Think you need 20 percent down to buy a home in Ammon? Many buyers start there and feel stuck. The good news is you have more paths than you might think, from 0 percent options to state-backed assistance that can cover part of your upfront costs. In this guide, you’ll learn the main loan types, down payment assistance available in Idaho, and a simple plan to get started with confidence. Let’s dive in.
Why your down payment matters
Your down payment affects your monthly payment, mortgage insurance, and how fast you build equity. A lower down payment raises your loan-to-value ratio, which can mean mortgage insurance and a higher monthly cost. Some loans also charge upfront or ongoing insurance that you should factor into your budget. Knowing these tradeoffs helps you pick the path that fits your timeline and comfort level.
In Ammon and the greater Idaho Falls area, home prices and inventory can shift through the year. The amount you bring to closing will depend on your chosen loan, any assistance you use, and the price of the home. The right combination can reduce cash to close while staying within program rules.
Common loan types in Ammon
Conventional loans: 3 to 20 percent down
Conventional loans can work well if you have solid credit and steady income. Many first-time or low to moderate income buyers can qualify for 3 percent down programs from Fannie Mae or Freddie Mac. If you put less than 20 percent down, you will pay private mortgage insurance (PMI), which varies by credit score and loan details. A key benefit is that PMI may be removable once you reach about 20 percent equity, which can lower your payment later.
FHA loans: 3.5 percent down
FHA loans are popular with first-time buyers who want flexible credit guidelines. With a credit score of 580 or higher, the typical minimum down payment is 3.5 percent. FHA includes an upfront mortgage insurance premium and an annual premium that usually lasts for the life of the loan. Homes must meet FHA appraisal and condition standards, which helps protect you but can affect your search and timeline.
VA loans: 0 percent down for eligible buyers
If you are active-duty military, a veteran, a qualifying reservist, or an eligible surviving spouse, a VA loan can offer 0 percent down. There is no monthly PMI, which can improve your budget. A one-time funding fee may apply and can often be financed. The home must meet VA appraisal and occupancy rules.
USDA loans: 0 percent down in eligible areas
USDA loans offer 0 percent down for eligible borrowers and properties. Income limits apply, and property eligibility is tied to the exact address. In Bonneville County, some areas can qualify while others may not. This option can be a strong fit if you meet the income guidelines and your target home is in a USDA-eligible location.
Using down payment assistance in Idaho
Idaho Housing and Finance Association (IHFA)
IHFA offers homebuyer programs used across Idaho, including down payment assistance that can come as a forgivable loan, a repayable second mortgage, or other support such as Mortgage Credit Certificates. Eligibility often includes income limits, purchase price caps, and use of an IHFA-approved lender. In many cases, you can pair IHFA assistance with FHA, VA, USDA, or conventional loans when program rules allow.
Local, employer, and bank support
Cities and counties sometimes use community development funds to support homeownership. It is worth checking whether the City of Ammon or Bonneville County has current programs that help with down payment or closing costs. Some large employers, hospital systems, and school districts may offer housing benefits. Local banks and credit unions also sometimes run special low down payment or matched-savings programs for first-time buyers.
Education and counseling
Many assistance programs require homebuyer education, which you can complete through HUD-approved counseling agencies. Education gives you a clear view of budgeting, loan options, and how to use assistance without surprises at closing. Getting the certificate early can speed up your application.
Acceptable sources of your down payment
- Personal savings and checking funds
- Gift funds from family with a documented gift letter
- Grants or down payment assistance funds that meet loan rules
- Seller concessions to cover allowable closing costs
- Retirement account distributions or loans, if permitted by your plan
Your lender will document the source of funds with bank statements, pay stubs, W-2s, and any gift letters. Keep your accounts stable during the loan process to avoid delays.
What to watch with assistance
Down payment assistance can be a second mortgage that is deferred, interest-free, forgivable, or repayable. Forgivable programs often reduce what you owe over a set number of years. If you sell or refinance before the term ends, you may have to repay some or all of the assistance. Review the terms with care so you understand timing, repayment triggers, and how it could affect future plans.
Smart combinations that work in Ammon
- FHA plus IHFA assistance: Use FHA’s lower down payment with IHFA funds to cover part of the down payment and some closing costs, if allowed.
- Conventional 3 percent plus assistance: Pair a conventional first-time buyer program with DPA to reduce cash to close.
- VA or USDA plus local help: Even with 0 percent down, assistance can sometimes cover closing costs or help buy down your interest rate, depending on the program.
Before you combine programs, confirm compatibility, lender approval, and timing. Many assistance programs require you to work with approved lenders and submit documents well before closing.
Step-by-step plan to get started
- Set a budget: Review current asking prices in Ammon and the Idaho Falls metro and define a monthly payment target that fits your comfort level.
- Talk to multiple lenders: Include IHFA-approved lenders if you plan to use assistance. Compare rates, mortgage insurance, and total cash to close across FHA, conventional, VA, and USDA.
- Check eligibility: Verify income limits, purchase price caps, first-time buyer rules, and address-specific USDA eligibility. Confirm service eligibility for VA.
- Complete homebuyer education: If you are considering assistance, finish the course early and keep your certificate on hand.
- Gather documents: Pay stubs, W-2s, tax returns, bank statements, and gift letters if applicable. Keep funds seasoned and traceable.
- Align timelines: If you use assistance, coordinate with your lender and the program administrator to meet all deadlines before closing.
- Read the fine print: Understand forgiveness schedules, repayment triggers, and how assistance affects selling or refinancing later.
How to estimate cash to close
- Start with your target home price.
- Multiply by the down payment percentage for your loan program.
- Add estimated closing costs from your lender’s loan estimate.
- Subtract any assistance, gift funds, or seller concessions that apply under program rules.
This quick framework helps you compare scenarios side by side as you shop for homes and loans.
Work with a local team you trust
You do not have to figure this out alone. A local agent who knows Ammon and Bonneville County can help you align your budget, loan type, and assistance options with current inventory. Our team helps you compare scenarios, negotiate seller concessions when appropriate, and keep your purchase on track through appraisal, underwriting, and closing.
If you are ready to explore homes and map out a down payment strategy, connect with the local experts at Top-Notch Real Estate. We will help you move from research to keys in hand.
FAQs
What is the minimum down payment to buy a home in Ammon?
- Depending on eligibility, options range from 0 percent down with VA or USDA, to 3 percent down with some conventional programs, to 3.5 percent down with FHA.
Can you use gift funds for a down payment in Idaho?
- Yes, many loan programs allow family gifts with proper documentation such as a gift letter and bank statements showing the transfer and source.
Do income limits apply to down payment assistance in Bonneville County?
- Often yes. IHFA and other assistance programs commonly have income and purchase price limits, and some are restricted to first-time buyers.
Do you have to repay down payment assistance?
- Sometimes. Assistance can be forgivable, deferred, or due upon sale or refinance within a set period. Read program terms to understand repayment triggers.
Is Ammon eligible for USDA 100 percent financing?
- It depends on the exact property address and your household income. Some areas may qualify while others do not, so check eligibility for each home you consider.
