Bank of Idaho Mortgage Rates and Requirements Explained

Bank of Idaho offers a range of mortgage options to suit different needs and budgets. They have a variety of loan programs, including fixed-rate and adjustable-rate mortgages, as well as government-backed loans like FHA and VA loans.

Their mortgage rates vary depending on the loan program and the borrower's creditworthiness. For example, a 30-year fixed-rate mortgage might have a lower interest rate than a 15-year fixed-rate mortgage.

Bank of Idaho considers factors such as credit score, income, and debt-to-income ratio when determining mortgage eligibility. A minimum credit score of 620 is typically required for most loan programs.

To qualify for a mortgage with Bank of Idaho, borrowers must also meet certain income and debt requirements. For instance, they may require a minimum income of $50,000 to $75,000, depending on the loan program.

For your interest: Idaho Mortgage Loans

Mortgage rates in Idaho have been on a gradual decline since mid-July, with current rates at 7.06% for a 30-year fixed mortgage and 6.56% for a 15-year fixed mortgage as of January 6, 2025.

If you're buying a house in Idaho, you should know that the market is still competitive, but has shown signs of cooling. Over 50 percent of sales in the state came in under the list price in July 2024, according to Zillow.

Refinancing might not be the most appealing choice right now, especially if you locked in a mortgage rate in the 7 to 8 percent range. However, a cash-out refinance or home equity line of credit (HELOC) might be an option if you're remodeling your home or need funds for another purpose.

The current mortgage rates in Idaho are as follows:

If you're eligible, you can lower your interest rate, which could lead to lower payments and less money paid towards interest.

For your interest: Lower You Mortgage Interest Rates

To qualify for a mortgage in Idaho, you'll need to meet certain requirements. Some loans, like FHA Loans for First-Time Home Buyers, can be secured with as little as 3.5% down payment.

Traditional home loans, on the other hand, typically require a 5 to 20% down payment. If you're a qualifying veteran or active-duty service member, you may be able to purchase a home with 0% down using a VA Home Loan.

For self-employed individuals, Bank Statement Loans can be a good option, allowing them to qualify for a home loan based on their bank statement deposits rather than their tax return or W2.

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Bank of Idaho tends to favor borrowers with lower debt-to-income (DTI) ratios. Specifically, they lent most frequently to those with DTI ratios of 20-30%, with 31 originations.

A DTI ratio of 20-30% is considered relatively healthy, as it indicates that borrowers have a manageable amount of debt compared to their income. In contrast, higher DTI ratios can be a red flag for lenders.

Bank of Idaho's preference for lower DTI ratios is likely due to their desire to minimize risk. By lending to borrowers with manageable debt, they can reduce the likelihood of default.

Additional reading: 20 Year 2nd Mortgage Rates

Here's a breakdown of the most common DTI ratios and the number of originations for each:

Keep in mind that a DTI ratio of 43% or higher may be considered high-risk by many lenders, including Bank of Idaho. However, it's worth noting that they did work with borrowers who had DTI ratios as high as 45%, albeit with fewer originations.

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Your credit score plays a significant role in determining whether you'll get approved for a mortgage in Idaho. It directly impacts a lender's decision to approve you for the loan because it demonstrates your likelihood to repay the home loan.

A minimum credit score is required by Idaho mortgage lenders, but the specific score varies from lender to lender. If your credit history shows that you don't pay Idaho loans back in a timely manner, then your application is more likely to get rejected.

A good credit score can also impact your interest rate, which influences how much your mortgage costs you over the life of the loan.

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The mortgage process can be overwhelming, but understanding the steps involved can make it more manageable.

First, you'll need to check your credit score, which can affect the interest rate you qualify for.

A good credit score can save you thousands of dollars in interest payments over the life of the loan.

Next, you'll need to gather financial documents, including pay stubs and bank statements.

These documents will help lenders determine how much you can afford to borrow.

You'll also need to decide on a mortgage type, such as a fixed-rate or adjustable-rate loan.

Bank of Idaho offers a variety of mortgage products, including fixed-rate loans with competitive interest rates.

Once you've chosen a loan, you'll need to apply and provide more financial information.

The lender will review your application and provide a pre-approval letter.

This letter will specify how much you're qualified to borrow and at what interest rate.

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