When evaluating the capacity to buy a new house, some prospective purchasers consider using 401(k) funds to help with the down payment. This decision is informed by the income tax implications, the financial penalties for early withdrawal, and the confidence in continued employment.
Summary: The State of Idaho currently has multiple hot real estate markets. This article discusses the amount required to make a 20% down payment on a median value home in 4 cities in Idaho which have warm or hot markets. This article also encourages readers to reach out to Sammamish Mortgage to learn more about buying a home in Idaho.
When it comes to buying a house, saving up for the down payment is perhaps the most difficult feat to accomplish. Of course, home buyers also need to have stable employment so that they manage their mortgage loan, and securing that type of employment is not an easy task. But, saving up the big chunk needed for the initial down payment is a big hurdle, one which typically requires a great deal of effort, energy and perseverance. If you’re thinking about buying a home in Idaho, you’ve probably thought about what sort of down payment you’ll need if you decide to put down 20% in a given city. The amount you need will probably vary depending on which Idaho city you choose you purchase your home in. To get a sense of the down payment you’ll likely need, let’s look at the median home values in several key Idaho cities. It’s possible to find homes of higher or lower value than the median home values referenced here, and so these median values can only offer so much guidance. But these median values should give you some idea of how much you’ll need to have tucked away if you choose to buy in a certain area.
We will look at the amount you’ll need to cover a 20% down payment to buy a house in Idaho for 4 different cities. We will look at the median home values for the 4 largest cities in Idaho (by population): Boise, Meridian, Nampa, and Idaho Falls. Idaho is a relatively unpopulated state; out of these 4 cities, only Boise and Meridian have more than 100,000 residents, and Meridian only tops 100,000 by a few thousand. But, markets in Idaho are experiencing a lot of appreciation; this is true for the cities referenced here.
To recap, we will look at the following:
- 20% down payment for a house in Boise
- 20% down payment for a house in Meridian
- 20% down payment for a house in Nampa
- 20% down payment for a house in Idaho Falls
Down Payment for a Median Value House in Boise, ID
With a population of around 230,000, Boise is by far the largest city in the State of Idaho. It is also the capital city. According to Zillow, Boise currently has a very hot real estate market. The median home value in the city of Boise is currently about $301,500, as of July 2019. This figure of $301,500 represents an increase of 12.7% over the most recent 12 month period (that is, between July 2018 to July 2019). That is a very big increase! Now is a very good time to get involved in the Boise real estate market. To put a down payment of 20%, this means you’ll need to save $60,300. Putting down at least 20% is a good idea, because this typically means you will not need to obtain private mortgage insurance. Again, this figure of $60,300 only reflects the amount you’ll need for a median value home in Boise, you may need to save more depending on the specific home you select.
Down Payment for a Median Value House in Meridian, ID
The city of Meridian is the second largest city in Idaho. Currently, the population is roughly 106,800. According to Zillow, the city of Meridian currently has a median home value of $323,700, so it’s a bit higher than Boise. Zillow classifies the Meridian market as warm, which is a positive indicator. From July 2018 to July 2019, Meridian saw an increase of 13.1% in median home value! If we crunch the numbers, you’ll need to save $64,740 to make a 20% down payment on a median value home in Meridian, ID. That’s a sizeable sum, but given the gains experienced recently, it is likely to be a wise investment.
Down Payment for a Median Value House in Nampa, ID
The city of Nampa currently has a population of approximately 96,000, which makes it the third largest city in the State of Idaho. According to Zillow, the real estate market in Nampa is hot. Nampa is roughly as hot as the Boise market, in fact. This is good news to potential buyers. The median home value in the city of Nampa is currently about $239,100, and this value represents an increase of 18.7% over the previous 12 months! What’s more, Zillow predicts a further increase of 10.6% over the upcoming 12 months! If we do a quick calculation, we can see that a buyer will need to save $47,820 to put down 20% on a median value home in Nampa. Given the predicted trajectory of the market, this seems like it would be a very good investment.
Down Payment for a Median Value House in Idaho Falls, ID
The city of Idaho Falls currently has a population of around 60,000, making it considerably less populated than the other cities referenced above. However, notwithstanding its size, Idaho Falls arguably has the hottest real estate market in the State of Idaho at the present time. Zillow currently lists the Idaho Falls market as “very hot” and predicts an increase of 4.8% in median value between now and July 2020. Presently, the median home value is $205,200. Based on this value, we can compute that a buyer needs $41,040 to make a 20% down payment on a median value home in Idaho Falls. Given its current condition, buyers should give serious consideration to the Idaho Falls market.
Reach Out to Sammamish Mortgage for Additional Information
Clearly, it’s a no brainer that putting a 20% down payment to buy a house in Idaho is a wise choice at the present time. If you pick one of these cities to buy in, you’re likely to see a very good appreciation in the value of your home in the near future. The favorable market seen in these Idaho cities won’t necessarily last forever; but, things are certainly heading in a positive direction, and this is something you may want to capitalize on. The professionals at Sammamish Mortgage have a detailed knowledge of the Idaho market and can help you navigate the process of buying in Idaho. Buying a home is not an easy task. Obtaining outside counsel can make all the difference.
The professionals at Sammamish Mortgage are available to give you assistance with the home buying process. Sammamish Mortgage has been in business for over 27 years and we gladly serve customers who are looking to buy in the State of Idaho. To learn more, please Contact Us to receive additional information. You can also View Rates, get an instate Rate Quote, or even Apply Now if you’d like to dive into the application process.