Plan for five buckets: earnest money (typically around 1% of the offer price), the inspection and appraisal fees paid during your contract period, your down payment, and closing costs — which typically run 2–5% of the purchase price in lender-confirmed Treasure Valley transactions. Lenders also like to see reserves remaining after closing. On a $400,000 home, total cash needs vary widely by loan program, which is why we walk buyers through a line-by-line worksheet before they shop.
No. Conventional loans commonly allow 3–5% down for first-time buyers, FHA allows 3.5%, and VA loans allow 0% down for eligible veterans. Putting less than 20% down usually adds mortgage insurance to your monthly payment — a math trade-off, not a disqualifier. The right answer depends on your monthly budget and reserves, not a rule of thumb from a different market decade.
No — and this is the most common first-buyer misunderstanding we correct. IHFA down payment assistance is structured as a second mortgage: a loan you repay in addition to your primary mortgage. It can still be the right tool if it gets you into a home sooner than saving would, but compare the total repayment cost before deciding. Verify current program terms directly with the Idaho Housing and Finance Association.
Around 1% of the purchase price is typical in the Treasure Valley — roughly $4,000 on a $400,000 home. Earnest money is due within days of an accepted offer, is held in trust, and is credited back to you at closing. Whether it's refundable if you walk away depends on the contingencies in your contract, which is exactly what your agent should walk you through before you sign an offer.
About 90 days is a realistic plan: roughly a month getting finances and pre-approval in order, a shopping-and-offer window that varies with the market, and 30–45 days from accepted offer to keys for a financed purchase. Buyers who compress the first phase usually pay for it in the last one. Talk with your MHC agent about your specific timeline.
Buyer agent compensation is negotiated and outlined in the Buyer Representation Agreement. In many transactions the seller agrees to cover the buyer agent's commission. Ask your MHC agent for details specific to your situation.
Closing costs typically run 2–5% of the purchase price in lender-confirmed local transactions — covering lender fees, title and escrow, prepaid taxes and insurance, and recording. They're due at closing, in addition to your down payment, which is why "cash to close" is the number to plan around rather than down payment alone. Your lender's Loan Estimate itemizes them within three business days of application.
It's a property-tax reduction on your primary residence — one of the first things to handle after closing, and one many new owners miss. You apply through your county assessor (Ada or Canyon for most Treasure Valley buyers), and rules and timing are set by the county, so verify current requirements directly with the assessor's office. It applies to owner-occupants, including first-time buyers.
The practical minimum is 580 for an FHA loan with 3.5% down. Conventional loans typically require 620 or higher. VA loans have no official minimum, but most Idaho lenders want to see 620. USDA loans for rural properties generally require 640. Keep in mind that individual lenders often add their own requirements on top of program minimums, so the only way to know exactly where you stand is to get pre-approved with a real lender — not an online calculator.
Yes. VA loans (for eligible veterans and service members) allow zero down with no private mortgage insurance. USDA loans allow zero down for homes in qualifying rural areas — which includes a surprising number of communities outside the Boise metro, including parts of Nampa, Caldwell, Kuna, and Star. Idaho Housing and Finance Association (IHFA) also offers down payment assistance that can effectively eliminate the down payment on FHA or conventional loans. Contact Mark Echevarria at (208) 214-5595 to find out which path fits your situation.
Even on a zero-down loan, expect to need cash for earnest money (typically 1–2% of the purchase price), a home inspection ($400–$600 in the Treasure Valley), an appraisal fee ($600–$800), and closing costs (generally 2–4% of the loan amount). Some of these can be offset by seller concessions, lender credits, or IHFA assistance.
Yes, significantly. Even a 40-point difference in credit score can change the interest rate you're offered — and on a 30-year mortgage, that adds up to thousands of dollars over the life of the loan. Buyers with scores above 720 generally unlock the lowest available rates. If your score is in the 580–640 range, improving it before applying may lower your monthly payment more than any other single step you can take.
An FHA loan is a mortgage backed by the Federal Housing Administration. It allows a down payment as low as 3.5% with a credit score of 580. FHA loans are one of the most common paths for first-time buyers in Idaho because they're accessible, lender-friendly, and can be paired with Idaho Housing down payment assistance. The trade-off is mortgage insurance premium (MIP), which is required for the life of the loan on most FHA loans with less than 10% down.
PMI stands for private mortgage insurance. Lenders require it when you put less than 20% down on a conventional loan, because they're taking on more risk. It typically costs 0.5–1.5% of the loan amount per year, added to your monthly payment. VA loans have no PMI. FHA loans have their own version called MIP. On conventional loans, PMI automatically cancels once you've built 20% equity in the home — you can also request cancellation when you reach that threshold.
Idaho Housing and Finance Association (IHFA) runs several loan programs and offers down payment and closing cost assistance. One thing most articles get wrong: Idaho Housing states that its down payment assistance is available to all eligible Idaho homebuyers — not just first-time buyers. Idaho Housing says a credit score of 620 or higher is typically beneficial, and its assistance can be paired with conventional, FHA, VA, and Rural Development loans. To use Idaho Housing loan programs or assistance, you must work with an Idaho Housing–approved lender; Idaho Housing publishes a lender directory at idahohousing.com. Program details and income limits change over time — verify current terms with Idaho Housing or an approved lender.
In most cases, yes — and this is the single most misunderstood thing about the program. Idaho Housing states that the assistance is loaned to you via a second mortgage, repaid alongside your primary mortgage through small monthly payments. Idaho Housing also references a forgivable loan option. Either way, Idaho Housing says plainly that your monthly payment will increase slightly, and your lender will confirm you can afford the full monthly cost before you proceed. It is not free money, and Idaho Housing does not describe it as a grant. Repayment terms vary by product — including how any remaining balance is treated if you sell or refinance — so confirm the specifics with an Idaho Housing–approved lender before you apply.
A VA loan is a mortgage benefit for eligible military service members, veterans, National Guard and Reserve members, and certain surviving spouses. It requires no down payment and no private mortgage insurance, and typically carries competitive interest rates. A one-time VA funding fee applies in most cases — disabled veterans with a service-connected rating are often exempt. Idaho has a significant veteran population and a strong base at Mountain Home Air Force Base, so VA loans are a common and well-understood path here.
A USDA loan is a zero-down mortgage for primary residences in USDA-designated rural areas, subject to household income limits. More of Idaho qualifies than most buyers expect — many communities outside the Boise core, including parts of Nampa, Caldwell, Kuna, Star, Middleton, and Emmett, as well as smaller towns across the state, are USDA-eligible. Property eligibility is address-specific and can be checked on the USDA's online eligibility map. Income limits vary by county and household size.
For most people moving from below 580 to above 620, expect three to nine months of consistent effort: paying credit card balances below 30% of each card's limit, making every payment on time, and disputing any errors on your credit report. Errors are more common than people expect — always pull your free reports at AnnualCreditReport.com first, because fixing a genuine error can sometimes raise your score within a single billing cycle.
Yes, but it requires more work. Some loan programs — particularly FHA and USDA — allow manual underwriting, where a lender builds an alternative credit profile using documented on-time payments for rent, utilities, phone, or insurance. This process takes longer and requires careful documentation, but it is a legitimate path for buyers without a traditional credit history. Ask a participating Idaho lender whether manual underwriting is available for the loan type you're considering.
Earnest money is a good-faith deposit you submit when your offer on a home is accepted. In the Treasure Valley, it's typically 1–2% of the purchase price, though amounts vary by transaction. The money is held in escrow and applied toward your closing costs at the end. It is not an extra cost on top of your down payment — it's part of it. If the sale falls through for a contingency-protected reason (like a failed inspection), earnest money is typically returned to you.
Debt-to-income ratio (DTI) is your total monthly debt payments divided by your gross monthly income. Lenders use it to measure how much of your income is already committed to existing obligations. Most loan programs want your DTI under 43%, with some programs more lenient and others more strict. A buyer with a strong credit score but a high DTI may qualify for less than expected — or not qualify at all. Paying down car loans, student loans, or credit card balances before applying can meaningfully improve your DTI.
For most federal and Idaho loan programs, 'first-time buyer' means you have not owned a primary residence in the past three years. If you owned a home previously but sold it or let it go more than three years ago, you likely qualify. It does not mean you've never owned anything in your life. Some programs are stricter about this definition than others, so confirm eligibility with a lender based on your specific history before assuming you do or don't qualify.