Mortgage Rates in Idaho
Compare today's average mortgage rates in the state of Idaho. Bankrate aggregates mortgage rates from multiple sources to provide averages for Idaho.
Idaho mortgage overview
Idaho has seen soaring home prices in recent years, as buyers came for the Gem State’s many attractions: rugged mountain scenery, outdoorsy lifestyle and relative affordability compared to similar cities around the country.
The surge in housing costs was driven partly by baby boomers and millennials. Boise, for example, was a highly active market in 2019, drawing transplants from premium-priced cities like New York, Portland and San Francisco.
First-time homebuyer programs in Idaho
Idaho Housing offers many programs to assist with a home purchase, whether you’re a first-time or repeat buyer. There are programs offering affordable loans, low down payments, no mortgage insurance, down payment assistance and closing cost assistance.
To qualify, your income can’t be greater than $110,000 per year. Available loans include conventional, FHA, VA and USDA loans.
Financing is available for these property types:
- Single-family homes
- Manufactured homes
Idaho homebuyers with strong credit can apply for down payment and closing cost assistance that will reduce the amount of upfront cash you need to bring at closing. There are two options:
Second mortgage: You can apply for a second mortgage of up to 3.5 percent of the sale price to pay for some of the down payment or closing costs. The loan has a term of 10 years and a fixed interest rate of 5 percent.
To qualify, your income needs to be no more than $110,000 a year. If your credit score is 680 or higher, you can combine the second mortgage with other Idaho Housing loan products. If your credit score is at least 640, you can combine it with the agency’s First Loan program.
In addition, you’ll need to complete a homebuyer education course, and you must pay at least 0.5 percent of the home purchase price yourself.
Forgivable loan: With this loan program, up to 3.5 percent of the purchase price may be forgiven over seven years. You don’t need to be a first-time homebuyer to qualify, but completion of a homebuyer education class is required, and you must pay at least 0.5 percent of the price yourself.
Homebuyer Tax Credit
As a homeowner in Idaho, you may be able to claim a federal tax credit for 35 percent of your annual mortgage interest, up to $2,000 per year.
To qualify for the Mortgage Credit Certificate (MCC), you must be either a first-time homeowner or the owner of a home in a designated targeted county. In addition, you must live in the home as a primary residence. Household income and purchase price limits apply.
The tax credit program cannot be combined with the Idaho Housing First Loan program. Your lender can confirm eligibility and submit the application to Idaho Housing. There is a $300 fee.
Idaho mortgage refinancing
Refinancing assistance is also available. You may refinance either with or without an appraisal. Refi options include:
- Cash-out refinancing
- Rate-and-term refinancing
- Streamline refinancing
If you are a homeowner with income that is no more than $110,000, you can apply for a mortgage refinance through Idaho Housing. (In Blaine County, the income limit is $120,000.) You need a minimum credit score of 620 to qualify.