Loans With Down Payment Assistance

Need to buy a home but don’t have the money for down payment?

There are loan programs available that allow you to have very little down payment and a couple that don’t require a down payment at all.

Through entities like Idaho Housing and Finance and Neighborworks Pocatello, you can get a loan for your down payment.  It comes in the form of a small second mortgage, and it does have to be paid back.  Typically these are very small payments separate from your actual mortgage loan.  For example, let’s say you want to buy a home for $400,000.  You can get a mortgage loan for 97% of that $400,000, so $388,000.  That means you would need $12,000 for your down payment.  But through Down Payment Assistance programs, you can borrow 2.5% of that 3% down payment, so a second loan for $10,000.  You only need $2,000 as down payment to buy a $400,000 house.

There are a couple other loan programs like Rural Development and Veteran’s Administration that will lend 100% of the purchase price.  But you must qualify for those by either buying as home in a rural area, or have Veteran eligibility.