Buying in Kuna and worried about the down payment or closing costs holding you back? You are not alone. Many first-time and move-up buyers across Ada County use Idaho Housing & Finance Association resources to make a home purchase more affordable. In this guide, you will learn how IHFA assistance, education, and first mortgage options can reduce your cash to close and how those tools pair with conventional, FHA, USDA, and VA loans. Let’s dive in.
What IHFA offers Kuna buyers
IHFA brings a set of programs that can help you bridge the gap between savings and what you need at the closing table. Key tools include:
- Down payment and closing cost assistance that sits beneath your first mortgage as a subordinate lien. Depending on the product, the assistance may be deferred, low interest, or forgivable over time.
- Mortgage Credit Certificates that create a federal tax credit on a portion of the mortgage interest you pay each year, which can improve overall affordability.
- Fixed-rate first mortgages designed for low to moderate income buyers, offered through approved lenders.
- Homebuyer education that teaches mortgage basics, budgeting, and responsibilities, and is often required to qualify for assistance.
You apply for a first mortgage with an IHFA-approved lender, then layer IHFA assistance beneath that loan. Education is typically completed before final approval. You can review IHFA’s homebuyer programs and connect with approved lenders on the IHFA site. Start with the overview on the IHFA homebuyers page to see current offerings and eligibility.
- Learn more about IHFA’s homebuyer programs at the IHFA homebuyers hub: IHFA Homebuyers
How assistance lowers cash to close
IHFA down payment assistance can help cover your required down payment and eligible closing costs. Some programs also allow payment of certain prepaid items at closing, though this depends on specific product rules and lender approval.
Common structures include:
- Deferred 0 percent second lien with no monthly payment while you occupy the home. Repayment or forgiveness depends on program terms.
- Low or zero interest second lien with scheduled monthly payments.
- Grant-style assistance for targeted situations, which are less common and program dependent.
The exact terms and limits change over time. It is important to confirm the current rules with an IHFA-approved lender before you write offers.
Pairing IHFA with your loan type
IHFA assistance is designed to work alongside the most common first mortgages. Compatibility and documentation matter, so your lender will structure the file to meet investor rules.
Conventional loans
Conventional loans under Fannie Mae or Freddie Mac allow certain forms of subordinate financing when documented correctly. DPA can affect your loan-to-value ratio and private mortgage insurance requirements. If PMI applies, you can often request cancellation when you reach 80 percent LTV per investor rules. For conventional policy details, see the Fannie Mae Selling Guide.
FHA loans
FHA financing permits eligible subordinate liens from approved sources. You still pay the upfront and annual mortgage insurance required by FHA. In some cases, DPA may be used to pay the upfront mortgage insurance at closing if the program and lender allow it. For FHA insurance guidance, review the HUD Single Family FHA resources.
USDA loans
Parts of Kuna and greater Ada County can qualify for USDA’s Guaranteed Loan program. USDA has specific property eligibility maps and income guidelines, and many buyers appreciate the potential for zero down on the first mortgage. IHFA assistance may be allowed when it meets USDA and lender requirements. Start with USDA’s program page and ask your lender to confirm address eligibility using the official map. Learn more on the USDA Guaranteed Loan program page.
VA loans
If you are eligible for a VA loan, you can finance 0 percent down on the first mortgage. IHFA assistance may still help with closing costs, subject to VA and lender rules, including seller contribution limits and the VA funding fee. Read about VA loans on the U.S. Department of Veterans Affairs home loan page.
What it means for monthly payments
- If your IHFA assistance is deferred or forgivable, you typically do not have a monthly payment on the second lien. Your monthly budget centers on the first mortgage, taxes, insurance, and any mortgage insurance.
- If your assistance is a repayable second lien, you will have an extra monthly payment. Your lender will include that in your debt-to-income ratio.
- On conventional loans, PMI rules depend on first mortgage LTV and investor policy. On FHA loans, mortgage insurance is set by FHA rules and does not go away unless you refinance or pay off the FHA loan per current guidelines.
Mortgage Credit Certificates 101
A Mortgage Credit Certificate is a federal tax credit tied to a portion of the mortgage interest you pay each year. It is not the same as DPA and does not provide cash at closing. Instead, it reduces your federal tax liability, which can improve your overall monthly affordability and help with qualifying. For the federal tax form used to claim the credit, see IRS Form 8396, Mortgage Interest Credit.
Who typically qualifies
Eligibility can vary by program, but here are common gates to discuss with your lender:
- Household income within IHFA limits for Ada County
- Purchase price at or below IHFA caps
- First-time buyer status for many products, with some exceptions
- Minimum credit score based on your first mortgage type
- Owner-occupied, primary residence only
- Eligible property type that meets lender and program standards
Because limits and rules change, verify Ada County specifics with your lender and the IHFA site before you shop.
Your document checklist
Gathering documents early makes the process smoother. You will likely need:
- Government-issued ID and Social Security numbers for all borrowers
- Recent pay stubs, W-2s, and federal tax returns as required
- Bank statements and documentation for reserves or gifts
- Employment verification information
- Divorce or child support documentation if used for qualifying
- Homebuyer education certificate from an approved provider
- A signed purchase contract once you are under contract
Step-by-step: using IHFA in Kuna
- Talk with an IHFA-approved lender and get pre-approved for your first mortgage. Ask about IHFA DPA and MCC.
- Confirm preliminary eligibility for income, purchase price, and first-time buyer status, if required.
- Complete the IHFA-approved homebuyer education course and obtain your certificate.
- Submit your full loan application and the IHFA assistance application. Your lender coordinates the underwriting.
- Receive your IHFA commitment and close. The assistance is recorded as a subordinate lien beneath your first mortgage.
Allow time in your purchase contract for IHFA processing. Education can be completed before you begin home shopping.
Local tips for Kuna buyers
- USDA eligibility is address specific. Kuna includes both suburban neighborhoods and more rural areas, so eligibility often depends on the exact property location. Ask your lender to check the USDA map for each address.
- Market conditions in Ada County affect how much cash you may want to bring for earnest money and appraisal considerations. DPA typically cannot cover appraisal gaps, so plan accordingly with your lender and agent.
- Verify that IHFA income and purchase price limits align with current Kuna prices before you make offers.
Common pitfalls to avoid
- Waiting to take homebuyer education. Completing it early can speed up approval.
- Assuming any property will qualify for USDA. Always confirm via the official map and your lender.
- Counting on DPA to solve appraisal shortfalls. Discuss appraisal risk with your agent and lender upfront.
- Overlooking how a repayable second lien affects monthly cash flow. Ask your lender to model scenarios with and without payments on the assistance.
Ready to move forward?
If you want to buy in Kuna and reduce your cash to close, IHFA programs can help you get there with the right plan. A quick conversation with an IHFA-approved lender and a focused home search can put you on a clear path to closing. If you need local guidance on neighborhoods, offer strategy, and timelines, we are here to help. Let’s connect and map out your next steps with a plan that fits your budget and your goals.
Connect with Katie Shevlin Real Estate to get started.
FAQs
Can IHFA down payment assistance work with FHA and conventional loans?
- Yes. IHFA assistance is often designed to pair with FHA, conventional, USDA, or VA first mortgages. Your lender will confirm compatibility and documentation for your specific product.
Does IHFA assistance lower my monthly mortgage payment?
- It primarily reduces cash to close. If the assistance has no monthly payment, your monthly debt usually centers on the first mortgage and insurance. If it is a repayable second lien, that payment is added to your monthly budget.
Will I still have PMI on a conventional loan if I use IHFA?
- Possibly. PMI depends on the first mortgage loan-to-value. Your lender will explain how the assistance affects LTV and PMI rules for your scenario.
Can IHFA pay my FHA upfront mortgage insurance at closing?
- Some programs allow assistance to pay the FHA upfront mortgage insurance, subject to program rules and lender approval. Confirm the option with your lender and review FHA guidance on the HUD site.
Is homebuyer education required for IHFA assistance?
- Often yes. IHFA typically requires completion of an approved education course before issuing a commitment for down payment assistance.
How do I check if a Kuna address is USDA eligible?
- Ask your lender to run the address through the USDA eligibility system and confirm your income meets program rules. You can learn about the program on the USDA Guaranteed Loan page.
What is a Mortgage Credit Certificate and how does it help?
- An MCC gives you a federal tax credit tied to part of your annual mortgage interest, which can improve overall affordability. See IRS Form 8396 for how the credit is reported.
