FHA Home Loans

A low down payment option for first-time and repeat buyers

Family taking a selfie in front of their new home with a sold sign

An FHA loan is a home loan insured by the Federal Housing Administration. It was built to help buyers who have less saved for a down payment or who are still building their credit, and it is one of the most common first mortgages in the country.


Who is eligible

FHA loans are open to first-time and repeat buyers who will live in the home. Credit guidelines are more flexible than conventional loans, and lenders can often work with buyers who have had past credit challenges. There are loan limits that vary by county, and your lender can confirm the current limit for Boundary County.


Why buyers like FHA loans

The down payment can be as low as 3.5 percent, and it can come from savings, a gift from family or a down payment assistance program. Interest rates are often competitive. FHA loans do carry mortgage insurance, both an upfront premium and a monthly amount, so it is worth comparing against a conventional loan if your credit is strong.


Help with the down payment

If the down payment is the hard part, Idaho Housing offers a second mortgage of up to 8 percent of the purchase price that can be paired with an FHA loan. You bring as little as $500, complete a short homebuyer education class, and the rest is loaned to you and repaid monthly over 15 years. Household income needs to be under $170,000. Teachers, first responders, nurses and other public employees may also qualify for the Idaho Heroes program. Ask your lender which fits.


What to know for North Idaho properties

FHA loans work for most single-family homes in our area, including homes on acreage, and they can be used for some manufactured homes on a permanent foundation. The home will need an FHA appraisal, which checks value and basic condition. Peeling paint, a damaged roof or a missing handrail can hold things up, so it helps to know that going in.


Next steps

We are not lenders, but we work with local lenders who handle FHA loans every week and can tell you quickly whether it is the right fit. Call us at (208) 267-2100 or send us a note on our contact page.