Best Mortgage Lenders for First Time Home Buyers in Idaho

Jump straight to it: The best Minnesota mortgage lender for first time home buyers is Angel Oak Mortgage Solutions.

Thinking about buying your first home in Idaho? Navigating the home buying process and finding the right mortgage lender can feel overwhelming — but it doesn’t have to be. Use this Benzinga guide to help find the best lender in the Gem State.

Quick Look: The Best Mortgage Lenders for First Time Home Buyers in Idaho

• Best for Bank Statement Loans: Angel Oak Mortgage Solutions
• Best for Online Loans: Rocket Mortgage®
• Best for Government-Backed Loans: Guild Mortgage
• Best for Online Applications: guaranteed Rate
• Best for Face-to-Face Service: Bank of America
• Best for Quick Mortgage Approval: Caliber Home Loans
• Best for VA Loans: Veterans United

7 Best Mortgage Lenders in Idaho for First Time Home Buyers

To help you start looking for a home loan, Benzinga has compiled the top mortgage lenders in Idaho into 7 categories so you can find the right fit for your financial future.

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans for Idaho buyers. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, and second homes located in Idaho
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. You can also refinance into any of these loans. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

2. Best for Online Loans: Rocket Mortgage®

Owned by parent company Quicken Loans®, Rocket Mortgage® makes it easy for first time homebuyers in Idaho to navigate the mortgage process. Credit score requirement is 620. They offer a simple online application that recommends the right mortgage options for your budget. They also have 24/7 customer service and offer conventional, FHA, USDA and VA loans.

3. Best for Government-Backed Loans: Guild Mortgage

If you’re hoping to secure an FHA, USDA or VA loan, you might want to look into lending with Guild Mortgage. They offer a wide selection of government-backed home loans that can be bundled with Idaho state first time homebuyer’s assistance programs.  Credit score requirement is 620. They’ll also consider alternative credit when reviewing your mortgage application.

4. Best for Online Applications: guaranteed Rate

guaranteed Rate is well known for its easy application process and high customer satisfaction. The easy-to-navigate system walks you through every step of the mortgage process and offers customer assistance.

guaranteed Rate also has many small down payment loan options. It offers conventional, FHA, USDA and VA loans. Credit score requirement is 620.

5. Best for Face-to-Face Service: Bank of America

Would you prefer talking to a professional during the home loan process? Bank of America is a top lender in Idaho that allows you to apply online or in-person to ensure your mortgage application process is an easy experience. Credit score requirement is 620 and alternative credit is considered. It also features down payment assistance programs and considers alternative credit. Bank of America offers conventional, FHA and VA loans.

6. Best for Quick Mortgage Approval: Caliber Home Loans

As one of the top home loan providers in the country, Caliber Home Loans is a leading lender in Idaho. Caliber is well known for its streamlined online application process that is designed to speed up the loan application process.

It partners with many state assistance programs and provides helpful financial resources for military personal. Caliber Home Loans offers conventional, FHA, VA and USDA loans. Credit score requirement is 620.

7. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

Housing Market in Idaho: An Overview

The first step to finding a mortgage lender is understanding your local housing market. This will give you a better sense of what to expect when looking for financing.

Total households: 675,323 households

Median list price: $432,307

3 most expensive cities in Idaho to buy a house:

• Ketchum median home value: $1,324,860
• Sun Valley median home value: $1,272,849
• Coolin median home value: $1,094,254

3 most affordable cities in Idaho to buy a house:

• Twin Falls median home value:  $354,950
• Pocatello median home value: $367,450 
• Caldwell media home value: $370,000 

Knowing the average values of homes throughout the Gem State can help you set financial expectations while shopping for your new home. 

Preparing for a Mortgage

Getting ready for the mortgage process is an important step along your homebuyer journey. This guide takes you through everything you need to know about the mortgage application, explain how the process works, and highlight any important details you should prepare for.

When preparing to apply for a home loan, you’ll follow the same process whether you’re a new or existing homeowner. First, you’ll want to assess your financial status and make a few decisions before turning to a mortgage lender. You’ll need to:

• Know how much of a down payment you can afford. Some lenders offer options as low as 3% and others even have 0 down payment options. Be aware that the less money you put down, the higher the interest rate on your home. Take a look at your finances to decide whether a big down payment is an option for you.
• Know your credit score. Your credit score is used to determine the interest rate on your home loan and to approve you for financing. You’ll want to know where you stand before you begin the application process. Many lenders have credit score minimums, so understanding your score can help you select the right lender. 

Now you’re ready to gather all of the documentation you’ll need to start the application process.

It’s helpful to have all of the documentation handy before applying for a home loan. Here are the common items you should have on hand:

• Social Security number
• Last 2 years of taxes
• Last 2 months of pay stubs
• The total amount of money in your accounts (checking, savings, retirement and investments)

You may need additional paperwork, but these are the documents nearly all lenders require.

Mortgage Options

Since you’re a first-time homebuyer, you’ll want to take a look at all of the mortgage options available on the market. Let’s break down the top 5 mortgage types for Idaho homebuyers.

Conventional Loan

This type of loan is financed through banks, credit unions or other financial institutions. Conventional loans tend to have higher interest rates because they’re not backed by the government. On the upside, these loans can be easier to qualify for, since they have lower eligibility requirements.

FHA Loan

This type of loan is financed through the Federal Housing Administration (FHA) for first time homebuyers. FHA loans are backed by the government, have lower than market interest rates, with 3.5% down payment minimums and 580 credit score requirements. Most major lenders offer FHA loans.

USDA Loan

This type of loan is financed through the U.S. Department of Agriculture for houses purchased in rural areas. USDA loans are backed by the government, offer lower than market interest rates, have no down payment options and require a minimum of 640 credit score. Many major lenders offer USDA loans.

VA Loan

This type of loan is financed through the U.S. Department of Veterans Affairs for former or current military personnel and their families. VA loans are backed by the government, have lower than market interest rates, have no down payment options and no credit score requirement (though lenders may have their own minimums). Many major lenders and VA-only lenders offer VA loans.

Jumbo Loan

This type of loan is for homes purchased over $484,350 (this limit may be higher depending on where you live) and can be a conventional or FHA loan. Jumbo loans have higher down payment and credit score requirements. Many lenders request 20% down payments for jumbo loans, but some lenders, like Quicken Loans®, only require 10%.

Now that you understand the different mortgage types, let’s look at some first time homebuyer grants and programs in Idaho you should know.

First Time Home Buyer Programs in Idaho

The Idaho Housing and Finance Association offers a handful of programs to help first time homebuyers in the Gem State buy their first home. Most of these programs can be used in conjunction with most mortgage types.

• Idaho Housing Home Loan: This home loan program is designed to help low to mid-income, first time home buyers afford a home. This mortgage offers low interest rates, no down payment requirement options, no mortgage insurance options and down payment assistance and grants. You’ll need to meet income eligibility requirements to be approved for this mortgage.
• Homebuyer Tax Credits: This state program offers Mortgage Credit Certificates (MCCs) on up to 35% of their mortgage interest, for a maximum deduction of $2,000 on your taxes each year.

Current Mortgage Rates in Idaho

The interest rate you pay on your mortgage is referred to as your mortgage rate. Scoring a lower mortgage rate on your home loan can save you tens of thousands of dollars over the course of your mortgage. 

Your mortgage rate is determined by your lender by analyzing your credit score, down payment, home location, mortgage type and mortgage term (or the length of your home loan).

There are 2 main loan terms available: fixed and adjustable. You’ll pay a set amount every month for the duration of your loan with a fixed mortgage. You won’t pay fixed amounts with adjustable mortgages, however. Instead, you’ll pay a fixed amount for an introductory period and then your payments and mortgage rate will fluctuate based on the real estate market.

Mortgage rates in Idaho vary greatly from city to city. Benzinga keeps up to date on local market trends in the Gem State so we can show you the most current rate information.

Let’s look at some of the more common loan terms and mortgage rates for Idaho.

Closing a Mortgage

The last step in the mortgage process is closing. During this stage you’ll sign all of the paperwork, review all information and verify the terms of your loan. This is also when you pay the down payment and closing costs.

On your closing day, you’ll usually walk through your home to confirm it’s in the same condition you agreed upon. Next, you’ll meet with your agent (and possibly the seller’s agent) to finalize all paperwork. After this is complete, you’ll receive your keys to your new home.

This closing process takes between 30–45 days and varies by lender. Online lenders, like Rocket Mortgage®, can typically speed up the process thanks to faster approval processes.

Here are some average closing days from top lenders in Idaho.

Ready to Buy Your First Home in Idaho?

It’s easy to find financial assistance when buying your first home in Idaho. Take advantage of the many state first time home buyer programs and find a lender who offers the incentives that matter most to you.

Shop around for a low rate, but at the end of the day, choose a lender who meets all of your financial needs.

Frequently Asked Questions