Low-Income Borrowers

The Interest Rate Reduction for Low-Income Borrowers (IRRLIB) option seeks to increase home ownership by offering subsidized interest rates to low-income borrowers depending on family income and size.

How it works

Qualified borrowers may participate in the IRRLIB program to lower the interest rate on any owner-occupied single-family loan. Reductions of 0.5% or 1% are available depending on family income, which may not exceed income limits for the area. The interest rate reduction applies to the first $180,000 of the loan amount. Loans exceeding $180,000 receive a blended interest rate rounded up to the next 0.125%.

Qualified borrowers have not owned a primary residence in the last three years (exceptions may apply) and do not own any other residential property within 50 miles of the home being purchased.

Additional Considerations

  • Borrowers must participate in an approved homebuyer education class. If there are two borrowers, only one is required to complete a class.
  • Eligible properties are limited to owner-occupied single-family residences, condominiums, units in a Common Interest Community and Type I manufactured homes.
  • Homes that are 10 years old or older must be inspected by an authorized home inspector.


How to Apply