Idaho Housing Forgivable Loan
The alternative option is a forgivable loan. This loan offers a 0% interest rate and requires no monthly repayments, but it caps the loan amount at 3% of the property’s purchase price.
Each year, 10% of the loan is waived, meaning that by the end of the tenth year, no debt remains. If you decide to relocate, sell, or refinance within the ten-year period, you must immediately repay any remaining loan balance.
There are costs associated with the forgivable loan. The website states that using each 0.5% of forgivable loan will increase the interest rate of the first mortgage by 0.125%.
Visit the IHFA website for complete details, which include income limits in some cases. And check HUD’s list1 of alternative programs for Idaho.