Overview
Idaho's housing market offers opportunities for first-time buyers, with a median home price of approximately $440,000. The Idaho Housing and Finance Association (IHFA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The Second Mortgage Program is an idaho housing and finance association's key offering for first-time buyers, providing up to 7% of the purchase price as a 0% deferred second mortgage (30-year term). This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
Second Mortgage Program
Down payment and closing cost assistanceIdaho Heroes Program
Below-market rate mortgageFederal Programs Available in Idaho
These nationwide programs can be combined with Idaho state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Idaho
The Idaho Heroes Program extends additional support through below-market interest rate for qualifying public service employees. Idaho has a flat income tax of 5.695% as of 2026. Property taxes average about 0.63%. IHFA's generous 7% second mortgage program makes the state's rising home prices more accessible.
Federal programs complement state offerings in Idaho. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Mountain Home Air Force Base. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Idaho.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.