Idaho’s Good Credit Rewards Program: Incentives for Financial Responsibility

With its Good Credit Rewards Program, the Idaho Housing and Finance Association is committed to helping prospective homebuyers in the state achieve their dreams of homeownership. This program is designed to provide valuable down payment and closing cost assistance to individuals who demonstrate creditworthiness, making it easier for them to embark on their homeownership journey while minimizing the upfront financial burden.

Available Assistance: The Good Credit Rewards program offers eligible applicants essential financial support in the form of down payment and closing cost assistance. This assistance is provided based on individual needs, and it is structured as a 10-year second mortgage. This second mortgage is designed to complement the primary mortgage obtained through Idaho Housing. While the second mortgage is offered at an interest rate that is 2 percent above Idaho Housing’s standard rates, the 10-year term ensures that monthly payments remain manageable, enabling borrowers to qualify for the necessary loan amount. The maximum loan amount for down payment assistance is set at 2.5 percent or $8,000, whichever is lower.

Eligibility Requirements: To be eligible for the Good Credit Rewards Program, applicants must meet specific criteria to ensure they are well-prepared for homeownership:

  1. Credit Score: Homebuyers seeking financing through the Advantage or Preferred primary mortgage must have a minimum credit score of 680. For those utilizing First loan products, a credit score of 640 or higher is required.
  2. Financial Contribution: Applicants are expected to contribute at least 0.5 percent of the purchase price from their own financial resources. This demonstrates a commitment to the home purchase.
  3. Income Limits: For FHA loans, first-time homebuyer income limits apply, so applicants must adhere to these guidelines.
  4. Homebuyer Education: If both borrowers are first-time homebuyers, one of them is required to complete the Finally Home!® Homebuyer Education course. This comprehensive course covers various crucial topics, including budgeting, understanding credit, the closing process, and the various costs associated with the home-buying process.

By offering this program, the Idaho Housing and Finance Association aims to empower individuals with strong credit histories to take the necessary steps toward homeownership. This support not only reduces the financial barriers to entry but also provides the necessary education and resources to make informed decisions throughout the home buying process.

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