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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.
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 $391,794, as of January 2021.
This figure of $391,794 represents an increase of 18.2% over the most recent 12 month period (that is, between January 2020 and January 2021). 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 $78,358.
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 $78,358 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.
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 $405,093, so it’s a bit higher than Boise.
Zillow classifies the Meridian market as hot, which is a positive indicator. From January 2020 to January 2021, Meridian saw an increase of 15.8% in median home value! If we crunch the numbers, you’ll need to save $81,018 to make a 20% down payment on a median value home in Meridian, ID. That’s a sizable sum, but given the gains experienced recently, it is likely to be a wise investment.
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 $296,051, and this value represents an increase of 18.6% over the previous 12 months! What’s more, Zillow predicts a further increase of 12.2% over the upcoming 12 months!
If we do a quick calculation, we can see that a buyer will need to save $59,210 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.
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 is one of the hottest real estate markets in the State of Idaho at the present time. Zillow currently lists the Idaho Falls market as “very hot” and predicts an increase of 11.3% in median value between now and January 2022.
Presently, the median home value is $263,402. Based on this value, we can compute that a buyer needs $52,680 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.
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.
The professionals at Sammamish Mortgage are available to give you assistance with the home buying process. Sammamish Mortgage has been in business since 1992 and we gladly serve customers who are looking to buy in the State of Idaho, along with Washington, Oregon, and Colorado. 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.
Wondering how to come up with the down payment for your hoped for first home? Don’t tap that IRA account quite yet; you could be endangering your retirement.
Summary: It can be tough to gather up enough funds to come up with a down payment for a home. But with a special type of insurance, you may find it easier to qualify for a mortgage. This article will…