FHA Loan Requirements, Guidelines and Application Tips
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2023 FHA Loan Limits in Idaho

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Although home loans backed by the Federal Housing Administration (FHA) offer more lenient qualifying requirements than conventional mortgages, they also come with FHA loan limits restricting how much you can borrow. In Idaho, the limit for a single-family home in most counties is $472,030, but it increases in certain higher-priced areas. In Teton, for example, the 2023 limit crosses the million-dollar mark at $1,089,300 for a one-unit home purchase.

Idaho FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
BEAR LAKE$472,030$604,400$730,525$907,900$308,000
NEZ PERCE$472,030$604,400$730,525$907,900$310,000
TWIN FALLS$472,030$604,400$730,525$907,900$332,000

How are FHA loan limits determined?

Each year, the U.S. Department of Housing and Urban Development (HUD) adjusts the FHA loan limit for counties across the country based on a percentage of the conforming loan limit for conventional mortgages published by the Federal Housing Finance Agency (FHFA).

The “FHA floor,” or low-cost loan limit, is set first based on 65% of the conforming loan limit for the year. Then, the “FHA ceiling” is determined based on 150% of the year’s conforming loan limit to give extra borrowing power for consumers purchasing homes in high-cost parts of the nation. The FHA loan limits vary based on how much median home prices have risen or fallen in the past year.

How to qualify for an FHA loan in Idaho

FHA loans make buying a home in Idaho more accessible to consumers, with lower credit score requirements than conventional mortgages allow. The higher 2023 FHA loan limits come in handy with median home prices rising to $510,000 in several Idaho counties in the last year. The high-cost loan limits may help qualified homebuyers purchase homes in Camas and Teton counties, where median home prices spiked to $644,000 and $1,688,000, respectively.

However, regardless of whether you’re buying in a high-cost or low-cost area, you’ll need to meet the following minimum FHA mortgage requirements:

Down payment and credit score: As long as you have a credit score of at least 580, you may be eligible to make a down payment of just 3.5%. If your score is between 500 and 579, you may be eligible for FHA financing with a down payment of at least 10%.

Debt-to-income (DTI) ratio: Your DTI ratio measures how much monthly income you have coming in each month versus how much monthly debt you pay. FHA loans require a DTI ratio of 43% or less, but exceptions may be possible with strong credit or extra savings.

Mortgage insurance: FHA borrowers must pay an upfront mortgage insurance premium (UFMIP) equal to 1.75% of the total amount and an annual mortgage insurance premium (MIP), which ranges between 0.45% and 1.05%. The UFMIP is usually added to the loan amount, while the MIP is divided by 12 and then added to your monthly mortgage payments.

Occupancy: To buy a home with an FHA loan, you must live in the home as your primary residence for at least a year.

FHA appraisal: Properties purchased with an FHA loan must meet HUD’s requirements for livability and safety as verified by an FHA appraisal.

Buying a multifamily property with an FHA loan

The FHA loan program allows you to buy a multifamily home with up to four units, as long as you live in one of the units yourself. You’ll only need a minimum 3.5% down payment, and you may be able to use the rental income on the other units to qualify. If you don’t mind becoming a homeowner and landlord at the same time, this can be a great way to buy a home with built-in income to help cover your monthly payment.

FHA lenders in Idaho

Lender nameLT ratingMinimum FHA credit score
Flagstar Mortgage4 stars580
Churchill Mortgage3 stars620
PenFed Mortgage3 stars620
Guild Mortgage3 stars540
Rocket Mortgage5 stars580

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