Forgivable Loan Terms
- Available for purchase programs only.
- Tiered forgiveness of 10% per year and fully forgivable at the end of year 10.
- Any unforgiven balance will be due and payable upon sale or refinance.
- Maximum amount of forgivable loan is 3% based on lesser of the sales price or appraised value.
- Finally Home! Homebuyer Education is required. Only one certificate is required per loan.
- Borrowers must contribute at least .5% of the purchase price of their OWN funds into the transaction.
- Documents are available on the login page and home page of Lender Connection.
- 0.125% added to the first mortgage interest rate for each 0.5% of forgivable loan used.
- .125 for .50%
- .25 for 1%
- .375 for 1.5%
- .50 for 2%
- .625 for 2.5%
- .75 for 3%
Terms for Combining Second Mortgage with Forgivable Loan
- Borrower must be a first-time homebuyer (waived for Heroes eligible borrowers).
- The combined total of Forgivable Loan and Second Mortgage cannot exceed 10%.
- Combined DPCC option is available for the following loan programs:
- First Loan
- Idaho Heroes
- Freddie Mac HFA Advantage 50% / 80% AMI
- Fannie Mae HFA Preferred 80% AMI