FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Idaho

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Home loans backed by the Federal Housing Administration (FHA) offer more lenient qualifying requirements than conventional mortgages. However, it’s also important to note that there is a limit to how much you can borrow with an FHA loan.

In Idaho, the limit for a single-family home in most counties is $420,680, but it increases in certain higher-priced areas. In Teton, for example, it extends all the way to $970,800.

Idaho FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
BEAR LAKE$420,680$538,650$651,050$809,150$240,000
NEZ PERCE$420,680$538,650$651,050$809,150$272,000
TWIN FALLS$420,680$538,650$651,050$809,150$288,000

How are FHA loan limits determined?

Each year, the Federal Housing Finance Agency (FHFA) analyzes median home price data and uses it to set a conforming loan limit for conventional mortgages. In turn, the U.S. Department of Housing and Urban Development (HUD) uses that information to set the FHA loan limit.

HUD first sets the “FHA Floor,” or the minimum loan limit, which is worth 65% of the conforming loan limit for the year. Then, it sets the “FHA ceiling,” which is equal to 115% of the year’s conforming loan limit.

Once the year’s floor and ceiling have been set, each county and metropolitan statistical area (MSA) in the nation is given its own loan limit within that range. On a local level, the FHA loan limit is determined by analyzing median home price data from the prior year.

How to qualify for an FHA loan in Idaho

Idaho FHA loans make buying a home more accessible because they have lower credit score and down payment requirements than conventional mortgages. In addition, if this is your first time purchasing a home, you may also be a candidate for an Idaho first-time homebuyer program, which can provide further assistance with your down payment and closing costs.

However, regardless of whether or not you’ve been through the home buying process before, you’ll need to meet the following FHA loan requirements in order to qualify:

A 3.5% down payment: As long as you have a credit score of at least 580, you will be eligible to make a down payment of just 3.5%. If your score is lower, you can still be approved for a loan. You’ll have to make a down payment of at least 10%.

A credit score of 500: Those with a credit score as low as 500 can be approved for an FHA loan. However, if your score falls below 580, you’ll have to be prepared to make a larger down payment.

A debt-to-income (DTI) ratio of 43% or less: Your DTI ratio is a measure of how much income you have coming in each month versus how much of it goes to pay off your debts. In general, FHA loans require that your DTI is less than 43%, but some individual lenders may make exceptions to this rule.

Primary residence: If you plan to use an FHA loan to buy your home, the property must be owner-occupied and it must serve as your primary residence. FHA loans cannot be used to purchase vacation homes or investment properties.

FHA appraisal: Properties that are financed with an FHA loan must meet HUD’s  requirements for durability and safety. An FHA appraisal must be conducted to qualify for an FHA home loan.

FHA loan limits: The purchase price of the property that you intend to buy must be less than or equal to that year’s FHA loan limit for the county in which the home is located.

Mortgage insurance: FHA borrowers must pay an upfront mortgage insurance premium (UMIP), which is equal to 1.75% of the total amount and is typically rolled into your mortgage. Then, in addition, they must also pay an annual mortgage insurance premium (MIP), which ranges between 0.45% and 1.05%, is divided by 12 and then added to your monthly mortgage payments. The MIP is dependent on your loan-to-value (LTV) ratio.

Buying a multifamily property with an FHA loan

The FHA loan program allows you to buy a multifamily property with up to four units, as long as you live in one of the units yourself.

As long as you plan to live in the house for at least 12 months after you purchase it, you’re still able to put down a minimum 3.5% down payment. Known as “house hacking,” this process allows you to take advantage of the FHA’s lenient qualifying requirements while still capitalizing on the opportunity to earn some additional rental income.

FHA lenders in Idaho

If you’re ready to take the next step, below are five highly-rated lenders that operate in Idaho. Click on each lender’s name to read a full review of its services.

Lender nameLT ratingMinimum FHA credit score
Guild Mortgage9/10540
PennyMac Mortgage9/10640
Rocket Mortgage9/10580
Churchill Mortgage8/10620


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