Before You Begin
Review Your Finances
Take time to thoroughly assess your financial position. Be as accurate as you can in determining your current debt and ongoing expenses.
Get Pre-Approved
Having pre-approval puts you in a stronger position when making an offer, and gives a seller confidence in you as a buyer.
Get a Credit Check
Your credit score is one factor that lenders will consider when you come to apply for a loan.
Affording a Home
Be clear about your needs, wants, and financial position. Once you have established what you can realistically afford we can quickly identify homes that meet your requirements and budget.
Most Common Loan Types
CONVENTIONAL LOANS
(Fannie Mae & Freddie Mac)
Who Qualifies?
Borrowers with at least a 620 credit score and sufficient income to meet lender guidelines.
Used for Second Homes?
Yes. They are the most common choice for primary, secondary, and investment properties.
What's the Minimum Down Payment?
Between 3% for first-time buyers; typically 5% for others. 20% avoids PMI.
Upfront Down Payment?
Yes. At least 3% of the purchase price, though it can come from your own funds or gift assistance.
Requires a Monthly Mortgage Insurance?
Yes if down payment is less than 20%; can be removed once sufficient equity is built.
Maximum Loan Amount
As of 2025, it is $806,500 in Idaho.
VA
(Department of Veteran Affairs)
Who Qualifies?
Veterans, Reservists, National Guard, Active-Duty, and Surviving Spouses
Used for Second Homes?
No, with some exceptions.
What's the Minimum Down Payment?
No required minimum down payment.
Upfront Down Payment?
No required upfront down payment.
Requires a Monthly Mortgage Insurance?
No PMI; VA charges a one-time funding fee unless the borrower is exempt.
Maximum Loan Amount
Technically no cap for those with full entitlement. As of 2025, if partially entitled, Idaho’s conforming loan limit of $806,500 applies.
FHA
(Federal Housing Administration)
Who Qualifies?
Anyone meeting minimum credit and low to moderate-income levels. Contrary to popular belief, these loans are not limited to first-time homebuyers.
Used for Second Homes?
No. FHA loans are restricted to primary residences only.
What's the Minimum Down Payment?
FHA loans are typically 3.5% for qualified borrowers with credit scores of 580 or higher.
Upfront Down Payment?
Yes. Includes both the 3.5% down payment and the Upfront Mortgage Insurance Premium (UFMIP) which is 1.75% of the loan.
Requires a Monthly Mortgage Insurance?
Yes. Both upfront and monthly MMI; the monthly MMI typically cannot be canceled.
Maximum Loan Amount
As of 2025 FHA limits vary by county:
- Ada County: $586,500
- Blaine & Camas Counties: Up to $759,000
- All Other Counties: $524,225
USDA LOANS
(U.S. Department of Agriculture Loans)
Who Qualifies?
Low and moderate-income borrowers (household income typically less than 115% of area median income), buying a home in an eligible rural area
Used for Second Homes?
No. Must be primary residence.
What's the Minimum Down Payment?
None. USDA loans offer 100% financing.
Upfront Down Payment?
None.
Requires a Monthly Mortgage Insurance?
No PMI; instead, there may be low annual fees or guarantee fees.
Maximum Loan Amount
No fixed cap; lenders will approve based on the borrower’s qualifications.
Special Note for Idaho
Large swaths of Idaho qualify, especially outside metropolitan areas (such as Ada and Canyon Counties), but eligibility varies by county and property location. You can check property eligibility using USDA’s official tool, or local real estate professionals can advise on specific addresses.
Have More Questions? We're Here to Help.
Lysi Bishop
Founder, Realtor® | License ID: SP20072
