year fixed rate down payment and closing costs assistance second mortgage program. The down payment assistance loan must be combined with another product offered by the same Idaho organization. The second mortgage will be offered at 1 to 2% above the 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 mortgage rate of the first mortgage for borrowers with credit scores of 720 or higher.
• Interest rate is 2% higher than mortgage rate of the first mortgage rate for borrowers with credit scores of 700 to 719.
• Maximum amount of second mortgage is capped at 3.5%, for all loan programs, not to exceed 100% combined loan-to-value, or the maximum approved by mortgage insurance guidelines.
• 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.
• Borrowers must contribute at least $500 towards the transaction, or higher depending on Mortgage Insurance requirements.
• Good Credit Rewards funds are based on need. Borrowers cannot have more than an equivalent of three months payments in liquid assets after closing.

These second 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 conventional loan with a $200,000 sales price, a down payment assistance second mortgage used in conjunction with a 95% loan-to-value IdaMortgage loan could be up to $7,000:

• For $7,000 in assistance at 6.59%, the monthly payment is only $44.66.
• For an interest rate of 7.69%, the monthly payment is only $49.86.

These are very affordable monthly payments, making it easier for low and moderate income households to qualify for homeownership.